The beer. The banners. The brawl. This is an intriguing fact from the network perspective, because both PIN are dense with edge densities > 0.3, average in /out degrees well above 20 and a minimal edge weight of eth = 52 million USD during all times (see Tab. S 2 in the SI).We have seen that the build up of the GFC’08 can be well described under the PIN framework, confirming the conventional understanding, yet providing new insights from the network point of view. Two rather simple early warning indicators for potential financial crises emerge from this analysis: The algebraic connectivity of the E PIN, as a measure for structural robustness, and the edge density of the LD PIN, as a measure for the level of interdependence within the global financial system.Indicator I: the algebraic connectivity of the E PINA (hypothetical) decomposition of the E PIN is expected to lead to a global economic crisis, since it disconnects international equity markets.
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