Getting practitioners and scholars to focus on the policy problems associated with low-probability, high-cost events can often best be done by utilizing scenario-based simulations. The Council on Foreign Relations Project on Financial Vulnerabilities conducted such an exercise in January 2000. Stress Testing the System hypothesizes a fictional scenario in which a future financial crisis originates in the United States but quickly fans out to envelop financial markets around the world. The potential impacts on the global economy, on U.S. foreign relations, and on national security are played...
Getting practitioners and scholars to focus on the policy problems associated with low-probability, high-cost events can often best be done by utilizi...
