Events can be divided into insurable events (risk) and non-insurable events (uncertainty), depending on whether or not stochastic methods can be used to determine a probability of their occurrence. See Knight, Frank (1921). Risk, Uncertainty, and Profit. Houghton Mifflin Co. 13. For example, see https://www.imf.org/en/Publications/FM/Issues/2022/04/12/fiscal-monitor-april-2022 [https://www.imf.org/en/Publications/FM/Issues/2022/04/12/fiscal-monitor-april-2022] 14. See https://report.ipcc.ch/ar6wg3/pdf/IPCC_AR6_WGIII_SummaryForPolicymakers.pdf [https://report.ipcc.ch/ar6wg3/pdf/IPCC_AR6_WGIII_SummaryForPolicymakers.pdf] 15. For a more detailed discussion see https://www.fsb.org/2021/03/evaluation-of-the-effects-of-too-big-to-failreforms-final-report/ [https://www.fsb.org/2021/03/evaluation-of-the-effects-of-too-big-to-fail-reforms-final-report/] 16.
Recently, the European Commission proposed a debt-equity bias reduction allowance intended to reduce the current tax incentives for firms to use debt financing instead of equity financing. See https://ec.europa.eu/commission/presscorner/detail/en/IP_22_2884 [https://ec.europa.eu/commission/presscorner/detail/en/IP_22_2884] 17. For more information on financial contagion see, for example, Allen, Franklin, and Douglas Gale (2000). Financial Contagion Journal of Political Economy. 108(1): 1-33. 18.