Macromodeling, Default, and Money
| Autor: | Charles Goodhart, Martin Shubik, Dimitrios P. Tsomocos, Nikolaos Romanidis |
|---|---|
| Přispěvatelé: | Mayes, David G., Siklos, Pierre L., Sturm, Jan-Egbert |
| Rok vydání: | 2019 |
| Předmět: |
HG Finance
Stochastic modelling Process (engineering) 05 social sciences Financial intermediary Monetary economics 01 natural sciences 010305 fluids & plasmas Market liquidity Order (exchange) 0502 economics and business 0103 physical sciences Default Business 050207 economics Macro Non-performing loan |
| DOI: | 10.1093/oxfordhb/9780190626198.013.22 |
| Popis: | Mainstream macromodels have assumed away financial frictions, in particular default. The minimum addition in order to introduce financial intermediaries, money, and liquidity into such models is the possibility of default. This, in turn, requires that institutions and price formation mechanisms become a modeled part of the process, or a “playable game.” Financial systems are not static, nor are they necessarily reverting to an unchanging equilibrium, but they are evolving processes, subject to institutional control mechanisms, which themselves are subject to sociopolitical development. Process-oriented models of strategic market games can be translated into consistent stochastic models incorporating default and boundary constraints. |
| Databáze: | OpenAIRE |
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