How cash flow shocks spread: ECB paper
A European Central Bank (ECB) working paper published in December uses flow of funds data to build a network of balance sheet exposures that can track shocks across sectors.
In simulations the authors, Olli Castrén and Ilja Kristian Kavonius, analyse the propagation of shocks and contagion over several periods and find that under mark-to-market accounting, "local cash-flow shocks can spread around quickly along the bilateral exposures even when there are no defaults in the process, with banks
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