We analyzed power law (Pareto) distributions of one-minute oil prices through the US Oil Fund (Ticker symbol USO), from January 1 through March 31, 2011. Using the daily power law exponent, α, we determined a critical value which predicted a price trend reversal. This critical value, estimated...

The financial crisis of 2007 sparked intensive debates on its origins. The Turner Review, published on 18 March 2009, firmly places securitisation at its heart. However, even the critics admit that this type of transaction is viewed as “socially desirable”. The paper explicitly shows how the...

Empirical descriptions and studies suggest that generally depositors observe a sample of previous decisions before deciding if to keep their funds deposited or to withdraw them. These observed decisions may exhibit different degrees of correlation across depositors. In our model depositors are...

Collateralized Debt Obligations (CDO) played a key role in the growth of Asset-Backed Security (ABS) issuance between 2004 and 2007 by providing a mechanism for lower-rated ABS to be used as collateral for the creation of AAA securities. Using a database published by Pershing Square Capital...

Inflation is a persistent challenge that affects economies globally. The battle against inflation is crucial for maintaining economic stability and promoting growth. This study aims to examine the strategies employed by the United States to overcome inflation and maintain economic stability. The...

Corporate credit lines are drawn more heavily when funding markets are more stressed. This covariance elevates expected bank funding costs. We show that credit supply is dampened by the associated debt-overhang cost to bank shareholders. Until 2022, this impact was reduced by linking the...

The dissemination of news reports and communication is inherently constrained by limitations in space, time, and attention. Consequently, news sources often base their decision to share information on the congruence between the signal and the pre-existing beliefs of the audience, leading to a...

The image of Man in the Economic Sciences is examined in this paper from the perspective of behavioral economics and expanded using new interdisciplinary research findings. Experiments show that there are many people who selflessly do good deeds and feel better for doing so, not worse. This...

German and European banks have demonstrated remarkable resilience amidst episodes of stress within global markets in March 2023. Recent reports indicate a notable increase in bank profits, alongside stable capital and liquidity ratios. Since the global financial crisis, regulatory measures have...

Following a period of subdued consumer price changes, inflation has recently surged to levels that are significantly impacting the behavior of households and firms. Although the underlying sources of inflation differ across major advanced economies, central banks have progressively tightened...