The Limits of Market-Based Risk Transfer and Implications for Managing Systemic Risks
AbstractThe paper discusses the limits to market-based risk transfer in the financial system and the implications for the management of systemic long-term financial risks. Financial instruments or markets to transfer and better manage these risks across institutions and sectors are, as yet, either nascent or nonexistent. As such, the paper investigates why these markets remain "incomplete." It also explores a range of options by which policymakers may encourage the development of these markets as part of governments' role as a risk manager.
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Bibliographic InfoPaper provided by International Monetary Fund in its series IMF Working Papers with number 06/217.
Date of creation: 01 Oct 2006
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