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There is intense interest in understanding the stochastic and dynamical properties of the global Foreign Exchange (FX) market, whose daily transactions exceed one trillion US dollars. This is a formidable task since the FX market is…

Physics and Society · Physics 2009-11-11 Neil F. Johnson , Mark McDonald , Omer Suleman , Stacy Williams , Sam Howison

We consider exterior elliptic problems with coefficients stabilizing at infinity and study the critical value $\beta_{cr}$ of the coupling constant (the coefficient at the potential) that separates operators with a discrete spectrum and…

Mathematical Physics · Physics 2020-03-09 R. Puri , B. Vainberg

Recently, the notion of cryptocurrencies has come to the fore of public interest. These assets that exist only in electronic form, with no underlying value, offer the owners some protection from tracking or seizure by government or…

Mathematical Finance · Quantitative Finance 2018-05-09 Carey Caginalp

The question of the stability of unstable states of dynamical systems that do not explicitly contain a small parameter, chaos and bifurcations in them has attracted attention ever since [1-14]. This is due to the fact that this problem…

Adaptation and Self-Organizing Systems · Physics 2018-10-05 Valentin Shironosov

Intuitively, the default risk of a single borrower is higher when her or his assets and debt are denominated in different currencies. Additionally, the default dependence of borrowers with assets and debt in different currencies should be…

Risk Management · Quantitative Finance 2008-12-02 Dirk Tasche

Given a finite set of European call option prices on a single underlying, we want to know when there is a market model which is consistent with these prices. In contrast to previous studies, we allow models where the underlying trades at a…

Mathematical Finance · Quantitative Finance 2019-07-17 Stefan Gerhold , I. Cetin Gülüm

In May 2022, an apparent speculative attack, followed by market panic, led to the precipitous downfall of UST, one of the most popular stablecoins at that time. However, UST is not the only stablecoin to have been depegged in the past.…

Computer Science and Game Theory · Computer Science 2023-07-26 Yujin Kwon , Kornrapat Pongmala , Kaihua Qin , Ariah Klages-Mundt , Philipp Jovanovic , Christine Parlour , Arthur Gervais , Dawn Song

During the last two years, Europe has been facing a debt crisis, and Greece has been at its center. In response to the crisis, drastic actions have been taken, including the halving of Greek debt. Policy makers acted because interest rates…

General Finance · Quantitative Finance 2012-10-01 Marco Lagi , Yaneer Bar-Yam

Expansions in the size and scope of public procurement across the Atlantic have increased calls for accountability of democratic governments. Indefinite Delivery, Indefinite Quantity contracts by their very nature are less transparent but…

General Economics · Economics 2021-04-19 Sareesh Rawat

We propose a unifying general (i.e. not assuming the mapping to have any particular structure) view on the theory of regularity and clarify the relationships between the existing primal and dual quantitative sufficient and necessary…

Optimization and Control · Mathematics 2023-06-22 Nguyen Duy Cuong , Alexander Y. Kruger

Although classical economic theory is based on the concept of stable equilibrium, real economic systems appear to be always out of equilibrium. Indeed, they share many of the dynamical features of other complex systems, e.g., ecological…

Physics and Society · Physics 2010-11-16 Sitabhra Sinha

An important issue within the present economic crisis is understanding the dynamics of the public debt of a given country, and how the behavior of average consumers and tax payers in that country affects it. Starting from a model of the…

Economics · Quantitative Finance 2017-06-28 Roberto De Luca , Marco Di Mauro , Angelo Falzarano , Adele Naddeo

The recent argue about the existence of an instability in the definition of the mean value appearing in the Tsallis non extensive Statistical Mechanic is reconsidered. Here, it is simply underlined that the pair of probability distributions…

Statistical Mechanics · Physics 2010-10-29 Alejandro Cabo

We present an elementary analysis of the dynamical aspects of the GDP / government surplus multiplier with relevance to the assessment of a country's debt repayment policy. We show the (at first) counter intuitive result that in order to…

General Finance · Quantitative Finance 2013-10-14 Evangelos F. Magirou

A maximum entropy production principle (MEPP) has been postulated to be a criterion of stability for steady states of open systems [Martyushev et al., Phys. Rep. 426, 1 (2006)]. We find a necessary condition for stability of steady…

Classical Physics · Physics 2014-04-15 Andrea Di Vita

We consider a stochastic game between a trader and a central bank in a target zone market with a lower currency peg. This currency peg is maintained by the central bank through the generation of permanent price impact, thereby aggregating…

Mathematical Finance · Quantitative Finance 2021-02-18 Eyal Neuman , Alexander Schied

In most of the recent literature on state capacity, the significance of wars in state-building assumes that threats from foreign countries generate common interests among domestic groups, leading to larger investments in state capacity.…

General Economics · Economics 2020-12-01 Hector Galindo-Silva

Classical monetary systems regularly subject the most vulnerable majority of the world's population to debilitating financial shocks, and have manifestly allowed uncontrolled global inequality over the long term. Given these basic failures,…

Computers and Society · Computer Science 2020-03-30 Bryan Ford

The use of the fundamental constants for the definition of the most important measurement units of the International System, was considered a good solution to found it on more solid bases. From further analysis, this solution was found…

General Physics · Physics 2018-11-09 Franco Pavese

Sustainability reporting enables investors to make informed decisions and is hoped to facilitate the transition to a green economy. The European Union's taxonomy regulation enacts rules to discern sustainable activities and determine the…

General Economics · Economics 2022-06-01 Marvin Nipper , Andreas Ostermaier , Jochen Theis
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