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Systemic financial risk has both internal and external drivers. So, when we focus too strongly on preventing internal crises, such as the 2008 Global Financial Crisis, we tend to miss out on the more important external risks. Five external risk factors stand out: populism, debt-driven death spirals, manufactured tensions, artificial intelligence and geopolitics. To combat these threats, the macroprudential authorities should reorient away from derisking the financial system and towards resilience and economic growth via deregulation and diversification.
