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The Next Crisis – From Where and Are We Ready?

Paper Session

Sunday, Jan. 6, 2019 8:00 AM - 10:00 AM

Atlanta Marriott Marquis, Marquis Ballroom A
Hosted By: American Economic Association
  • Chair: Annette Vissing-Jorgensen, University of California-Berkeley

China vs. the US: IMS meets the IPS

Emmanuel Farhi
,
Harvard University
Matteo Maggiori
,
Harvard University

Abstract

TBD

Some Principles for Regulating Cyber Risk

Anil Kashyap
,
University of Chicago
Anne Wetherilt
,
Bank of England

Abstract

We explain why cyber risk differs from other operational risks. The form of cyber shocks differs because of their intent, probability of success, possibility of a hidden phase and evolving form of the risks. The impact differs because problems can spread quickly and because uncertainty over the possibility of a hidden phase can impact responses. We explain why private incentives to attend to these risks may differ from societies’ preferences and develop six (micro- and macroprudential) regulatory principles to deal with cyber risk.

JEL codes: G18; G28; L51; O33
Discussant(s)
Thomas Philippon
,
New York University
Arvind Krishnamurthy
,
Stanford University
Deborah Lucas
,
Massachusetts Institute of Technology
JEL Classifications
  • G1 - General Financial Markets
  • G2 - Financial Institutions and Services