Policies believed to stabilize the financial system may actually do the opposite, study finds

(Phys.org)—Researchers have found that some of the current financial policies aimed at increasing the stability of financial networks may actually be driving them toward instability. The problem arises because these policies typically focus on the stability of individual banks—but due to the complex nature of networks, what's good for individual banks may not be good for the banking system as a whole.

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