Source: Andrew Haldane, Bank of England
Financial risk managers could learn a lot from the study of bio-engineering and natural sciences says Andy Haldane, the Bank of England's head of financial stability.
This paper considers the financial system as a complex adaptive system. It applies some of the lessons from other network disciplines – such as ecology, epidemiology, biology and engineering – to the financial sphere.
The author compares the measures used to contain the Sars outbreak in 2002 and asks whether similar restrictions could be used to limit the contagious effects of systemic breakdowns in the financial system.
Download the document now 494.2 kb (PDF File)