Risk Topography ─ Systemic Risk and Macro Modeling

Bringing together the work of leading academic researchers, central bankers, and other financial market experts, Risk Topography explores ideas on advancing measurement and macroeconomic modeling to face these challenges. This book is particularly focused on measures that highlight vulnerabilities that make the economy susceptible to adverse feedback loops, liquidity spirals and perilous mechanisms. While these types of vulnerabilities have often been identified, they have not been systematically measured. Chapters also address how policymakers should think about measurement of a financial world of increasing complexity and uncertainty, and what the tradeoffs are in making measured data public. Additionally, the book offers explicit measurement strategies that can be implemented either immediately or very soon. Risk Topography will be an invaluable resource for regulators working to improve current measurement systems, as well as academics that plan to conceptualize effective measurement.

Markus Brunnermeier is the Edwards S. Sanford Professor of Economics at Princeton University and a research associate of the NBER. Arvind Krishnamurthy is the Harold L. Stuart Professor of Finance in the Kellogg School of Management at Northwestern University and a research associate of the NBER.