Arbeitspapier
Uncertainty in an Interconnected Financial System, Contagion, and Market Freezes
This paper studies contagion and market freezes caused by uncertainty in financial network structures and provides theoretical guidance for central banks. We establish a formal model to demonstrate that, in a financial system where financial institutions are interconnected, a negative shock to an individual financial institution could spread to other institutions, causing market freezes because of creditors' uncertainty about the financial network structure. Central bank policies to alleviate market freezes and contagion, such as information policy, bailout policy and the lender of last resort policy, are examined.
- Language
-
Englisch
- Bibliographic citation
-
Series: Queen's Economics Department Working Paper ; No. 1308
- Classification
-
Wirtschaft
Asymmetric and Private Information; Mechanism Design
- Subject
-
Interconnection
Market Freezes
Contagion
Financial Crises
- Event
-
Geistige Schöpfung
- (who)
-
Li, Mei
Milne, Frank
Qui, Junfeng
- Event
-
Veröffentlichung
- (who)
-
Queen's University, Department of Economics
- (where)
-
Kingston (Ontario)
- (when)
-
2013
- Handle
- Last update
-
10.03.2025, 11:43 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Li, Mei
- Milne, Frank
- Qui, Junfeng
- Queen's University, Department of Economics
Time of origin
- 2013
Other Objects (12)
“Confucian Revival” From Both Chinese and Western, Ancient and Modern Perspectives: Observations and Reflections on Post-Millennium Research Into Confucianism
Coordination Failure in Technological Progress, Economic Growth and Volatility
Investment Complementarities, Coordination Failure and Systemic Bankruptcy
The role of P53 up-regulated modulator of apoptosis (PUMA) in ovarian development, cardiovascular and neurodegenerative diseases
Crystal structure of dichlorido-tetrakis ((E)-(RS)-1-(2,4-dichlorophenyl)-4,4-dimethyl-2-(1,2,4-triazol-1-yl) pent-1-en-3-ol- κ 1 N) cadmium (II), C 60 H 68 O 4 N 12 Cl 10 Cd
The Role of Large Players in a Dynamic Currency Attack Game
Composite hemangioendothelioma- report of two cases located in bone and review of the literature
The asymptotic behavior of the stochastic coupled Kuramoto–Sivashinsky and Ginzburg–Landau equations
Deep multimodal fusion for ground-based cloud classification in weather station networks
Advanced glaucoma secondary to bilateral idiopathic dilated episcleral veins – a case report
Ionospheric influence on the seismo-telluric current related to electromagnetic signals observed before the Wenchuan M S 8.0 earthquake
The signaling effect and optimal LOLR policy
“Confucian Revival” From Both Chinese and Western, Ancient and Modern Perspectives: Observations and Reflections on Post-Millennium Research Into Confucianism
Coordination Failure in Technological Progress, Economic Growth and Volatility
Investment Complementarities, Coordination Failure and Systemic Bankruptcy
The role of P53 up-regulated modulator of apoptosis (PUMA) in ovarian development, cardiovascular and neurodegenerative diseases
Crystal structure of dichlorido-tetrakis ((E)-(RS)-1-(2,4-dichlorophenyl)-4,4-dimethyl-2-(1,2,4-triazol-1-yl) pent-1-en-3-ol- κ 1 N) cadmium (II), C 60 H 68 O 4 N 12 Cl 10 Cd
The Role of Large Players in a Dynamic Currency Attack Game
Composite hemangioendothelioma- report of two cases located in bone and review of the literature
The asymptotic behavior of the stochastic coupled Kuramoto–Sivashinsky and Ginzburg–Landau equations
Deep multimodal fusion for ground-based cloud classification in weather station networks
Advanced glaucoma secondary to bilateral idiopathic dilated episcleral veins – a case report
Ionospheric influence on the seismo-telluric current related to electromagnetic signals observed before the Wenchuan M S 8.0 earthquake
The signaling effect and optimal LOLR policy
“Confucian Revival” From Both Chinese and Western, Ancient and Modern Perspectives: Observations and Reflections on Post-Millennium Research Into Confucianism
Coordination Failure in Technological Progress, Economic Growth and Volatility
Investment Complementarities, Coordination Failure and Systemic Bankruptcy
The role of P53 up-regulated modulator of apoptosis (PUMA) in ovarian development, cardiovascular and neurodegenerative diseases
Crystal structure of dichlorido-tetrakis ((E)-(RS)-1-(2,4-dichlorophenyl)-4,4-dimethyl-2-(1,2,4-triazol-1-yl) pent-1-en-3-ol- κ 1 N) cadmium (II), C 60 H 68 O 4 N 12 Cl 10 Cd
The Role of Large Players in a Dynamic Currency Attack Game
Composite hemangioendothelioma- report of two cases located in bone and review of the literature
The asymptotic behavior of the stochastic coupled Kuramoto–Sivashinsky and Ginzburg–Landau equations
Deep multimodal fusion for ground-based cloud classification in weather station networks
Advanced glaucoma secondary to bilateral idiopathic dilated episcleral veins – a case report
Ionospheric influence on the seismo-telluric current related to electromagnetic signals observed before the Wenchuan M S 8.0 earthquake