Book Concept

I always regarded financial stability problems to be a two-step issues. In the first step, "something" happens. This "something", which can be a change in regulation, a new product, or a new practice in the financial markets, all of them can have their own short-term consequences. Typically, policy and expert commentary is concentrated on this new thing. However, in the second-step, it bring something it was not intended to bring in the long-term. That is where financial stability thinking starts...

The ability to see that second step is crucial for a proper mindset of a financial stability expert. 

We take the example of a boiling pot, when a frog gets boiled alive because it did not feel the temperature going up. Same goes with systemic risks of financial stability, when at first, not many people see it coming unless it is too late. 

In a sense, academics long coined the term of "sowing seeds for crisis", which I further discover into a new term of "crisis-planting". It is important to be able to see crisis-planting characteristics, which goes back to classics of financial economics. 

I also bring world examples and stories that help us understand the phenomenon of crisis-planting. 

Outline: 

1. What is Crisis? Classic vs Modern Definitions of Crisis

2. Chapter 2 Nilometer 

3. Chapter 3 Debt?

4. Chapter 4 Philosophy of Triangle?

5. Chapter 5 Boiling Pot

6. Chapter 6 Short Term Pain

7. Chapter 7 Solution of the Crisis