Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

We develop an extension of the open economy New Keynesian model in which agents are boundedly rational à la Gabaix (2020). Our setup nests rational expectations (RE) as a special case and it can successfully mitigate many “puzzling” aspects of the relationship between exchange rates and interest rates. Since the model implies an uncovered interest rate parity (UIP) condition featuring behavioral expectations, our results are also consistent with recent empirical evidence showing that several UIP puzzles vanish when actual exchange rate expectations are used (instead of realizations implicitly coupled with the RE assumption). We find that cognitive discounting dampens the effects of current monetary shocks and lowers the efficacy of forward guidance (FG), but its relative importance in mitigating the so-called FG puzzle is decreasing in openness. Finally, we show that accounting for myopia exacerbates the small open economy unit-root problem, makes positive monetary spillovers more likely, and increases the persistence of net foreign assets and the real exchange rate.

Macroeconomics --- Economics: General --- Banks and Banking --- Foreign Exchange --- Exports and Imports --- Open Economy Macroeconomics --- Monetary Policy --- Central Banks and Their Policies --- Interest Rates: Determination, Term Structure, and Effects --- International Investment --- Long-term Capital Movements --- Economic & financial crises & disasters --- Economics of specific sectors --- Finance --- Currency --- Foreign exchange --- International economics --- Real interest rates --- Financial services --- Real exchange rates --- Interest rate parity --- Exchange rates --- Foreign assets --- External position --- Currency crises --- Informal sector --- Economics --- Interest rates --- Investments, Foreign

Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

Climate and demographic changes are two major long-term trends that are evolving simultaneously. The global population is aging, while climate change is increasing the frequency and severity of weather-related disasters and lowering productivity. This paper examines the macroeconomic effects of these three changes in a common framework. Simulation results suggest that while aging drags down the real interest rate, climate change puts upward pressure on the real interest rate and inflation. As climate change intensifies, it will be the dominant factor shaping the macroeconomic variables. This results in higher inflation and a higher debt-to-GDP ratio, requiring tighter fiscal and monetary policies. The results further suggest that economic uncertainty induced by climate change amplifies these effects of climate change.

520 Milieubeleid --- 460 Economie --- Macroeconomics --- Economics: General --- Demography --- Environmental Economics --- Banks and Banking --- Computable and Other Applied General Equilibrium Models --- Macroeconomics: Consumption --- Saving --- Wealth --- Monetary Policy, Central Banking, and the Supply of Money and Credit: General --- Comparative or Joint Analysis of Fiscal and Monetary Policy --- Stabilization --- Treasury Policy --- Climate --- Natural Disasters and Their Management --- Global Warming --- Demographic Trends, Macroeconomic Effects, and Forecasts --- Economics of the Elderly --- Economics of the Handicapped --- Non-labor Market Discrimination --- Interest Rates: Determination, Term Structure, and Effects --- Economic & financial crises & disasters --- Economics of specific sectors --- Population & demography --- Climate change --- Finance --- Consumption --- National accounts --- Environment --- Demographic change --- Population and demographics --- Aging --- Real interest rates --- Financial services --- Currency crises --- Informal sector --- Economics --- Climatic changes --- Demographic transition --- Population aging --- Interest rates

Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

"Bruce Carruthers organizes his analysis around different types of credit, offering a roughly chronological discussion of each. The U.S. has always had an economy based on promises, but the manner in which questions about trust and trustworthiness have been posed and answered has evolved in important ways. Their evolution and expansion undergirded the rise of the modern credit economy, but it wasn't a smooth ride forward. Financial crises signalled the widespread collapse of promises, and a collective disbelief in their credibility. Frequently, these collapses motivated public and private attempts to build new institutional scaffolding in support of promises: the 1837 crisis prompted the development of credit ratings; the depression of the 1890s justified passage of a permanent bankruptcy law; the 1907 crisis led to the establishment of the Federal Reserve System; and the Great Depression led to a multitude of public policies in support of financial promises. At various points, political groups perceived the financial system to be deeply unfair, one that privileged some over others. During the 1880s and 1890s, agrarian groups and populists attacked a monetary and banking system that failed to give them adequate credit. During the 1960s and 1970s, women and minorities criticized a discriminatory financial system that denied them full access to consumer and mortgage credit. In The Economy of Promises, Carruthers describes the changes that have occurred, spell out their implications, and explain their significance"--

Credit --- Trust --- History. --- Economic aspects. --- Asset. --- Bank charge. --- Bank. --- Bond (finance). --- Business model. --- Capital adequacy ratio. --- Capital employed. --- Capital expenditure. --- Capital intensity. --- Cash crop. --- Cash flow. --- Commerce Clause. --- Commercial Credit. --- Commodity market. --- Commodity. --- Competition (economics). --- Consumerism. --- Credit (finance). --- Credit Insurance. --- Credit risk. --- Creditor. --- Crony capitalism. --- Currency. --- Current Price. --- Debt limit. --- Debt. --- Debtor. --- Diversification (finance). --- Economic Life. --- Economic development. --- Economic forecasting. --- Economic indicator. --- Economic interventionism. --- Economic policy. --- Economic sector. --- Economics. --- Economy of the United States. --- Economy. --- Employment. --- Exchange rate. --- Fee Income. --- Financial capital. --- Financial inclusion. --- Financial institution. --- Financial instrument. --- Financial intermediary. --- Financial services. --- Financial statement. --- Financial technology. --- Financier. --- Floating interest rate. --- Gross (economics). --- Gross Earnings. --- Gross domestic product. --- Guaranteed Loan. --- Income. --- Inflation. --- Insider Lending. --- Interest rate. --- Investment fund. --- Investment strategy. --- Investor. --- Margin (finance). --- Mark-to-market accounting. --- Market liquidity. --- Market price. --- Market rate. --- Market value. --- Mass production. --- Measures of national income and output. --- Monetarism. --- Money market account. --- Money market. --- Mortgage loan. --- Net capital rule. --- Net income. --- Payment. --- Policy. --- Price index. --- Pricing. --- Prime rate. --- Public finance. --- Purchase Price. --- Purchasing power. --- Rate of profit. --- Rate of return. --- Real interest rate. --- Relative value (economics). --- Repayment. --- Revenue bond. --- Securitization. --- Shareholder. --- Subsidy. --- Supply-side economics. --- Tax bracket. --- Tax reform. --- Trade credit. --- Value (economics). --- Working capital. --- World economy.

Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

Our Special Issue we publish at a turning point, which we have not dealt with since World War II. The interconnected long-term global shocks such as the coronavirus pandemic, the war in Ukraine, and catastrophic climate change have imposed significant humanitary, socio-economic, political, and environmental restrictions on the globalization process and all aspects of economic and social life including the existence of individual people. The planet is trapped—the current situation seems to be the prelude to an apocalypse whose long-term effects we will have for decades. Therefore, it urgently requires a concept of the planet's survival to be built—only on this basis can the conditions for its development be created. The Special Issue gives evidence of the state of econophysics before the current situation. Therefore, it can provide excellent econophysics or an inter-and cross-disciplinary starting point of a rational approach to a new era.

Research & information: general --- Mathematics & science --- energy --- economic growth --- output elasticities --- entropy production --- emissions --- optimization --- speculative attacks --- currency crisis --- neural networks --- deep learning --- Quantum-Inspired Neural Network --- traveling salesman problem --- simulated annealing technique --- kinetic exchange model --- Gini index --- Kolkata index --- minority game --- Kolkata Paise Restaurant problem --- time series analysis --- cross-correlations --- power law classification scheme --- network analysis --- globalisation --- entropy --- portfolio optimization --- regularization --- renormalization --- econophysics --- highway freight transportation --- radiation model --- transportation network --- network diversity --- power law --- economic development --- decision-making --- bounded rationality --- complexity economics --- information-theory --- maximum entropy principle --- quantal response statistical equilibrium --- correlation coefficient --- detrended cross-correlation analysis --- COVID-19 --- mobility indices --- random geometry --- risk measurement --- disordered systems --- replica theory --- return distributions --- power-law tails --- stretched exponentials --- q-Gaussians --- financial markets --- financial complexity --- collective intelligence --- emergent property --- stock correlation --- lexical evolution of econophysics --- text as data --- correspondence analysis --- long-range memory --- 1/f noise --- absolute value estimator --- anomalous diffusion --- ARFIMA --- first-passage times --- fractional Lèvy stable motion --- Higuchi's method --- mean squared displacement --- multiplicative point process --- correlation filtering --- minimal spanning tree --- planar maximally filtered graph --- topological data analysis --- SGX --- TAIEX --- complex systems --- ecological economics --- urban-regional economics --- income distribution --- financial market dynamics --- income tax --- tax deduction --- income redistribution --- government transfer --- government dependency --- poverty line --- basic income guarantee --- effective tax rate --- balanced budget --- elastic tax --- Cantor set --- fractals --- homeomorphism --- detrended fluctuation analysis --- Hurst exponent --- continuous time random walk --- intertrade times --- volatility clustering --- local transfer entropy --- long-short-term-memory --- Bitcoin --- cryptocurrencies --- multiscale analysis --- detrended cross-correlations --- covariance matrices --- copulas --- high-frequency trading --- market stability --- agent-based models --- structural entropy --- Economic Freedom of the World index --- Index of Economic Freedom --- rank-size law technique --- power law behaviour --- exponential behaviour --- multiscale partition function --- multifractal analysis --- company market --- export readiness --- internationalization --- options pricing --- mortality --- companies --- start-up --- FTSE100 --- Gompertz --- MinMax --- survival probability distribution --- high-frequency trader --- multivariate Hawkes process --- forex market --- wealth distribution --- kinetic models --- wealth inequalities --- compartmental epidemic modelling --- vaccination campaign --- flash crash --- systemic risk --- financial networks --- high frequency trading --- market microstructure --- phase transition --- criticality --- dynamics of complex networks --- cascading failure --- network science --- economic complexity --- relatedness --- products and services --- planar graph --- partial correlation --- discounting --- bond pricing --- real interest rates --- calendar anomalies --- day-of-the-week effect --- market indices --- multifractal detrended fluctuation analysis