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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



Some Principles for Regulating Cyber Risk

Anil Kashyap
University of Chicago
Anne Wetherilt
Bank of England


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
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