Financial System, Markets and Institutional Changes ( eds: Ted Linblom, Stefan Sjogren, and Magnus Willesson), Palgrave McMillan, Forthcoming
15 Pages Posted: 26 Dec 2013 Last revised: 12 Jan 2014
Date Written: January 12, 2014
This paper briefly discusses the causes of the 2007-09 financial crisis and the extent to which the systemic risk that buffeted this crisis was linked to excessive leverage. It then focuses on what is needed for a healthy financial system that has a relatively low probability of a systemic financial crisis, and the steps that will need to be taken to get there.
Keywords: financial crises, leverage, systemic risk, healthy financial system
JEL Classification: G21, G28
Suggested Citation: Suggested Citation
Thakor, Anjan V., Leverage, Systemic Risk and Financial System Health: How Do We Develop a Healthy Financial System? (January 12, 2014). Financial System, Markets and Institutional Changes ( eds: Ted Linblom, Stefan Sjogren, and Magnus Willesson), Palgrave McMillan, Forthcoming. Available at SSRN: https://ssrn.com/abstract=2371745 or http://dx.doi.org/10.2139/ssrn.2371745