The Bonsai and the Gardener: Using Flow Data to Better Assess Financial Sector Leverage

Javier Villar Burke
2013 Social Science Research Network  
This paper explains the concept of financial leverage and the risks stemming from excessive leverage. It proposes to supplement the traditional measure of leverage with a marginal leverage ratio, which would allow for a better grasp of potential risks.
doi:10.2139/ssrn.2744245 fatcat:qjcmdferr5ctvlnlxwnkocjgce