The application of Boolean Networks to systemic risk is introduced. Network architecture, connectivity, connection matrix and debt matrurity can be used in both deterministic and random networks. For mdeterminsitic networks the trajectory of the node-state vector can be obtained where it is known exactly when a specific bank defaults. For rando networks, Markow transition matrices can be derived to calculate the trajectory of the distriution function of the number of defaulted or down-graded firms. Calculations can be made for both netted and non-netted clearing system. The conenctivity which maximizes the speed of default propagation is not invariant to netting rules.
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