Related papers: Quantitative easing is an incomplete strategy that…
The concept of quantization consists in replacing commutative quantities by noncommutative ones. In mathematical language an algebra of continuous functions on a locally compact topological space is replaced with a noncommutative…
A digital currency is money in a digital form. In this model, maintaining integrity of the supply is a core concern, therefore protections against double-spending are often at the heart of a secure digital money scheme. Quantum money…
The notion that an independent central bank reduces a country's inflation is a controversial hypothesis. To date, it has not been possible to satisfactorily answer this question because the complex macroeconomic structure that gives rise to…
Four radical ideas are presented. First, that the rationale for cancellation of principal can be modified in modern banking. Second, that non-cancellation of loan principal upon payment may cure an old problem of maintenance of positive…
The instability of the financial system as experienced in recent years and in previous periods is often linked to credit defaults, i.e., to the failure of obligors to make promised payments. Given the large number of credit contracts, this…
The monetary transmission channel is disrupted by many factors, especially securitization and liquidity traps. In our study we try to estimate the effect of securitization on the interest elasticity and to identify if a liquidity trap…
The scale and terms of aggregate borrowing in an economy depend on the manner in which wealth is distributed across potential creditors with heterogeneous beliefs about the future. This distribution evolves over time as uncertainty is…
We develop a collection of methods for adjusting the predictions of quantile regression to ensure coverage. Our methods are model agnostic and can be used to correct for high-dimensional overfitting bias with only minimal assumptions.…
Economic growth is unpredictable unless demand is quantified. We solve this problem by introducing the demand for unpaid spare time and a user quantity named human capacity. It organizes and amplifies spare time required for enjoying…
A debt swap is an elementary edge swap in a directed, weighted graph, where two edges with the same weight swap their targets. Debt swaps are a natural and appealing operation in financial networks, in which nodes are banks and edges…
We extend the idea of assisted inflation to the case of power-law potentials and demonstrate the simultaneous resolution of two major problems that plague chaotic inflation. The implementation of the same idea in the framework of a…
Present treatments of eternal inflation regulate infinities by imposing a geometric cutoff. We point out that some matter systems reach the cutoff in finite time. This implies a nonzero probability for a novel type of catastrophe. According…
Classic inflation, the theory described in textbooks, is based on the idea that, beginning from typical initial conditions and assuming a simple inflaton potential with a minimum of fine-tuning, inflation can create exponentially large…
The money supply is endogenous if the monetary policy strategy is the so called Inflation and Interest Rate Targeting, IRT. With that and perfect credibility, the theory of the price level and inflation only needs the Fisher equation, but…
We consider a government that aims at reducing the debt-to-gross domestic product (GDP) ratio of a country. The government observes the level of the debt-to-GDP ratio and an indicator of the state of the economy, but does not directly…
The equity risk premium puzzle is that the return on equities has far exceeded the average return on short-term risk-free debt and cannot be explained by conventional representative-agent consumption based equilibrium models. We review a…
When allocating indivisible resources or tasks, an envy-free allocation or equitable allocation may not exist. We present a sufficient condition and an algorithm to achieve envy-freeness and equitability when monetary transfers are allowed.…
Higher-form flux that extends in all 3+1 dimensions of spacetime is a source of positive vacuum energy that can drive meta-stable eternal inflation. If the flux also threads compact extra dimensions, the spontaneous nucleation of a bubble…
We consider curved space quantum corrections to the equations of motion of the inflaton field in the early Universe. Using the stochastic formalism in phase space, we demonstrate that the quantum corrected evolution of the inflaton can…
When Inflation is embedded in a fundamental theory, such as string theory, it typically begins when the Universe is already substantially larger than the fundamental scale [such as the one defined by the string length scale]. This is…