Section B. The Network Analysis Approach
  • 1 0000000404811396 Monetary Fund


The global financial crisis that erupted in 2007 prompted policymakers and financial stability practitioners to intensify their search for a better understanding of how and when financial linkages could pose systemic risks. Hence, it is not surprising that there has been a surge of work in this area seeking to address some of the key conceptual aspects of financial interconnectedness. However, an ongoing challenge for policymakers has been the difficulty in turning rather theoretical proposals into methodologies that can be applied to detect and assess important linkages on an ongoing basis.

Author: Ms. Li L Ong