Systemic Risk during the Global Financial Crisis: Symptoms and Mechanisms of Propagation
Résumé
The aim of this chapter is to discuss the triggers, the symptoms, and the originality of the subprime crisis. We describe the main propagation mechanisms and attempt to explain the role of the loan securitization in the transmission of the shock wave. Then, we present the various faces of systemic risk, defined as the risk of collapse of the entire financial system. Finally, we propose a set of concluding remarks and a glossary of technical terms.