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Addressing Interconnectedness; Concepts and Prudential Tools

Listed author(s):
  • Nicolas Arregui
  • Mohamed Norat
  • Antonio Pancorbo
  • Jodi G. Scarlata
  • Eija Holttinen
  • Fabiana Melo
  • Jay Surti
  • Christopher Wilson
  • Rodolfo Wehrhahn
  • Mamoru Yanase
Registered author(s):

    This paper reviews tools used to identify and measure interconnectedness and raises the awareness of policymakers as to potential cross-sectional implications of prudential tools aimed at controlling interconnectedness. The paper examines two sets of tools—developed at the IMF and externally—to identify the implications of interconnectedness in systemic risk and how these tools have been applied in IMF surveillance. The paper then proposes a preliminary framework to analyze some key internationally-agreed-upon and national prudential tools and finds that while many prudential tools are effective in reducing interconnectedness, the interaction among these tools is far less clear cut.

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    Paper provided by International Monetary Fund in its series IMF Working Papers with number 13/199.

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    Length: 58
    Date of creation: 26 Sep 2013
    Handle: RePEc:imf:imfwpa:13/199
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