Related papers: Stability in EMU
Securitization has become prevalent in many countries, and has substantial impact on government monetary policy and fiscal policy which have not yet been adequately analyzed in the existing literature. This article develops optimal…
The aim of this paper is to prove that under some conditions the modified entropy equation is stable on its one-dimensional domain.
We investigate the stability of the Epstein-Zin problem with respect to small distortions in the dynamics of the traded securities. We work in incomplete market model settings, where our parametrization of perturbations allows for joint…
A very brief history of relative valuation in neoclassical finance since 1973 is presented, with attention to core currency issues for emerging economies. Price formation is considered in the context of hierarchical causality, with…
The European day-ahead electricity market is split into multiple bidding zones with a uniform price. The increase in renewables leads to a growing number of interventions in the generation of energy sources and increasing redispatch costs.…
There is a qualitative difference between one-dimensional and multi-dimensional solutions to the Euler equations: new features that arise are vorticity and a nontrivial incompressible (low Mach number) limit. They present challenges to…
In this paper, we explore the short- and long-term stability of backed stablecoins offering constant mint and redeem prices to all agents. We refer to such designs as price window-based, since the mint and redeem prices constrain the…
This is an invited article for the Discussion and Debate special issue of The European Physical Journal Special Topics on the subject "Can Economics Be a Physical Science?" The first part of the paper traces the personal path of the author…
Necessary and sufficient criteria for metric subregularity (or calmness) of set-valued mappings between general metric or Banach spaces are treated in the framework of the theory of error bounds for a special family of extended real-valued…
World currency network constitutes one of the most complex structures that is associated with the contemporary civilization. On a way towards quantifying its characteristics we study the cross correlations in changes of the daily foreign…
This paper characterizes equilibrium properties of a broad class of economic models that allow multiple heterogeneous agents to interact in heterogeneous manners across several markets. Our key contribution is a new theorem providing…
We generalize, improve and unify theorems of Rumin, and Maassen--Uffink about classical entropies associated to quantum density matrices. These theorems refer to the classical entropies of the diagonals of a density matrix in two different…
We highlight the tension between stability and equality in non transferable utility matching. We consider many to one matchings and refer to the two sides of the market as students and schools. The latter have aligned preferences, which in…
Financial crises are a recurrent phenomenon with important effects on the real economy. The financial system is inherently fragile and it is therefore of great importance to be able to measure and characterize its systemic stability.…
On Jan. 1, 1999 the European Union introduced a common currency Euro ($EUR$), to become the legal currency in all eleven countries which form the $EUR$. In order to test the $EUR$ behavior and understand various features, the $EUR$ exchange…
We investigate the consequences of legal rulings on the conduct of monetary policy. Several unconventional monetary policy measures of the European Central Bank have come under scrutiny before national courts and the European Court of…
This paper studies the equilibrium price of a continuous time asset traded in a market with heterogeneous investors. We consider a positive mean reverting asset and two groups of investors who have different beliefs on the speed of mean…
We develop a general term structure framework taking stochastic discontinuities explicitly into account. Stochastic discontinuities are a key feature in interest rate markets, as for example the jumps of the term structures in…
This paper deals with a study of the effects that spherically symmetric first-order metric perturbations and vacuum quantum fluctuations have on the stability of the multiply connected de Sitter spacetime recently proposed by Gott and Li.…
In this paper, we consider the problem of choosing a set of multi-party contracts, where each coalition of agents has a non-empty finite set of contracts to choose from. We call such problems, contract choice problems. We provide conditions…