Network models, stress testing methods and early warning systems are attracting growing interest both among scholars and practitioners. In this short paper, we illustrate some of the insights they have to offer both in terms of new fundamental scientific understanding of the emergence systemic risk and in terms of concrete applications to the policy areas of financial stability and macro-prudential policy. Finally, we discuss new research pathways to address the challenging questions still open, including multiplex networks, big financial data, and climate-finance.
Financial networks and stress testing: Challenges and new research avenues for systemic risk analysis and financial stability implications
Stefano Battiston, Serafin Martinez-Jaramillo
Journal of Financial Stability
Volume 35, April 2018, Pages 6-16
See Also: Special Issue: Network models, stress testing and other tools for financial stability monitoring and acroprudential policy design and implementation
Edited by Dr Serafín Martínez Jaramillo, Dr.Stefano Battiston
Volume 35, Pages 1-242 (April 2018)