Related papers: Is the Monetary Transmission Mechanism Broken? Tim…
The problem of non-stationarity in financial markets is discussed and related to the dynamic nature of price volatility. A new measure is proposed for estimation of the current asset volatility. A simple and illustrative explanation is…
A modern version of Monetary Circuit Theory with a particular emphasis on stochastic underpinning mechanisms is developed. It is explained how money is created by the banking system as a whole and by individual banks. The role of central…
We propose a stability analysis method for sampled-data switched linear systems with quantization. The available information to the controller is limited: the quantized state and switching signal at each sampling time. Switching between…
We investigate estimation of fluctuating channels and its effect on security of continuous-variable quantum key distribution. We propose a novel estimation scheme which is based on the clusterization of the estimated transmittance data. We…
This paper investigates the emergence of wealth inequality through a minimalist kinetic exchange model that incorporates two fundamental economic features: fixed-amount transactions and hard budget constraints. In contrast to the maximum…
We investigate quantitatively the so-called leverage effect, which corresponds to a negative correlation between past returns and future volatility. For individual stocks, this correlation is moderate and decays exponentially over 50 days,…
Quantum communications promise to revolutionise the way information is exchanged and protected. Unlike their classical counterpart, they are based on dim optical pulses that cannot be amplified by conventional optical repeaters.…
A simple quantum model explains the Levy-unstable distributions for individual stock returns observed by ref.[1]. The probability density function of the returns is written as the squared modulus of an amplitude. For short time intervals…
Compound interest as well as inflation grows exponentially with time, whereas other means to repay debt grow polynomially. For this and other, mostly political, reasons, debt without inflation is unsustainable. We suggest a discontinuous…
Quantum Error Mitigation (EM) is a collection of strategies to reduce errors on noisy intermediate scale quantum (NISQ) devices on which proper quantum error correction is not feasible. One of such strategies aimed at mitigating noise…
Quality estimation (QE)-the automatic assessment of translation quality-has recently become crucial across several stages of the translation pipeline, from data curation to training and decoding. While QE metrics have been optimized to…
Current model quantization methods have shown their promising capability in reducing storage space and computation complexity. However, due to the diversity of quantization forms supported by different hardware, one limitation of existing…
In this paper, we introduce quantile coherency to measure general dependence structures emerging in the joint distribution in the frequency domain and argue that this type of dependence is natural for economic time series but remains…
It is well known that the interaction of quantum systems with the environment reduces the inherent quantum correlations. Under special circumstances the effect of decoherence can be reversed, for example, the interaction modeled by an…
We discover that quantum dynamical tunneling, occurring between phase space regions in a classically forbidden way, can break conserved quantities in pseudointegrable systems. We rigorously prove that a conserved quantity in a class of…
Recently, a quantum key exchange protocol has been described, which served as basis for securing an actual bank transaction by means of quantum cryptography [quant-ph/0404115]. Here we show, that the authentication scheme applied is…
Regularization is a well-established technique in machine learning (ML) to achieve an optimal bias-variance trade-off which in turn reduces model complexity and enhances explainability. To this end, some hyper-parameters must be tuned,…
Quantum key distribution (QKD) systems can send signals over more than 100 km standard optical fiber and are widely believed to be secure. Here, we show experimentally for the first time a technologically feasible attack, namely the…
In a recent Letter, Bennett and coworkers [1] argue that proofs of exotic quantum effects using closed timelike curves (CTC's) based on the work of Deutsch [2], or other nonlinear quantum dynamics, suffer from a fallacy that they call the…
Cascading failures, such as bankruptcies and defaults, pose a serious threat for the resilience of the global financial system. Indeed, because of the complex investment and cross-holding relations within the system, failures can occur as a…