Evaluating the Government as a Source of Systemic Risk
Name
Lucas_Evaluating the.pdf
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189.97 KB
Format
Adobe PDF
Checksum (MD5)
f73fce40353eda8e7b34daec75aff4ec
Author(s)
Lucas, Deborah J.
Date Issued
November 2014
Journal
Journal of Financial Perspectives
Publisher
Ernst & Young Global Limited
Citation
Lucas, Deborah. "Evaluating the Government as a Source of Systemic Risk." Journal of Financial Perspectives 2(3) (November 2014).
Version
Author's final manuscript
Abstract
In the wake of the financial crisis, the Dodd–Frank Act established the Financial Stability Oversight Council (FSOC) and the Office of Financial Research (OFR) to address the concern that policymakers lacked sufficient data to anticipate emerging threats to financial stability. Although most discussions about systemic risk have focused on the private sector, the U.S. Federal Government is the world’s largest and most interconnected financial institution, and through its activities — as a banker, rule-maker and regulator — represents a major source of systemic risk. This paper makes the qualitative and quantitative case that the government is a significant source of such risks, discusses the nature of the risks and offers suggestions for how the OFR, through its data initiatives and analyses, could help illuminate and mitigate those risks.
MIT Department
Sloan School of Management
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Creative Commons Attribution-Noncommercial-Share Alike
Persistent DSpace Link
DOI of Published Version
https://www.gfsi.ey.com/the-journal-x.php?pid=10&id=74
