Too-connected-to-fail Institutions and Payments System?s Stability: Assessing Challenges for Financial Authorities

Number: 
644
Published: 
Classification JEL: 
E58, E44, C63, G21, D85
Keywords: 
Human capital agglomeration, Social returns, Private returns, Externalities, Uncertainty, Fiscal policy

The most recent episode of market turmoil exposed the limitations resulting from the traditional focus on too-big-to-fail institutions within an increasingly systemic-crisis-prone financial system, and encouraged the appearance of the too-connected-to-fai