The article deals with the fundamental methodological and theoretical ideas of market economy. The logical core of the market economy (ME) and its functioning is briefly described. From these logical bases of ME basic principles of its right functioning are deduced and from there is deduced how...

In this paper, we study the effectiveness of carry trade strategies during and after the financial crisis using a flexible approach to modeling currency returns. We decompose the currency returns into multiplicative sign and absolute return components, which exhibit much greater predictability...

In this paper we study systemic risk for the US and Europe. We show that banks' exposures to common risk factors are crucial for systemic risk. We come to this conclusion by first showing that relations between US and European banks are smaller than within each region. We then show that European...