Risk Topography: Systemic Risk and Macro Modeling

The recent financial crisis and the difficulty of using mainstream macroeconomic models to accurately monitor and assess systemic risk have stimulated new analyses of how we measure economic activity and the development of more sophisticated models in which the financial sector plays a greater role.
Markus Brunnermeier and Arvind Krishnamurthy have assembled contributions from leading academic researchers, central bankers, and other financial market experts that explore ways of refining and enhancing macroeconomic modeling in order to achieve more-accurate economic measurement of risk factors. Essays in this volume focus on the development of models capable of highlighting and measuring vulnerabilities that leave the economy susceptible to adverse feedback loops and liquidity spirals. In a financial world of increasing complexity and uncertainty, this volume is an invaluable resource for policymakers working to design measurement systems and for academics concerned with conceptualizing effective measurement strategies.