Brexit and systemic risk

Jon Danielsson, Robert Macrae and Eva Micheler

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: Brexit is likely to cause considerable disruption for financial markets. Some worry that it may also increase systemic risk. This column revisits the debate and argues that an increase in systemic risk is unlikely. While legal ‘plumbing’ and institutional and regulatory equivalence are of concern, systemic risk is more likely to fall due to increased financial fragmentation and caution by market participants in the face of uncertainty.

JEL-codes: G32 (search for similar items in EconPapers)
Date: 2017-05-31
New Economics Papers: this item is included in nep-rmg
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Citations: View citations in EconPapers (1)

Published in VoxEU, 31, May, 2017

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Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:85124

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