Increase In Interconnectedness Research Articles

Connectedness between Sustainable Investment Indexes: The QVAR Approach

We studied the relationship between sustainable investment indexes and examine whether this relationship varies in bullish, bearish, and stable financial markets. To understand this issue more deeply, we analyzed the connectedness between three indexes—the Sustainable Impact investments, Paris-aligned stocks, and green bonds indexes—using the daily closing prices from 1 June 2017 to 15 April 2024, encompassing 1793 observations. We used a quantile vector autoregressive (QVAR) model to understand the dynamic relationship among the considered indices. The findings indicate that sustainable investments are strongly interconnected in both high and low quantiles, but this connection weakens significantly during periods of market stability. The Sustainable Impact investments and Paris-aligned stocks indexes are net transmitters of impacts to other sustainable alternatives, while the green bonds index is a net receiver. We also observed an increase in interconnectedness across all quantiles during the pandemic, the Russia–Ukraine military conflict, and changes in the European Union and the United States’ monetary policies.

Tail Risk in Production Networks

This paper describes the response of the economy to large shocks in a nonlinear production network. A sector's tail centrality measures how a large negative shock transmits to GDP, that is, the systemic risk of the sector. Tail centrality is theoretically and empirically very different from local centrality measures such as sales share—in a benchmark case, it is measured as a sector's average downstream closeness to final production. It also measures how large differences in sector productivity can generate cross‐country income differences. The paper also uses the results to analyze the determinants of total tail risk in the economy. Increases in interconnectedness can simultaneously reduce the sensitivity of the economy to small shocks while increasing the sensitivity to large shocks. Tail risk is related to conditional granularity, where some sectors become highly influential following negative shocks.

Considerations for acute care staffing during a pandemic.

The increase in interconnectedness of the global population has enabled a highly transmissible virus to spread rapidly around the globe in 2020. The COVID-19 (Coronavirus Disease 2019) pandemic has led to physical, social, and economic repercussions of previously unseen proportions. Although recommendations for pandemic preparedness have been published in response to previous viral disease outbreaks, these guidelines are primarily based on expert opinion and few of them focus on acute care staffing issues. In this review, we discuss how working in acute care medicine during a pandemic can affect the physical and mental health of medical and nursing staff. We provide ideas for limiting staff shortages and creating surge capacity in acute care settings, and strategies for sustainability that can help hospitals maintain adequate staffing throughout their pandemic response.

The changing network of financial market linkages: The Asian experience

We investigate the changing integration of Asian financial markets within the global financial network from 1995 to 2016, incorporating the direction of links between markets, the significance of these links, and their strength. Emphasis is placed on the transition of the networks before and after the Asian financial crisis of 1997–1998 and the global financial crisis of 2008–2009. The results reveal a general deepening of the connections of the Asian market with the rest of the world over the past two decades. The analysis demonstrates the increase in interconnectedness during periods of stress and the fall in the number of links in post-crisis periods. Moreover, many of these markets have transitioned from being primarily linked to the global markets via key bridge markets (such as Hong Kong) and over time developed stronger direct links with external markets. These findings highlight the potential importance of key geographical nodes in allowing emerging markets access to the international financial network.

Interconnectedness and systemic risk: A comparative study based on systemically important regions

We apply a novel technique to identify systemically important regions (SIRs) in a global network that shows a reduced degree of concentration and the development of a multi-centered structure. We observe that when a region is more connected to other regions, it is exposed to a higher level of systemic risk. This condition holds even more strongly for non-systemically important regions. However, for SIRs, interconnectedness is not significantly associated with systemic risk. Our empirical evidence suggests that an increase in interconnectedness at the regional level, together with a decrease in interconnectedness for a single pivotal center, may reduce the aggregate systemic risk at the global level.

Interconnectedness in the interbank market

We study the behavior of the interbank market around the 2008 financial crisis. Using network analysis, we study two network structures, correlation networks based on publicly traded bank returns and physical networks based on interbank lending transactions, among these public and also private banks. While the two networks behave similarly pre-crisis, during the crisis the correlation network shows an increase in interconnectedness, while the physical network highlights a marked decrease in interconnectedness. Moreover, these networks respond differently to monetary and macroeconomic shocks. Physical networks forecast liquidity problems, while correlation networks forecast financial crises.

Interconnectedness in the Interbank Market

Abstract We study the behavior of the interbank market around the 2008 financial crisis. Using network analysis, we study two network structures, correlation networks based on publicly traded bank returns and physical networks based on interbank lending transactions, among these public and also private banks. While the two networks behave similarly pre-crisis, during the crisis the correlation network shows an increase in interconnectedness, while the physical network highlights a marked decrease in interconnectedness. Moreover, these networks respond differently to monetary and macroeconomic shocks. Physical networks forecast liquidity problems, while correlation networks forecast financial crises.

The Changing Network of Financial Market Linkages: The Asian Experience

Recent international financial crises highlight the advantages of understanding the global financial system as a network of economies in which cross-border financial linkages are fundamental to the spread of systemic risk. We investigate the changing network of financial markets for six periods from 1995–2016, constructing a network that captures the concepts of the direction of links between markets, the significance of these links, and their strength. Emphasis is placed on the transition of the networks before and after the Asian financial crisis of 1997–1998 and the global financial crisis of 2008–2009. The analysis demonstrates the increase in interconnectedness during periods of stress and the fall in the number of links in post-crisis periods. At the same time, the results reveal a general deepening of the connections of the Asian market with the rest of the world over the past 2 decades. They also suggest that many of these markets have transitioned from being primarily linked to developed non-Asian markets through key bridge markets (such as Hong Kong, China) to developing stronger direct links with these external markets, highlighting the importance of key geographical nodes in market development.

Interconnectedness in the Interbank Market

We study the behavior of the interbank market before, during and after the 2008 financial crisis. Leveraging recent advances in network analysis, we study two network structures, a correlation network based on publicly traded bank returns, and a physical network based on interbank lending transactions. While the two networks behave similarly pre-crisis, during the crisis the correlation network shows an increase in interconnectedness while the physical network highlights a marked decrease in interconnectedness. Moreover, these networks respond differently to monetary and macroeconomic shocks. Physical networks forecast liquidity problems while correlation networks forecast financial crises.

The Bright and the Dark Side of Cross-Border Banking Linkages

When a country's banking system becomes more linked to the global banking network, does that system get more or less prone to a banking crisis? Using model simulations and econometric estimates based on a world-wide dataset, we find an M-shaped relationship between financial stability of a country's banking sector and its interconnectedness. In particular, for banking sectors that are not very connected to the global banking network, increases in interconnectedness are associated with a reduced probability of a banking crisis. Once interconnectedness reaches a certain value, further increases in interconnectedness can increase the probability of a banking crisis. Our findings suggest that it may be beneficial for policies to support greater interlinkages for less connected banking systems, but after a certain point the advantages of increased interconnectedness become less clear.

The Bright and the Dark Side of Cross-Border Banking Linkages

When a country’s banking system becomes more linked to the global banking network, does that system get more or less prone to a banking crisis? Using model simulations and econometric estimates based on a world-wide dataset, we find an M-shaped relationship between financial stability of a country’s banking sector and its interconnectedness. In particular, for banking sectors that are not very connected to the global banking network, increases in interconnectedness are associated with a reduced probability of a banking crisis. Once interconnectedness reaches a certain value, further increases in interconnectedness can increase the probability of a banking crisis. Our findings suggest that it may be beneficial for policies to support greater interlinkages for less connected banking systems, but after a certain point the advantages of increased interconnectedness become less clear.

Challenges for public health in the global context- prevention and surveillance

Public health is the organized eVorts made by society action to protect and promote health in this era of globalization. to prevent and control disease and promote health at the population level. Unfortunately, the practice of Globalization interacts with other important and inter-related determinants of population health status: public health has yet to ful® l its potential to improve the health of poor and disadvantaged populations demographic changes, especially population growth and the ageing of populations; global environmental (1, 2). Worldwide, there is a tremendous burden of preventable premature death and disability that is way changes; the new and old epidemics of infectious diseases; and the emerging epidemics of nonbeyond the ability of individualized health services, in even the wealthiest countries, to deal with. Many councommunicable diseases. Although there were impressive and unrivalled gains in health status worldwide in tries are overwhelmed by indebtedness, and one longterm eVect of structural readjustment processes has the twentieth century, many populations in both poor and wealthy countries still have life expectancies and been the restriction of publicly supported health services. In the long term, the only eVective and equitable disease burdens typical of European countries a century ago. The relative disparity between countries in response to the global disease burden is to emphasize and strengthen preventive programmes. For this to life expectancy has improved only a little over the last half-century and health inequalities within countries occur a strong public health capacity is required in all countries, especially the poorest; a priority is the estabare increasing (4). The fragility of recent health gains has become apparent in the face of social disruption lishment of the surveillance mechanisms that underpin all public health eVorts. as a result of economic and political disarray, as in the former Soviet Union (5), civil war, as in the former The challenges facing public health practitioners have always been great. Today, they are even more Yugoslavia, or in the face of the ravages of HIV/AIDS. A major item on the un® nished population health daunting (3). Globalization, one of the key challenges facing public health practitioners and health policy agenda is the more than one billion people whose life experiences have improved only slowly over the last makers, refers to the increasing interconnectedness of countries through cross-border ows of ideas, comhalf-century. Infectious disease epidemics, most of which are, in theory, preventable with existing knowmerce and people; the increasing openness of countries to such ows; and the development of international ledge, are of special relevance to the poorest 20% of the world’s population that lives in Sub-Saharan Africa rules and institutions dealing with these ows. The current phase of globalization, dating from the late and Asia. HIV/AIDS, for example, has the potential to reduce life expectancy at birth by 30 years in 1970s, is marked by a more rapid increase in interconnectedness and more radical changes in the internaSub-Saharan Africa (4) and has already substantially eroded life expectancy in several eastern African tional institutional framework than previous phases. A priority for public health is to strengthen national countries.