Working Paper: NBER ID: w17006
Authors: Leonard Nakamura
Abstract: This paper sets forth a discussion framework for the information requirements of systemic financial regulation. It specifically describes a potentially large macro-micro database for the U.S. based on an extended version of the Flow of Funds. I argue that such a database would have been of material value to U.S. regulators in ameliorating the recent financial crisis and could be of aid in understanding the potential vulnerabilities of an innovative financial system in the future. I also suggest that making these data available to the academic research community, under strict confidentiality restrictions, would enhance the detection and measurement of systemic risk.
Keywords: No keywords provided
JEL Codes: G28
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| macromicro financial database (E44) | better detection of systemic risks (E44) |
| better detection of systemic risks (E44) | mitigate crises (H12) |
| macromicro financial database (E44) | reduce opacity in institutional portfolios (G23) |
| reduce opacity in institutional portfolios (G23) | increase regulatory oversight (G18) |
| macromicro financial database (E44) | more effective response to emerging crises (H12) |
| macromicro financial database (E44) | facilitate observation of counterparty risks (G33) |
| facilitate observation of counterparty risks (G33) | enhance overall stability of the financial system (G28) |
| macromicro financial database (E44) | enable regular systemic stress testing (E63) |