We address the paradox that financial innovations aimed at risk-sharing appear to have made the world riskier. Financial innovations facilitate hedging idiosyncratic risks among agents; however, aggregate risks can be hedged only with liquid assets. When risk-sharing is primitive, agents...

Die unklare Formulierung des Artikels 52 des Europäischen Patentübereinkommens hat zu einer Unsicherheit bezüglich der Patentierbarkeit von Erfindungen mit finanzwirtschaftlichem Hintergrund am Europäischen Patentamt (EPA) geführt. Der vorliegende Artikel gibt einen Überblick über die...

This paper addresses the discussion between economic power and the power of politics with particular focus on financial markets. After general reflections about the economic basis of power, the paper discusses in a general equilibrium framework how financial innovations can lead to risk creation...

Among the international policy institutions, the Bank for International Settlements (BIS) is known for its sensitivity to financial stability issues. Attention to the "macro-prudential" dimension of financial stability is very typical for the BIS. The Bank's macro-prudential approach first came...