Related papers: The affine inflation market models
The stability of the inflation rate is a necessary condition for the proper functioning of any capitalist economy. In an economic environment with volatile inflation, the growth of the economy and its distribution among the agents of…
Dynamical models of inflation are given with composite inflatons by means of massive supersymmetric gauge theory. Nearly flat directions and stable massive ones in the potential are identified and slow-roll during inflation is examined.…
Keen's model describes the dynamics between wage share, employment rate and debt ratio. In literature, the model was extended to represent the effects of inflation and also the speculative money flow. Based on the inflationary model, we…
We present a general derivation of the arbitrage-free pricing framework for multiple-currency collateralized products. We include the impact on option pricing of the policy adopted to fund in foreign currency, so that we are able to price…
Monetary inflation is a sustained increase in the money supply than can result in price inflation, which is a rise in the general level of prices of goods and services. The objectives of this paper were to develop economic models to (1)…
We consider an inflationary scenario where the rate of inflaton roll defined by $\ddot\phi/H\dot \phi$ remains constant. The rate of roll is small for slow-roll inflation, while a generic rate of roll leads to the interesting case of…
A new family of inflation models is introduced and studied. The models are characterised by a scalar potential which, far from the origin, approximates an inflationary plateau, while near the origin becomes monomial, as in chaotic…
We study a monetary version of the Keen model by merging two alternative extensions, namely the addition of a dynamic price level and the introduction of speculation. We recall and study old and new equilibria, together with their local…
We present a new inflation model in which the inflationary scenario including subsequent reheating is determined in part by a U(1)_R\times Z_n symmetry. A preinflation epoch can be introduced to yield, among other things, a running spectral…
We present the first calculation of the Bayesian evidence for different prototypical single field inflationary scenarios, including representative classes of small field and large field models. This approach allows us to compare…
This paper uses new and recently introduced mathematical techniques to undertake a data-driven study on the systemic nature of global inflation. We start by investigating country CPI inflation over the past 70 years. There, we highlight the…
A heat kernel approach is proposed for the development of a general, flexible, and mathematically tractable asset pricing framework in finite time. The pricing kernel, giving rise to the price system in an incomplete market, is modelled by…
The scalar perturbations in inflationary models, based on a two-component diagonal non-linear sigma model, are considered. For inhomogeneities generated at an inflationary stage, the law of motion of the comoving curvature ${\cal R}$ is…
Modern evolvements of the technologies have been leading to a profound influence on the financial market. The introduction of constituents like Exchange-Traded Funds, and the wide-use of advanced technologies such as algorithmic trading,…
Recent investigations have shown that inflation can be driven by four-dimensional strongly interacting theories non-minimally coupled to gravity. We explore this paradigm further by considering composite inflation driven by orientifold…
With the reform of interest rate benchmarks, interbank offered rates (IBORs) like LIBOR have been replaced by risk-free rates (RFRs), such as the Secured Overnight Financing Rate (SOFR) in the U.S. and the Euro Short-Term Rate (\euro STR)…
Local Volatility (LV) is a powerful tool for market modeling, enabling the generation of arbitrage-free scenarios calibrated to all European options. To implement LV, we need to interpolate and extrapolate option prices. This approach is…
Attention has been recently drawn towards models in which inflation and quintessence schemes are unified. In such `quintessential inflation' models, a unique scalar field is required to play both the role of the inflaton and of the…
A simple Ising spin model which can describe the mechanism of price formation in financial markets is proposed. In contrast to other agent-based models, the influence does not flow inward from the surrounding neighbors to the center site,…
To make medium- and long-term insurance products attractive, it is essential to enable participation in stock market returns. However, to eliminate downside risk, guarantees must be included, which naturally leads to the challenge of…