Over the last decade, information technology has contributed significantly to the evolution of financial markets, without, however, revolutionising the way in which financial institutions interact with one another. This may be about to change, as some market players are now predicting that new...

The Board of Governors of the Federal Reserve System has engaged the public in its consideration of a USD Central Bank Digital Currency (USD CBDC). The Board has framed USD CBDC issues principally around payment market access and efficiency, tending to overlook questions CBDC raises about the...

Financial intermediation has changed dramatically over the past 30 years, due in large part to technological change. The paper first describes the role of the financial system in a modern economy and how technological change and financial innovation can affect social welfare. We then survey the...

This paper empirically tests the hypothesis that landed elites may block technological change and economic development if they fear that they will lose future political power (Acemoglu and Robinson (2002, 2006, and 2012). It exploits a plausible exogenous change in the distribution of political...

We analyze investment decisions when information is costly, with and without delegation to an agent. We use a rational-inattention model and compare it with a canonical signal-extraction model. We identify three "investment conditions". In "sour" conditions, no information is acquired and no...

This study investigates the effects of lobbying and institutions on the direction of technological change in a two-sector overlapping generations model. Simulation results suggest that in an environment with unbiased institutions producers' rent-seeking activities direct the economy towards a...

The paper unveils whether ICT diffusion determines development of financial innovation in emerging economies. Particularly, we examine the impact of ICT adoption on changing values of exchange traded funds in Brazil and Mexico, comparing it to the United States as reference country (benchmark)....

The paper unveils whether ICT diffusion determines development of financial innovation in emerging economies. Particularly, we examine the impact of ICT adoption on changing values of exchange traded funds in Brazil and Mexico, comparing it to the United States as reference country (benchmark)....

The Financial Services industry is at an innovations crossroads where Big Data, digital disruption and technology have splintered the dominant design of how products are delivered and how current processes and people function. Risks abound such as ‘What types of innovation will dominate',...

Financial systems worldwide are increasingly experiencing the mounting pressure of the technology based financial innovations. Some of these developments are generating alternative financial structures, existing parallelly to the “old” ones whereas some others are simply replacing the...