Leverage, Systemic Risk and Financial System Health: How Do We Develop a Healthy Financial System? by Angela Turcott. Washington University in Saint Louis – John M. Olin Business School, December 24, 2013.
“This paper briefly discusses the causes of the 2007-09 financial crisis and the extent to which the systemic risk that buffeted this crisis was linked to excessive leverage. It then focuses on what is needed for a healthy financial system that has a relatively low probability of a systemic financial crisis, and the steps that will need to be taken to get there.”
