Financial Instability and Systemic Risk: From the Global Financial Crisis and Beyond (Routledge International Studies in Money and Banking)

The Global Financial Crisis revealed that systemic fragility arises not only from identifiable risks but also from systemic uncertainty-the endogenous and often unpredictable dynamics that build up within financial systems and amplify across time and space.More than a decade later, this dual challenge remains pressing as the rising inequality and geopolitical insecurity have underscored the vulnerability of interconnected economies and societies. This book illustrates how agent-based modelling (ABM) can enrich the study of crises, systemic risk and uncertainty, and the distributional effects of policies that are designed to contain them.Rather than treating crises as external shocks, the book highlights how fragility can emerge endogenously within economies that are understood as complex, evolving systems.Through clear explanations and targeted applications, it not only demonstrates how ABM can capture the effects of macroprudential regulation on the real economy and inequality and she