After centuries of obscurity, the study of the virtues is now one of the most prominent methodologies in ethics. Proponents of this so-called ‘aretaic turn’ differ substantially in the details of their respective proposals, but they tend to see a renewed focus on ethical virtues as a fresh source of insight into problems which have deadlocked more familiar approaches, such as Kantianism or util...

This chapter puts forward a manual for how to set up and solve a continuous time model that allows to analyze endogenous (1) level and risk dynamics. The latter includes (2) tail risk and crisis probability as well as (3) the Volatility Paradox. Concepts such as (4) illiquidity and liquidity mismatch, (5) endogenous leverage, (6) the Paradox of Prudence, (7) undercapitalized sectors (8) time-va...