17,356 research outputs found

    Diffusion of False Information During Public Crises: Analysis Based on the Cellular Automaton Method

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    The progress of false information diffusion in the public crisis is harmful to the society. When the public crisis occurs, the public respond in different ways and the public also want to tell others what they think right. But what they think is right is not recognized by the government. Thus the false information forms and it begins to diffuse. As the false information spreads, the harm to society magnifies gradually. Particularly in network society, false information diffusion can easily cause secondary hazards and accelerate public crises to a devastating degree. Thus intervening and controlling the false information diffusion is an important aspect of the public crisis management. From the perspective of the social network theory, this study analyzes the progress of false information diffusion in terms of different public crisis management strategies and presents the result of false information diffusion through simulation on cellular automaton of different public crisis management strategies. In simulations on cellular automaton, interventions are also carried to control false information diffusion and alternatives are proposed to help reduce public crises. This study also extends the theory of false information management, which is significant for the government to improve the ability to evaluate the false information and carry out interventions effectively to control the false information when it begins to diffuse

    Too-connected-to-fail Institutions and Payments System’s Stability: Assessing Challenges for Financial Authorities

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    The most recent episode of market turmoil exposed the limitations resulting from the traditional focus on too-big-to-fail institutions within an increasingly systemic-crisis-prone financial system, and encouraged the appearance of the too-connected-to-fail (TCTF) concept. The TCTF concept conveniently broadens the base of potential destabilizing institutions beyond the traditional banking-focused approach to systemic risk, but requires methodologies capable of coping with complex, cross-dependent, context-dependent and non-linear systems. After comprehensively introducing the rise of the TCTF concept, this paper presents a robust, parsimonious and powerful approach to identifying and assessing systemic risk within payments systems, and proposes some analytical routes for assessing financial authorities’ challenges. Banco de la Republica’s approach is based on a convenient mixture of network topology basics for identifying central institutions, and payments systems simulation techniques for quantifying the potential consequences of central institutions failing within Colombian large-value payments systems. Unlike econometrics or network topology alone, results consist of a rich set of quantitative outcomes that capture the complexity, cross-dependency, context-dependency and non-linearity of payments systems, but conveniently disaggregated and dollar-denominated. These outcomes and the proposed analysis provide practical information for enhanced policy and decision-making, where the ability to measure each institution’s contribution to systemic risk may assist financial authorities in their task to achieve payments system’s stability.Payments systems, too-connected-to-fail, too-big-to-fail, systemic risk, network topology, simulation, central bank liquidity. Classification JEL:E58, E44, C63, G21, D85.
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