Global Market Conditions and Systemic Risk /

This paper examines several key global market conditions, such as a proxy for market uncertainty and measures of interbank funding stress, to assess financial volatility and the likelihood of crisis. Using Markov regime-switching techniques, it shows that the Lehman Brothers failure was a watershed...

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Detalhes bibliográficos
Autor principal: Gonzalez-Hermosillo, Brenda
Outros Autores: Hesse, Heiko
Formato: Periódico
Idioma:English
Publicado em: Washington, D.C. : International Monetary Fund, 2009.
Colecção:IMF Working Papers; Working Paper ; No. 2009/230
Acesso em linha:Full text available on IMF
Descrição
Resumo:This paper examines several key global market conditions, such as a proxy for market uncertainty and measures of interbank funding stress, to assess financial volatility and the likelihood of crisis. Using Markov regime-switching techniques, it shows that the Lehman Brothers failure was a watershed event in the crisis, although signs of heightened systemic risk could be detected as early as February 2007. In addition, we analyze the role of global market conditions to help determine when governments should begin to exit their extraordinary public support measures.
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Descrição Física:1 online resource (22 pages)
Formato:Mode of access: Internet
ISSN:1018-5941
Acesso:Electronic access restricted to authorized BRAC University faculty, staff and students