
Strategically injecting capital into banks or forgiving debts within a financial network can maximize systemic liquidity, but finding the optimal strategies presents computational challenges.


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optimal-bailouts-and-strategic-debt-forgiveness-for-maximizing-liquidity-in-financial-networks


Optimal Bailouts and Strategic Debt Forgiveness for Maximizing Liquidity in Financial Networks


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Decentralized interbank networks, while individually optimal for banks, lead to lower overall liquidity and higher systemic risk compared to a centralized network managed by a social planner aiming to maximize total welfare.


formation-and-analysis-of-optimal-interbank-networks-under-liquidity-shocks-a-decentralized-vs-centralized-approach


Formation and Analysis of Optimal Interbank Networks under Liquidity Shocks: A Decentralized vs. Centralized Approach
