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Modelling Financial Instability: A Survey of the Literature

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  • Alexandra Lai

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Paper provided by Bank of Canada in its series Working Papers with number 02-12.

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Length: 50 pages Abstract: The magnitude and frequency of recent financial crises underscore the importance of understanding financial instability for the purpose of crisis prevention and crisis management. This paper brings together and adds structure to the theoretical literature on financial instability and the implications they carry for policy-makers. In addition to clarifying the theoretical underpinnings for studying financial crises, it points to several directions for future theoretical research necessary to fill the gaps of our understanding of financial instability.
Date of creation: 2002
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Handle: RePEc:bca:bocawp:02-12

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Keywords: Financial institutions; Financial markets; Financial services;

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Citations

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Cited by:
  1. Mark Illing & Ying Liu, 2003. "An Index of Financial Stress for Canada," Working Papers 03-14, Bank of Canada.
  2. Eric Santor, 2003. "Banking Crises and Contagion: Empirical Evidence," Working Papers 03-1, Bank of Canada.
  3. Fulbert Tchana Tchana, 2009. "Regulation and Banking Stability: A Survey of Empirical Studies," Working Papers 136, Economic Research Southern Africa.
  4. Falko Fecht, 2003. "On the Stability of Different Financial Systems," Finance 0305008, EconWPA.
  5. Moore, Winston, 2009. "How do financial crises affect commercial bank liquidity? Evidence from Latin America and the Caribbean," MPRA Paper 21473, University Library of Munich, Germany.
  6. Jonathan Njoku, 2012. "Surveillance model of going concern in banking," African Journal of Accounting, Auditing and Finance, Inderscience Enterprises Ltd, vol. 1(1), pages 40-76.
  7. Diego Nocetti, 2006. "Central bank´s value at risk and financial crises: An application to the 2001 Argentine crisis," Journal of Applied Economics, Universidad del CEMA, vol. 0, pages 381-402, November.
  8. Veronika Dolar & Césaire Meh, 2002. "Financial Structure and Economic Growth: A Non-Technical Survey," Working Papers 02-24, Bank of Canada.
  9. Bauer, Christian & Herz, Bernhard & Karb, Volker, 2006. "How likely are macroeconomic crises in the CIS?," Research in International Business and Finance, Elsevier, vol. 20(2), pages 227-238, June.
  10. Cristian Ionescu, 2012. "The Herd Behavior and the Financial Instability," Annals of the University of Petrosani, Economics, University of Petrosani, Romania, vol. 12(1), pages 129-140.

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