The Shifts and the Shocks

The Shifts and the Shocks

Written with all the intellectual command and trenchant judgment that have made Martin Wolf one of the world’s most influential economic com­mentators, The Shifts and the Shocks matches impressive analysis with no-holds-barred ...

Author: Martin Wolf

Publisher: Penguin

ISBN: 9780143127635

Category: Business & Economics

Page: 528

View: 416

From the chief economic commentator for the Financial Times—a brilliant tour d’horizon of the new global economy There have been many books that have sought to explain the causes and courses of the financial and economic crisis that began in 2007. The Shifts and the Shocks is not another detailed history of the crisis but is the most persuasive and complete account yet published of what the crisis should teach us about modern economies and econom­ics. Written with all the intellectual command and trenchant judgment that have made Martin Wolf one of the world’s most influential economic com­mentators, The Shifts and the Shocks matches impressive analysis with no-holds-barred criti­cism and persuasive prescription for a more stable future. It is a book no one with an interest in global affairs will want to neglect.
Categories: Business & Economics

The Shifts and the Shocks

The Shifts and the Shocks

Both these lie at the heart of Martin Wolf's analysis of the causes of the crisis and of his proposals to reduce the risk of another crisis. For these two reasons this is an important book that will be influential.

Author: Martin Wolf

Publisher: Penguin UK

ISBN: 9780718197971

Category: Business & Economics

Page: 528

View: 419

In The Shifts and the Shocks, Martin Wolf - one of the world's most influential economic commentators and author of Why Globalization Works - presents his controversial and highly original analysis of the economic course of the last seven years There have been many books that have sought to explain the causes and courses of the financial and economic crisis which began in 2007-8. The Shifts and the Shocks is not another detailed history of the crisis, but the most persuasive and complete account yet published of what the crisis should teach us us about modern economies and economics. The book identifies the origin of the crisis in the complex interaction between globalization, hugely destabilizing global imbalances and our dangerously fragile financial system. In the eurozone, these sources of instability were multiplied by the tragically defective architecture of the monetary union. It also shows how much of the orthodoxy that shaped monetary and financial policy before the crisis occurred was complacent and wrong. In doing so, it mercilessly reveals the failures of the financial, political and intellectual elites who ran the system. The book also examines what has been done to reform the financial and monetary systems since the worst of the crisis passed. 'Are we now on a sustainable course?' Wolf asks. 'The answer is no.' He explains with great clarity why 'further crises seem certain' and why the management of the eurozone in particular 'guarantees a huge political crisis at some point in the future.' Wolf provides far more ambitious and comprehensive plans for reform than any currently being implemented. Written with all the intellectual command and trenchant judgement that have made Martin Wolf one of the world's most influential economic commentators, The Shifts and the Shocks matches impressive analysis with no-holds-barred criticism and persuasive prescription for a more stable future. It is a book no-one with an interest in global affairs will want to neglect. MARTIN WOLF is Associate Editor and Chief Economics Commentator at the Financial Times, London. He is the recipient of many awards for financial journalism, for which he was also made a CBE in 2000. His previous books include Why Globalization Works and Fixing Global Finance. "We have been inundated with books about the 'financial' aspects of the crisis. There have also been many books about specific institutions or memoirs by retired policy-makers. We need something different. There are two dimensions of the crisis that have received surprisingly little treatment. One is the link between developments in the macro-economy and the behaviour of the financial sector. The other is the global dimension of the crisis. Both these lie at the heart of Martin Wolf's analysis of the causes of the crisis and of his proposals to reduce the risk of another crisis. For these two reasons this is an important book that will be influential. Most important of all, it is in my view the right analysis and remedy" Mervyn King "To think straight about the causes and solutions of the financial crisis we must reject orthodox assumptions that more finance and global financial integration are limitlessly beneficial. The Shifts and the Shocks does just that, providing an intellectually sparkling and vital account of why the crisis occurred, and of the radical reforms needed if we are to avoid a future repeat" Adair Turner "Martin Wolf is unsurpassed in the world of economic journalists. His superb book may be the best of all those spawned by the Great Recession. It is analytical and rigorous without ever succumbing to fatalism or complacency" Lawrence Summers
Categories: Business & Economics

Changing Times

Changing Times

Wolf, The Shifts and the Shocks, p. 22; King, End of Alchemy, p. 37. 7 Independent Commission on Banking, Final Report; Shin, 'Reflections on Northern Rock. * Wolf, The Shifts and the Shocks, p. 26; Turner, Banking in Crisis, p. 96.

Author: Martin Chick

Publisher: Oxford University Press

ISBN: 9780192588487

Category: History

Page: 432

View: 414

This is a study of how, and why, the British economy has changed since 1951. It covers the Golden Age of 1945-1973 when unemployment was below one million; when governments built millions of council houses and flats; when electricity, telephones, and gas were supplied by nationalised monopolies; when income and wealth inequality were narrowing; and when the UK was not a member of the European Economic Community. Moving through the inflation, rising unemployment, and rapid contraction of the manufacturing industry from the mid- 1970s, Changing Times examines the transfer of assets which was effected in the privatisation of public housing and nationalised industries from the early 1980s. The role of the State changed as public investment fell. The financing of old-age care, of state pensions, and of the National Health Service became of increasing concern and were less politically amenable to the approach of using private finance (the Private Finance Initiative and tuition fees) to fund former public obligations. Changes were made to the system of taxation, but public expenditure changed little as a share of national income, although the government now built little. Difficulties emerged in ensuring adequate housing for a growing population, and uncertainty grew as to where future investment in necessities like electricity supply would come from. Having narrowed in the Golden Age, inequality of income and wealth widened. Environmental concerns also grew, from the local smogs of the 1950s, through the concern with acid rain from the 1960s, to the current global concern with climate change. The financial crash of 2008 and the decision to 'Brexit' in the referendum of 2016 reduced economic growth and highlighted the extent of economic change since 1951. This is a study of that change.
Categories: History

Ever Closer Union

Ever Closer Union

... Martin Wolf's The Shifts and the Shocks (2014).82 Neither Johnson, former chief economist at the IMF, nor Wolf, columnist and leader-writer for the Financial Times, would think of themselves as connected to a left, however liberal.

Author: Perry Anderson

Publisher: Verso Books

ISBN: 9781839764431

Category: Political Science

Page: 272

View: 616

The European Union is a political order of peculiar stamp and continental scope, its polity of 446 million the third largest on the planet, though with famously little purchase on the conduct of its representatives. Sixty years after the founding treaty, what sort of structure has crystallised, and does the promise of ever closer union still obtain? Against the self-image of the bloc, Perry Anderson poses the historical record of its assembly. He traces the wider arc of European history, from First World War to Eurozone crisis, the hegemony of Versailles to that of Maastricht, and casts the work of the EU’s leading contemporary analysts – both independent critics and court philosophers – in older traditions of political thought. Are there likenesses to the age of Metternich, lessons in statecraft from that of Machiavelli? An excursus on the UK’s jarring departure from the Union considers the responses it has met with inside the country’s intelligentsia, from the contrite to the incandescent. How do Brussels and Westminster compare as constitutional forms? Differently put, which could be said to be worse?
Categories: Political Science

Can We Avoid Another Financial Crisis

Can We Avoid Another Financial Crisis

Smets, F. & Wouters, R. (2007) Shocks and Frictions in US Business Cycles: A Bayesian DSGE Approach. American Economic Review, 97, 586–606. ... Wolf, M. (2014) The Shifts and the Shocks, London: Penguin. Wray, L. R. (2003) Functional ...

Author: Steve Keen

Publisher: John Wiley & Sons

ISBN: 9781509513765

Category: Political Science

Page: 140

View: 214

The Great Financial Crash had cataclysmic effects on the global economy, and took conventional economists completely by surprise. Many leading commentators declared shortly before the crisis that the magical recipe for eternal stability had been found. Less than a year later, the biggest economic crisis since the Great Depression erupted. In this explosive book, Steve Keen, one of the very few economists who anticipated the crash, shows why the self-declared experts were wrong and how ever–rising levels of private debt make another financial crisis almost inevitable unless politicians tackle the real dynamics causing financial instability. He also identifies the economies that have become 'The Walking Dead of Debt', and those that are next in line – including Australia, Belgium, China, Canada and South Korea. A major intervention by a fearlessly iconoclastic figure, this book is essential reading for anyone who wants to understand the true nature of the global economic system.
Categories: Political Science

Fighting Europe s Unemployment in the 1990s

Fighting Europe   s Unemployment in the 1990s

4 Structural Mismatch A last possibility is that U-V curve shifts are the result of structural shocks. Structural (reallocation) shocks shift the Beveridge curve outward. More structural problems also mean that inflationary pressures ...

Author: Herbert Giersch

Publisher: Springer Science & Business Media

ISBN: 9783642611346

Category: Political Science

Page: 240

View: 216

Following the five books listed above on an earlier page, the Egon Sohmen-Foundation herewith submits its sixth volume. Once again, it is a collection of academic papers that were discussed at a symposium sponsored by the Foundation and subsequently revised. Readers not familiar with the Foundation may be interested to know that it was established in 1987 by Helmut Sohmen of Hong Kong in memory of his late brother, Egon Sohmen (1930-1977). Egon Soh men was an international economist highly respected in North America and in Europe, notably for his work on flexible exchange rates and on the economics of allocation and competition. Born in Linz (Austria) and educated as an economist in Vienna, Tiibingen, and Cambridge, Mass., Egon Sohmen held teaching posts in several places (M.I.T., Yale, Frankfurt, Saarbriicken, Minnesota, and Heidelberg). As an active participant in numerous international con ferences and workshops, he truly belonged to the international research community of his time and age cohort. His lasting reputation greatly helped me to convene the active participants of this symposium.
Categories: Political Science

Coping with shocks and shifts the multilateral trading system in historical perspective

Coping with shocks and shifts   the multilateral trading system in historical perspective

This paper provides a historical look at how the multilateral trading system has coped with the challenge of shocks and shifts.

Author: Douglas A. Irwin

Publisher:

ISBN: OCLC:762075699

Category: Economics

Page: 39

View: 332

This paper provides a historical look at how the multilateral trading system has coped with the challenge of shocks and shifts. By shocks we mean sudden jolts to the world economy in the form of financial crises and deep recessions, or wars and political conflicts. By shifts we mean slow-moving, long-term changes in comparative advantage or shifts in the geopolitical equilibrium that force economies to undergo disruptive and potentially painful adjustments. We conclude that most shocks (financial crises and regional wars) have had relatively little effect on trade policy, but that shifts pose a greater challenge to the system of open, multilateral trade.
Categories: Economics

Monetary Economics

Monetary Economics

Similarly, a negative shock, occurring, say, in the following period, which shifts the IS curve to IS2,will ... Figure 10.1 Shocks arising from the money market Now assume that the exogenous shocks arise only in the money market while ...

Author: Jagdish Handa

Publisher: Routledge

ISBN: 9781135981839

Category: Business & Economics

Page: 872

View: 360

This successful text, now in its second edition, offers the most comprehensive overview of monetary economics and monetary policy currently available. It covers the microeconomic, macroeconomic and monetary policy components of the field. Major features of the new edition include: Stylised facts on money demand and supply, and the relationships between monetary policy, inflation, output and unemployment in the economy. Theories on money demand and supply, including precautionary and buffer stock models, and monetary aggregation. Cross-country comparison of central banking and monetary policy in the US, UK and Canada, as well as consideration of the special features of developing countries. Monetary growth theory and the distinct roles of money and financial institutions in economic growth in promoting endogenous growth. This book will be of interest to teachers and students of monetary economics, money and banking, macroeconomics and monetary policy.
Categories: Business & Economics

A Retrospective on the Bretton Woods System

A Retrospective on the Bretton Woods System

An increase in the variance of domestic real shocks (that for given voters' preferences raises b*) shifts the indifference locus upward: the shift in preferences must be larger to justify abandoning the home central banker, ...

Author: Michael D. Bordo

Publisher: University of Chicago Press

ISBN: 9780226066905

Category: Business & Economics

Page: 690

View: 695

At the close of the Second World War, when industrialized nations faced serious trade and financial imbalances, delegates from forty-four countries met in Bretton Woods, New Hampshire, in order to reconstruct the international monetary system. In this volume, three generations of scholars and policy makers, some of whom participated in the 1944 conference, consider how the Bretton Woods System contributed to unprecedented economic stability and rapid growth for 25 years and discuss the problems that plagued the system and led to its eventual collapse in 1971. The contributors explore adjustment, liquidity, and transmission under the System; the way it affected developing countries; and the role of the International Monetary Fund in maintaining a stable rate. The authors examine the reasons for the System's success and eventual collapse, compare it to subsequent monetary regimes, such as the European Monetary System, and address the possibility of a new fixed exchange rate for today's world.
Categories: Business & Economics

The Business Cycle Theories and Evidence

The Business Cycle  Theories and Evidence

attention is given to shifts in preferences and desired consumption (Hall, 1986). One study singles out sectoral demand shifts (Lilien, 1982), another oil price shocks (Hamilton, 1983). The role of shocks to, and imperfections of, ...

Author: M.T. Belongia

Publisher: Springer Science & Business Media

ISBN: 9789401129565

Category: Business & Economics

Page: 209

View: 226

These proceedings, from a conference held at the Federal Reserve Bank of St. Louis on October 17-18, 1991, attempted to layout what we currently know about aggregate economic fluctuations. Identifying what we know inevitably reveals what we do not know about such fluctuations as well. From the vantage point of where the conference's participants view our current understanding to be, these proceedings can be seen as suggesting an agenda for further research. The conference was divided into five sections. It began with the formu lation of an empirical definition of the "business cycle" and a recitation of the stylized facts that must be explained by any theory that purports to capture the business cycle's essence. After outlining the historical develop ment and key features of the current "theories" of business cycles, the conference evaluated these theories on the basis of their ability to explain the facts. Included in this evaluation was a discussion of whether (and how) the competing theories could be distinguished empirically. The conference then examined the implications for policy of what is known and not known about business cycles. A panel discussion closed the conference, high lighting important unresolved theoretical and empirical issues that should be taken up in future business cycle research. What Is a Business Cycle? Before gaining a genuine understanding of business cycles, economists must agree and be clear about what they mean when they refer to the cycle.
Categories: Business & Economics

Control Methods in PDE Dynamical Systems

Control Methods in PDE Dynamical Systems

Call i, a £2(t–), is a 3:6 (t–) the speeds of the incoming shocks at the interaction time, and let & = §a (T-), š + £6(7–) be their shifts. In the perturbed solution wo, the shock interaction will take place at the point (see fig.

Author: Fabio Ancona

Publisher: American Mathematical Soc.

ISBN: 9780821837665

Category: Mathematics

Page: 404

View: 622

While rooted in controlled PDE systems, this 2005 AMS-IMS-SIAM Summer Research Conference sought to reach out to a rather distinct, yet scientifically related, research community in mathematics interested in PDE-based dynamical systems. Indeed, this community is also involved in the study of dynamical properties and asymptotic long-time behavior (in particular, stability) of PDE-mixed problems. It was the editors' conviction that the time had become ripe and the circumstances propitious for these two mathematical communities--that of PDE control and optimization theorists and that of dynamical specialists--to come together in order to share recent advances and breakthroughs in their respective disciplines. This conviction was further buttressed by recent discoveries that certain energy methods, initially devised for control-theoretic a-priori estimates, once combined with dynamical systems techniques, yield wholly new asymptotic results on well-established, nonlinear PDE systems, particularly hyperbolic and Petrowski-type PDEs. These expectations are now particularly well reflected in the contributions to this volume, which involve nonlinear parabolic, as well as hyperbolic, equations and their attractors; aero-elasticity, elastic systems; Euler-Korteweg models; thin-film equations; Schrodinger equations; beam equations; etc. In addition, the static topics of Helmholtz and Morrey potentials are also prominently featured. A special component of the present volume focuses on hyperbolic conservation laws, to take advantage of recent theoretical advances with significant implications also on applied problems. In all these areas, the reader will find state-of-the-art accounts as stimulating starting points for further research.
Categories: Mathematics

World Economic Outlook May 1999

World Economic Outlook  May 1999

Therefore the economic shocks that shifted the DL schedule downward were followed by a slump in investment , caused by the adjustment of the capital stock to its new equilibrium ( optimal ) value . This entailed a gradual downward shift ...

Author: International Monetary Fund. Research Dept.

Publisher: International Monetary Fund

ISBN: 1557758093

Category: Business & Economics

Page: 234

View: 441

The World Economic Outlook, published twice a year in English, French, Spanish, and Arabic, presents IMF staff economists analyses of global economic developments during the near and medium term. Chapters give an overview of the world economy; consider issues affecting industrial countries, developing countries, and economies in transition to market; and address topics of pressing current interest. Annexes, boxes, charts, and an extensive statistical appendix augment the text.
Categories: Business & Economics

Planning Local Economic Development

Planning Local Economic Development

Demand for certain goods and services that make up the national economy can temporarily shift due to shocks such as energy price increases, natural disasters, or supply bottlenecks. Since the national economy is made up of all ...

Author: Nancey Green Leigh

Publisher: SAGE Publications

ISBN: 9781506363981

Category: Business & Economics

Page: 536

View: 173

Written by authors with years of academic, regional, and city planning experience, the classic Planning Local Economic Development has laid the foundation for practitioners and academics working in planning and policy development for generations. With deeper coverage of sustainability and resiliency, the new Sixth Edition explores the theories of local economic development while addressing the issues and opportunities faced by cities, towns, and local entities in crafting their economic destinies within the global economy. Nancey Green Leigh and Edward J. Blakely provide a thoroughly up-to-date exploration of planning processes, analytical techniques and data, and locality, business, and human resource development, as well as advanced technology and sustainable economic development strategies.
Categories: Business & Economics

Crises

Crises

A coordination game with incomplete information is played through time.

Author: Stephen E. Morris

Publisher:

ISBN: OCLC:968326044

Category: Equilibrium (Economics)

Page: 38

View: 712

A coordination game with incomplete information is played through time. In each period, payoffs depend on a fundamental state and an additional idiosyncratic shock. Fundamentals evolve according to a random walk where the changes in fundamentals (namely common shocks) have a fat tailed distribution. We show that majority play shifts either if fundamentals reach a critical threshold or if there are large common shocks, even before the threshold is reached. The fat tails assumption matters because it implies that large shocks make players more unsure about whether their payoffs are higher than others. This feature is necessary for large shocks to matter.
Categories: Equilibrium (Economics)

Global Shocks

Global Shocks

This book, which is written from a practitioner’s perspective, fills the void by providing the reader with a toolkit and guiding principles to manage money when markets are in turmoil.

Author: Nicholas P. Sargen

Publisher: Springer

ISBN: 9783319411057

Category: Business & Economics

Page: 192

View: 764

This book, which is written from a practitioner’s perspective, fills the void by providing the reader with a toolkit and guiding principles to manage money when markets are in turmoil. It features ten case studies beginning with the breakdown of the Bretton Woods fixed exchange rate system through the current situation in which investors are assessing whether China could become the next bubble. Each chapter discusses how the respective crisis or bubble unfolded at the time, the way policymakers and markets responded, and the optimal strategy for positioning portfolios. The goal is to share these experiences and the lessons from them, so investors will be better prepared for future shocks. The opening chapter explores whether there are common patterns in movements of interest rates and exchange rates that investors can exploit. A conceptual framework is presented that helps explain why this is the case for traditional currency crises, but less so for asset bubbles. The concluding chapter ties the episodes together and considers how the nature of financial crises has evolved since the collapse of Bretton Woods. We cite factors that make it difficult for policymakers and investors to detect problems in advance of an asset bubble. The good news is investors get a second chance to outperform when markets are over-sold; however, they need to formulate a strategy to limit the damage during the sell-off phase and to capitalize on the eventual recovery.
Categories: Business & Economics

Governing Failure

Governing Failure

Assessing poor countries' vulnerability to shocks Once institutional actors began to see the world as a less ... Understanding the shift Why the increased interest in the effects of global economic shocks on low-income countries?

Author: Jacqueline Best

Publisher: Cambridge University Press

ISBN: 9781107729452

Category: Political Science

Page: 312

View: 220

Jacqueline Best argues that the 1990s changes in IMF, World Bank and donor policies, towards what some have called the 'Post-Washington Consensus,' were driven by an erosion of expert authority and an increasing preoccupation with policy failure. Failures such as the Asian financial crisis and the decades of despair in sub-Saharan Africa led these institutions to develop governance strategies designed to avoid failure: fostering country ownership, developing global standards, managing risk and vulnerability and measuring results. In contrast to the structural adjustment era when policymakers were confident in their solutions, this is an era of provisional governance, in which key actors are aware of the possibility of failure even as they seek to inoculate themselves against it. Best considers the implications of this shift, asking if it is a positive change and whether it is sustainable. This title is available as Open Access on Cambridge Books Online and via Knowledge Unlatched.
Categories: Political Science

Principles of macroeconomics

Principles of macroeconomics

Shocks. demand shock: a shift in one of the components of aggregate demand that leads to a shift in the aggregate ... However, shifts in the aggregate demand curve are not the only things that can push real GDP away from potential GDP.

Author: John B. Taylor

Publisher: Houghton Mifflin College Div

ISBN: 0618230033

Category: Business & Economics

Page: 448

View: 329

For a full description, see catalog entry for Taylor, Economics 4/e.
Categories: Business & Economics

The Service Productivity and Quality Challenge

The Service Productivity and Quality Challenge

In section 3, we present a two-sector model that provides an analytic framework for analyzing sectoral shifts in employment shares. ... These larger monetary shocks could offset the stabilizing influence of the mix shift.

Author: P.T. Harker

Publisher: Springer Science & Business Media

ISBN: 9789401100731

Category: Business & Economics

Page: 509

View: 309

3 While all of these explanations seem to have merit, there is one dominant reason why the percentage of GDP and employment dedicated to services has continued to increase: low productivity. According to Baumol's cost disease hypothesis (Baumol, Blackman, and Wolff 1991), the growth in services is actually an illusion. The fact is that service-sector productivity is improving slower than that of manufacturing and thus, it seems as if we are consuming more services in nominal terms. However, in real terms, we are consuming slightly less services. That is, the increase in the service sector is caused by low productivity relative to manufacturing. The implication of Baumol's cost disease is the following. Assuming historical productivity increases for manufacturing, agriCUlture, education and health care, Baumol (1992) shows that the U. S. can triple its output in all sectors within 50 years. However, due to the higher productivity level for manufacturing and agriculture, it will take substantially more employment in services to achieve this increase in output. To put this argument in perspective, simply roll back the clock 100 years or so and replace the words manufacturing with agriculture, and services with manufacturing. The phenomenal growth in agricultural productivity versus manufacturing caused the employment levels in agriculture in the U. S. to decrease rapidly while producing a truly unbelievable amount of food. It is the low productivity of services that is the real culprit in its growth of GDP and employment share.
Categories: Business & Economics

Globalization in an Age of Crisis

Globalization in an Age of Crisis

1.4 Responding to Shocks and Shifts This sketch of the broad contours of the world trading system in the past gives us a sense of the strengths and weaknesses of various arrangements. We now turn to how each period has responded to the ...

Author: Robert C. Feenstra

Publisher: University of Chicago Press

ISBN: 9780226030890

Category: Business & Economics

Page: 464

View: 705

Along with its painful economic costs, the financial crisis of 2008 raised concerns over the future of international policy making. As in recessions past, new policy initiatives emerged, approaches that placed greater importance on protecting national interests than promoting international economic cooperation. Whether in fiscal or monetary policies, the control of currencies and capital flows, the regulation of finance, or the implementation of protectionist policies and barriers to trade, there has been an almost worldwide trend toward the prioritizing of national economic security. But what are the underlying economic causes of this trend, and what can economic research reveal about the possible consequences? Prompted by these questions, Robert C. Feenstra and Alan M. Taylor have brought together top researchers with policy makers and practitioners whose contributions consider the ways in which the global economic order might address the challenges of globalization that have arisen over the last two decades and that have been intensified by the recent crisis. Chapters in this volume consider the critical linkages between issues, including exchange rates, global imbalances, and financial regulation, and plumb the political and economic outcomes of past policies for what they might tell us about the future of the global economic cooperation.
Categories: Business & Economics

The Generation of Business Fluctuations

The Generation of Business Fluctuations

Uncertainty and risk - aversion shift firms ' supply curves to the left and this allows to explain three facts that puzzle traditional economists : first , the transmission and the persistence of small idiosyncratic shocks , since the ...

Author: Corrado Di Guilmi

Publisher: Peter Lang

ISBN: 363158119X

Category: Business & Economics

Page: 149

View: 374

The limits imposed on economic modeling by the representative agent hypothesis have prevented dynamic analysis from fully exploring the links between the micro and macro level of the economic system. This book presents developments and applications of the innovative techniques of dynamic stochastic aggregation, first proposed by Masanao Aoki, through an implementation in a New Keynesian financial fragility framework. The introduction in macroeconomics of statistical mechanics tools, such as mean-field interaction, statistical entropy and master equation, constitutes a step toward a new definition of microfoundation and allows an integrated modeling of the relationships between micro financial variables and aggregate indicators.
Categories: Business & Economics