The size and the leverage of financial market investors and the elasticity of demand of unlevered investors define MinMaSS, the smallest market size that can support a given degree of leverage. The financial system’s potential for financial crises can be measured by the stability ratio, the fraction of total market size to MinMaSS. We use that financial stability metric to gauge the buildup of vulnerability in the run-up to the 1998 Long-Term Capital Management crisis and argue that policymakers could have detected the potential for the crisis.

中文翻译：

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基于杠杆的金融稳定性度量

金融市场投资者的规模和杠杆作用以及无杠杆投资者的需求弹性定义了MinMaSS，MinMaSS是可以支持给定程度杠杆作用的最小市场规模。可以通过稳定性比率（占总市场规模对MinMaSS的比率）来衡量金融系统发生金融危机的可能性。我们使用该金融稳定性指标来衡量在1998年长期资本管理危机之前的脆弱性累积情况，并认为决策者本可以检测出潜在的危机。