How can graph theory be used to model financial networks?
Graph theory is a branch of mathematics that studies the properties and patterns of networks, such as nodes, edges, paths, cycles, and clusters. Financial networks are systems of interconnected entities, such as banks, firms, markets, and regulators, that exchange money, assets, information, and risks. In this article, you will learn how graph theory can help you understand and analyze the structure, dynamics, and stability of financial networks.