What Financial Regulators Can Learn from Network Theory

The video discusses a project focused on understanding economic systems as complex networks. It highlights the challenges in identifying systemically important financial institutions and the role of long-range correlations. The project integrates tools from physics and economics to address these challenges and aims to provide insights for policymakers. The discussion also covers the limitations of current regulatory measures and the potential for new approaches to enhance financial stability.

How does the project aim to bridge the gap between statistical physics and economics?

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What are the limitations of current regulatory measures in financial systems?

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In what ways can policymakers benefit from understanding complex economic networks?

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Describe the potential consequences of a collapse in the interbank market.

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