Cascading Phenomena

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By José Balsa-Barreiro, Aymeric Vié, et al. :

"After the 2008 debt crisis, cascading phenomena have become a hot research topic. Not surprisingly, a substantial part of the literature in economics and finance studies is focused on understanding systemic risks and the stability within the global markets (May et al., 2008). Many studies combine disciplines such as network science and evolutionary biology to understand how seemingly stable economies become unstable at a certain point (Sugihara, 2010). Haldane and May (2011) observed a sharp transition to instability in economic networks once critical thresholds were exceeded. More recently, Bardoscia et al. (2017a) outlined the crucial role of the structure of networks for estimating systemic risks. These findings are crucial for designing methods to create robust economies and mitigate financial risks." (https://www.nature.com/articles/s41599-020-0403-x?)