Risk-sharing and the creation of systemic risk

We address the paradox that financial innovations aimed at risk-sharing appear to have made the world riskier. Financial innovations facilitate hedging idiosyncratic risks among agents; however, aggregate risks can be hedged only with liquid assets. When risk-sharing is primitive, agents self-hedge...

Ausführliche Beschreibung

Bibliographische Detailangaben

Veröffentlicht in:	Journal of risk and financial management 2020-08, Vol.13 (8), p.1-18
Hauptverfasser:	Acharya, Viral V, Iyer, Aaditya M, Sundaram, Rangarajan K
Format:	Artikel
Sprache:	eng
Schlagworte:	Bank banking Central banks Clearing clearinghouses Cost control Derivatives Finanzprodukt Lender of Last Resort Liquid assets Risikomanagement Risk exposure systemic risk Systemrisiko
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