Systemic Risk, Monetary Policy and Portfolio Diversification in the Great Crises’ Era

This volume aims to investigate the evolution of systemic risk: from identifying its components (characteristics) to its measurement and the tools to mitigate it. The concept of systemic risk has become central to the economic policy debate following the various financial crises that have occurred in recent years. These events have stimulated the development of international literature to measure and regulate systemic risk. The book sheds light on the role played by the European Central Bank (ECB) in limiting and managing banking contagion between countries (e.g. credit risk), which plays a crucial role in the current context of high uncertainty (COVID-19 and the Russia-Ukraine war). This volume contains several groundbreaking contributions dedicated to (i) identifying the multidimensionality of systemic risk, (ii) understanding how the use of network science may help deepen the knowledge of systemic risk, (iii) visualising how monetary policy interventions have affected contagion risk, and (iv) highlighting how asset allocation strategies can be a proper systemic risk management tool, especially in the alternative finance context. Each of the six essays tackles one of these goals by proposing different points of view in approaching the study and solving some concrete issues posed by the turbulent recent Great Crises Era.