Systemic Risk

  • Morten Arisson


Systemic risk is popularly understood as the risk of collapse of an entire financial system, and we show that it is also a feature of democracy. Investors believe in the existence of systemic risk and in their ability to monitor it with the use of statistical methods. Through a historical review of monetary developments since 1913, we show that the collapse of the entire financial system is not a risk but the natural and logical outcome resulting from precise, explicit and purposeful actions carried out by governments.


Systemic risk Centralized system Distributed system Decentralized system Democracy Fractional reserve banking Gold standard Gold exchange standard Currency swaps Genoa conference Bretton Woods Group of ten Ossola report Adjustment Executive order 6102 Executive order 11615 


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Copyright information

© The Author(s) 2018

Authors and Affiliations

  • Morten Arisson
    • 1
  1. 1.Credit Portfolio ManagerTorontoCanada

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