Risky business: Finding the balance between financial stability and risk
It is important that we understand and do something about systemic risk, write Jon Danielsson and Jean-Pierre Zigrand. The problem is that we desire two incompatible things simultaneously: we wish the financial system to be safe; but we also want to finance risky economic activity.
The world’s economy was on the brink of collapse in the autumn of 2008. Confidence, […]