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widespread bank insolvency. The banks and investors share a common belief about the future value of certain long-term assets, but … severe negative shock causes the set of equilibrium prices to contract (in a manner given by a cusp catastrophe), causing … also force larger price declines. Emergency asset price supports can be understood as attempts by a central bank to …
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The paper explores whether a theory of banks doing ‘finance through money creation' implies a reconsideration of demand-side macro theory as well. To this aim, a simple methodological accounting model of the influence of financial markets over the real economy is presented. The model allows a...
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This article focuses on the rise of FinTech over the past ten years, particularly with respect to the role of technology-based platforms in the provision of credit. In this specific context, P2P lending has acquired an increasing importance, with a larger share of loans having been originated...
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For the emerging peer-to-peer (P2P) lending markets to survive, they need to employ credit-risk management practices such that an investor base is profitable in the long run. Traditionally, credit-risk management relies on credit scoring that predicts loans' probability of default. In this...
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