Pioneering work of modelling financial anxieties was given by Kimura et al. in 1999 as psychological change of people due to financial shocks. They regressed financial position by nonstationary interest rate and estimated the variance of financial shocks in a heteroskedasticity frame work of...

The end of China's Cultural Revolution in December 1978 heralded the start of a gradual process of economic liberalization and reform. In the financial sector, the monobank system was abandoned in favor of a two-tier banking system in which the People's Bank of China (PBC) became the central...

The Federal Reserve's Fedwire funds transfer service-the biggest large-value payments system in the United States-has long displayed a peak of activity in the late afternoon. Theory suggests that the concentration of late-afternoon Fedwire activity reflects coordination among participating banks...

The problem of pricing derivative financial products is central to the theory of capital markets. An option is a financial contract conveying its owner the right of buying or selling a financial asset (underlying asset) at a preset strike price K, at a fixed expiration date T (maturity). Unlike...

The banking industry experienced a significant amount of turmoil during the Great Contraction of 1929-1933. In response, banks were forced to adjust their portfolios with the changing economic climate. One aspect banks had control over was their reserves. While there has been extensive analysis...

Many individuals simultaneously have significant credit card debt and money in the bank. The credit card debt puzzle is: given high interest rates on credit cards and low rates on bank accounts, why not pay down debt? While some economists go to elaborate lengths to explain this, we argue it is...