E-raamat: Risk Topography: Systemic Risk and Macro Modeling

Bringing together the work of leading academic researchers, central bankers, and other financial market experts, Risk Topography explores ideas on advancing measurement and macroeconomic modeling to face these challenges. This book is particularly focused on measures that highlight vulnerabilities that make the economy susceptible to adverse feedback loops, liquidity spirals and perilous mechanisms. While these types of vulnerabilities have often been identified, they have not been systematically measured. Chapters also address how policymakers should think about measurement of a financial world of increasing complexity and uncertainty, and what the tradeoffs are in making measured data public. Additionally, the book offers explicit measurement strategies that can be implemented either immediately or very soon. Risk Topography will be an invaluable resource for regulators working to improve current measurement systems, as well as academics that plan to conceptualize effective measurement.

The recent financial crisis and the difficulty of using mainstream macroeconomic models to accurately monitor and assess systemic risk have stimulated new analyses of how we measure economic activity and the development of more sophisticated models in which the financial sector plays a greater role.

Markus Brunnermeier and Arvind Krishnamurthy have assembled contributions from leading academic researchers, central bankers, and other financial-market experts to explore the possibilities for advancing macroeconomic modeling in order to achieve more accurate economic measurement. Essays in this volume focus on the development of models capable of highlighting the vulnerabilities that leave the economy susceptible to adverse feedback loops and liquidity spirals. While these types of vulnerabilities have often been identified, they have not been consistently measured. In a financial world of increasing complexity and uncertainty, this volume is an invaluable resource for policymakers working to improve current measurement systems and for academics concerned with conceptualizing effective measurement.