Browsing: Economics

Economics

Back to the 1980s for future market insights

Sep 6th, 2018 | Filed under: Business News, Economics, Finance & Economics, Newly Added, Other Topics in A.I., The A.I. Industry

Christina Zhu, of the University of Pennsylvania, in a recent paper, looks at the consequences of Big Data for corporate management. What “Big Data” means depends on who is talking or writing about it. For economists working within the classic microeconomic framework, it means a drastic fall in the cost of acquiring information.Read More


Hedging or Trading? Why Italian Banks Use Derivatives

Aug 23rd, 2018 | Filed under: Commodities, Credit Derivatives, Derivatives, Economics, Hedge Funds, Institutional Asset Management, Newly Added, Risk management, Risk Management & Operations, Risk Management Strategies & Processes, The A.I. Industry, The Global Economy & Currencies

A recent report by the Bank of Italy looks at why the various banks of Italy use derivatives. Specifically, the central bank of that country wanted to know: is it a matter of hedging? Or is it a matter of keeping a proprietary book? Hedge fund managers and other pursuersRead More


Looking at a Continent: Stress-Testing Banks and Insurers

Mar 14th, 2017 | Filed under: Economics, Finance & Economics, Newly Added, The Global Economy & Currencies

The European Central Bank’s financial stability review, published in November 2016, predicts “steady, but modest, euro area economic recovery, despite continued headwinds.” The review is designed to assist Europe’s policy making authorities by providing information about the bank’s microprudential and macroprudential roles, along with the risks and vulnerabilities of theRead More


Stocks after Shocks: Equity Returns in the Face of Monetary Policy

Jul 31st, 2016 | Filed under: Economics, Finance & Economics, Financial Economics Theory, Newly Added, The Global Economy & Currencies

A new paper by two economists affiliated with the Federal Reserve System presents a new measure of the monetary policy exposure of individual stocks. The simplest approach to this task would be to regress individual stock returns around major central bank moves (“shocks”). But that turns out not to beRead More


Cross-Border Insolvencies: Defection Isn’t the Only Problem

Mar 17th, 2016 | Filed under: Business News, Economics, Finance & Economics, Newly Added

A recent paper by Andrew Dawson, a law professor of the University of Miami, looks at the current cross-border insolvency framework from the point of view of the cultural differences that may be expressing themselves through the distinct systems on the opposite sides of many an international border.  His discussionRead More


Could Random Trading Prevent Stock Market Bubbles & Crashes?

Jun 15th, 2014 | Filed under: Alpha Hunters, Alpha Strategies, Economics

Many of recent history¹s most significant market events have manifest in what was (previously) the extreme of the market. These"bubbles" and "crashes" follow power laws, meaning that (in theory) they could reach any size and fundamentally threaten the functionality of the entire financial system. Could random trading be the solution?Read More


Happy 100th Birthday to the U.S. Federal Reserve

Feb 27th, 2013 | Filed under: Economics

Bernanke says: The yield on Fed assets in excess of their funding costs may fall in coming years (reducing profits), but should not fall below zero. Brynjolfsson says: This is insanely hopeful and extremely irresponsible. Read More