Economics as energy framework: Complexity, turbulence, financial crises, and protectionism
نویسندگان
چکیده
منابع مشابه
Complexity and Crises in Financial Systems
We examine the role of macroeconomic uctuations, asset market liquidity, and network structure in determining contagion and aggregate losses in a nancial system. Systemic instability is explored in a nancial network comprising three distinct, but interconnected, sets of agents domestic banks, international nancial institutions, and rms. Calibrating the model to advanced country banking s...
متن کاملFinancial Crises and Political Crises∗
The simultaneous determination of financial default and political crises is studied in an open economy model. Political crises accompany default in equilibrium because of an information transmission conflict between the government and the public. Multiple equilibria are possible: if foreign lenders are pessimistic about the country’s stability, they demand a high interest on the debt, exacerbat...
متن کاملFinancial crises as herds: overturning the critiques
Financial crises are widely argued to be due to herd behavior. Yet recently developed models of herd behavior have been subjected to two critiques which seem to make them inapplicable to financial crises. Herds disappear from these models if two of their unappealing assumptions are modified: if their zero-one investment decisions are made continuous and if their investors are allowed to trade a...
متن کاملAppendix to "Financial Crises and Political Crises"
PBE Type i: Neither default nor political crisis If V ≤ χL, the costs of default are always larger than the costs of servicing the debt even for the benevolent government. Then in equilibrium, the government proposes to service the debt, which is accepted by the representative agent. Hence the debt is repaid and political crisis is avoided. Neither the benevolent government nor the self interes...
متن کاملPsychology, Financial Decision Making, and Financial Crises.
It is understandable that people ask how the current financial crisis could happen. As the market actors appear irrational, it is also understandable that people—lay people and experts alike—believe that psychological factors play a decisive role. Is there evidence for such a role, and what is the evidence? This monograph reviews, evaluates, and discusses research—primarily psychological resear...
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ژورنال
عنوان ژورنال: Review of Financial Economics
سال: 2015
ISSN: 1058-3300
DOI: 10.1016/j.rfe.2015.02.003