This tag identifies the sources of fragility that can threaten the stability of the financial system as a whole. Shadow banking, hidden interconnections, excessive leverage, risk concentration: systemic risk often emerges where no one is looking. It distinguishes isolated risk from risk liable to propagate through contagion.
Programmed scarcity is not enough to create value without demand, usage, and liquidity. An analysis of the underlying economic mechanisms. Scarcity is often presented as a guarantee of value, particularly when embedded in a protocol. This view oversimplifies the economic…
Analysis of the economic functions of money and the structural limits of crypto-assets in fulfilling them sustainably. The rapid rise of crypto-assets has fueled persistent confusion between technological innovation and economic status. Being digital, decentralized, or exchangeable is not sufficient…
Automation makes liquidity more conditional and accelerates the propagation of financial shocks. Liquidity is often perceived as abundant as long as markets function normally. In an automated environment, it becomes more conditional and more sensitive to shocks. Withdrawals can synchronize…
