Systemic Risk

The global financial crisis revealed a critical need for a substantial reassessment of the fundamental workings of financial systems, their interactions with the real economy, and the circumstances that tip such systems from stability to instability. In this book, Prasanna Gai provides a fresh look at these increasingly important fields.

Sebastian Mallaby makes the case that hedge funds are important providers of liquidity to financial markets and not a destabilizing threat to the financial system.