Intertemporal macroeconomics relies on microeconomics and general equilibrium analysis to describe choices of agents over a long period of time, perhaps infinitely long. To this, methods of growth theory are linked and the effects of policy interventions are examined as the interaction between decisions of agents and policy interventions. Two basic approaches areexplored: models of infinitely-lived agents (Cass-Ramsey-Koopmans approach) and models of overlapping-generations (Allais-Fisher-Samuelson approach). In addition to fiscal policy, the more controversial questions concerning monetary models and monetary policies are considered. The book offers a framework and a systematic exploration of these and related questions. It also introduces models of endogenous growth, both real and monetary models.

This book presents innovations in the mathematical foundations of financial analysis and numerical methods for finance and applications to the modeling of risk. The topics selected include measures of risk, credit contagion, insider trading, information in finance, stochastic control and its applications to portfolio choices and liquidation, models of liquidity, pricing, and hedging. The models presented are based on the use of Brownian motion, Levy processes and jump diffusions. Moreover, fractional Brownian motion and ambit processes are also introduced at various levels. The chosen blend of topics gives an overview of the frontiers of mathematics for finance. New results, new methods and new models are all introduced in different forms according to the subject. Additionally, the existing literature on the topic is reviewed. The diversity of the topics makes the book suitable for graduate students, researchers and practitioners in the areas of financial modeling and quantitative finance. The chapters will also be of interest to experts in the financial market interested in new methods and products. This volume presents the results of the European ESF research networking program Advanced Mathematical Methods for Finance.

This book explains how standard micro-founded macroeconomics is misguided and proposes an alternative method based on statistical physics. The Great Recession following the bankruptcy of Lehman Brothers in September 2015 amply demonstrated that mainstream micro-founded macroeconomics was in trouble. The new approach advanced in this book reasonably explains important macro-problems such as employment, business cycles, growth, and inflation/deflation. The key concept is demand failures, which modern micro-founded macroeconomics has ignored. "It (Chapter 3) captures analytically a good part of the intuition that underlies the Keynesian economics of people like Tobin and me." Robert Solow, Emeritus Institute Professor of Economics, Massachusetts Institute of Technology, Nobel Laureate in Economics, 1987 "Professor Hiroshi Yoshikawa provides a unique synthesis of statistical physics and macro-economic theory in order to confront the dismal failure in economics and in finance to understand how an economy or a financial market works, given the heterogeneous decision making of many different individual interacting actors. Economics has failed in this regard with the naive and often misleading concept of "representative agents." The author presents many insights on the historical development, concepts, and errors made by the most illustrious economists in the past. This book should be essential readings for any economics students as well as academic researchers and policy makers, who should learn to bring back good-sense thinking in their impactful decisions." Didier Sornette, Professor on the Chair of Entrepreneurial Risks at the Swiss Federal Institute of Technology Zurich (ETH Zurich)

For centuries Japan, although a totalitarian dictatorship, was ruled by figureheads who signed laws formulated 'behind the screen'. Hierarchy still defines everyone's status. The man at the top has power but jeopardizes his position if he ignores consensus opinions. Nowadays fashionable twentieth-century clothing cloaks a contradictory blend of intense competition with a tradition of harmony dependent on close human-relations and complex communal restraint. The Japanese organise themselves in cliques (not groups) which raise barriers against outsiders. Companies are controlled from within; shareholders are outsiders. Women are more than equal in their homes; less than equal at work. After living and managing his own business in Japan for forty years, the author explored widely before coining the term 'competitive communism' to describe Japan's economic and social system.

This open access book is the first attempt to elaborate the formalization phase of banking supervision in eight developed countries-USA, Japan, Sweden, Germany, Switzerland, Belgium, France, and UK. This innovative study in the field of banking supervision history identifies why national histories of banking supervision share similarities, but also remain different and are heavily path dependent. This book will be of great interest not only to financial/economic historians but also to general readers interested in banking supervision, i.e., students, bankers, supervisors, and international officials.

Economists broadly define financial asset price bubbles as episodes in which prices rise with notable rapidity and depart from historically established asset valuation multiples and relationships. Financial economists have for decades attempted to study and interpret bubbles through the prisms of rational expectations, efficient markets, equilibrium, arbitrage, and capital asset pricing models, but they have not made much if any progress toward a consistent and reliable theory that explains how and why bubbles (and crashes) evolve and are defined, measured, and compared. This book develops a new and different approach that is based on the central notion that bubbles and crashes reflect urgent short-side rationing, which means that, as such extreme conditions unfold, considerations of quantities owned or not owned begin to displace considerations of price.

A new theory to explain the problems Mexico has had in developing a viable market economy is presented in this innovative book. The theory bases the difficulties not on the current popular view of dependency, domestic response to foreign influence, but on Mexican culture and traditions. Armstrong traces patterns of Mexican history and lawmaking from the time of the Spanish conquistadores through the present. He demonstrates that the country has never developed a materialistic culture of egoism and autonomy, necessary in a market economy, but instead reinforces communitarian paternalism. The ideologies imported by the intellegensia (such as nineteenth century liberalism and twentieth century socialism) are shown to have had little impact on Mexico because the implicit premises of these philosophies have been incompatible with social conditions and aspirations in that nation. Armstrong argues that the blend of Spanish and traditional Indian cultures which focus on communitarian and paternalistic attitudes have constricted entrepreneurship, innovation, and commerce.

"Law and Market Society in Mexico" begins in New Spain. The author explores the patterns of land tenure by the conquistadores and collective ownership among the Indians. Both the land and labor in Mexico were generally not articles of commerce, with systems such as mortmain, entail, and debt peonage in place. Current government stewardship is seen as far more intense than the level of regulation the United States has been accustomed to. This perceptive work is ideal for courses on Latin American studies, politics, and history.

This book identifies that problems that China must face to develop its economy and elucidates the structural deficiencies which lay behind these problems. Chinese economy compared with other economies in the world. The book also analyzes China's present economic situation and, where possible, provides prescriptions for solving its problems by comparing it with the Japanese development experience.

New economic thinking is in demand in the light of the recent crisis. But it is constrained by the prevailing way of thinking about the economy and about economics. This book equips the reader with a better understanding of current thinking and increases awareness of other possibilities. This selection of essays provides the foundations for debate at the levels of methodology and mode of thought; not only does awareness at these levels increase mutual understanding, making debate more constructive and increasing the possibilities for creative new developments, but it also puts the onus on economists to communicate and defend their own approach. This collection builds up these foundations and addresses particular issues, such as differences in meaning of key concepts. These issues have important practical implications for theory and policy.

This book studies China's international relations, development strategies and development path. It provides an objective and in-depth analysis of areas including international relations in the context of China's population and resource environment, ways to strengthen China's external competitiveness, strategies for economic security and China's trade currency, Sino-US relations in the 21st Century, geopolitical strategy and great renaissance of Chinese culture. The book analyzes the difficulties, challenges and unique features of China's economic and social development. Further, it examines long-term and short-term social and economic issues as well as the difficulties in dealing with the issues. It provides objective and realistic suggestions for realizing China's dream of the great rejuvenation of the nation. It is a valuable source of reference for researchers and practitioners interested in China's development.

Latin America is in the midst of dramatic transformations. Stabilization and structural adjustment programs are dismantling state regulation of the economy. Democratic transitions are pointing toward the emergence of new institutional arrangements. Democratization and market-oriented economic restructuring pose major questions concerning new social configurations combining rising levels of poverty, low intensity citizenship, environmental degradation, and enduring legacies of elite privilege and authoritarianism. Analyzing these and related issues, this volume contributes to a world-system perspective suggesting that the region is experiencing a great transformation characterized by a deepening differentiation between state, enterprises, and households. Emergent patterns of competition and organizational change are discussed along with the social consequences of restructuring and the potential for political transformation.

In this book, leading experts take a long-term view of the trends and policies of most relevance in achieving the structural readjustment required by the current crisis, which for too long has been viewed merely as an economic recession. A wide variety of issues are addressed, including the implications of the massive movement of wealth from advanced countries to emerging ones and the increasing income inequality evident within many countries. Prospects for growth toward the mid-century and beyond are discussed, with consideration of lessons from the past and the impact of various constraints, including corruption. The policies and reforms required to restore economic dynamism within the EU and more generally, to foster the "Good Economy" are discussed, recognizing the need for measures to promote innovation, entrepreneurship, well-being and high levels of environmental performance. The book comprises a selection of contributions presented at the XXV Villa Mondragone International Economic Seminar. For the past quarter of a century, this seminar has brought together leading experts to engage in debates on pressing economic questions. This book, based on the most recent gathering, will be of interest to all who are concerned about the challenges to growth, well-being and social inclusion that will have to be confronted in the coming decades.

How a country competes in the world is the crucial factor in determining that country's ability to benefit from international trade in today's global economy. This book offers a complete and proper understanding of the meaning of international competitiveness, analyzes the implications it holds for an economy's progress, examines how it may be pursued and sustained at both the sectoral level (firms and industries) and the national level (strategic objectives). The author offers pertinent policy guidelines and prescriptions for how a nation can achieve and maintain international competitiveness in order to sustain the long-term prosperity of its industries, and hence the overall pace of economic growth.

The book is arranged into three parts. Part I discusses and defines the theories of international competitiveness. Part II deals with policy issues, specifically the policy analysis of structural reforms for promoting a country's ability to compete, the impact of globalization and the role of Communication and Information Technology (CIT), strategic trade policies, and environmental issues. Part III analyzes the strategies used to pursue competitiveness. The book will be useful for researchers, students, and teachers of business and economics as well as policy makers, business practitioners, and international and governmental agencies.

There is no better guide than Paul Krugman to basic economics, the ideas that animate much of our public policy. Likewise, there is no better foe of zombie economics, the misunderstandings that just won't die. Arguing with Zombies is Krugman "the most hated and most admired columnist in the US" (Martin Wolf, Financial Times) at his best, turning readers into intelligent consumers of the daily news with quick, vivid sketches of the key concepts behind taxes, health care, international trade and more. In this new book, in which he builds on and expands his The New York Times columns and other writings, "the most celebrated economist of his generation" (The Economist), offers short, accessible chapters on topics including the European Union and Brexit, the fight for national health care in the United States, the financial meltdown of 2007-2008, the attack on Social Security and the fraudulent argument-the ultimate zombie-that tax cuts for the rich will benefit all.

This book offers a comprehensive overview of the financial systems of major industrialized countries using the statistical framework of the financial accounts. After a discussion of how economists agreed to create a framework to monitor the financial linkages between surplus and deficit sectors, the book analyzes in detail the composition and the recent evolution of financial assets and liabilities for households (including public pension rights), firms and intermediaries. Next, the volume studies the convergence patterns of financial structures and their influence on the effectiveness of monetary policy within European countries. The final chapter unifies the previous pictures, showing how the effects of financial integration and global imbalances could have been foreseen based on the financial accounts. The analysis and information contained in the book will help the readers to understand many issues and challenges raised by the recent financial crisis.

‘Gianni Montezemolo has produced an outstanding book on the strategic implications of the emergence of greater Europe for global companies. Based on his many years of experience as a senior executive of major international companies, Montezemolo makes a convincing case as to why greater Europe is destined to be the next economic super power. His hands-on experience makes him uniquely qualified, not only about the need for developing a strategic vision for Europe, but also about the key managerial issues facing companies operating in greater Europe. This book is a "must read" for the CEOs of major corporations throughout the world.’ Professor Michael Yoshino, Harvard Business School

‘Europe Incorporated: The New Challenge offers fresh, clear insights into where Europe is heading and what to do about it. Anyone with an interest in the Europe of tomorrow will profit from reading these pages.’ George Fisher, Chairman and CEO, Kodak

‘Global businesses pay a lot of attention to shifts in economic power. The author’s view of the coming European millennium challenges traditional perceptions and offers compelling reading.’ Peter Brabeck-Letmathe, CEO, Nestlé

‘Europe Incorporated: The New Challenge addresses a key issue for most CEOs: how to take advantage of the profit opportunities that greater Europe provides. The development of the single market enhanced by the euro, and the opening of Eastern Europe requires major structural changes even in companies that have so far been quite successful.’ Antony Burgmans, Chairman, Unilever

This collection explores the relationships between the emotional and material, engaging with and developing the debates surrounding the emotional and material labour involved in producing and reproducing domestic and intimate spaces. The contributions examine the geographies and spaces of consumption in international and local-global spheres.

This open access book provides a readable narrative of the bubbles and the banking crisis Japan experienced during the two decades between the late 1980s and the early 2000s. Japan, which was a leading competitor in the world's manufacturing sector, tried to transform itself into an economy with domestic demand-led mature growth, but the ensuing bubbles and crisis instead made the country suffer from chronicle deflation and stagnation. The book analyses why the Japanese authorities could not avoid making choices that led to this outcome. The chapters are based on the lectures to regulators from emerging economies delivered at the Global Financial Partnership Center of the Financial Services Agency of Japan.

This work deals primarily with social costs of transformation to a market economy in Poland, the Czech Republic and Hungary. The transformation provisions have negatively affected the well-being of the population. They brought about unemployment, a phenomenon which did not exist in the previous, communist system, increased income inequities, reduced social programmes and expanded poverty. All these phenomena are examined in this book. In addition, the book discusses the strategy of transformation, privatization and the economic performance of the three countries.

Although it is agreed that the dual development of monetary integration and territorial enlargement are likely to generate profound effects on European spatial structure, in both West and East, much uncertainty centres around the question of what changes will be brought about. This book furthers our economic understanding of the opportunities and challenges offered by these developments. The emphasis is primarily on the economic agenda associated with European integration. Part A reviews the debate on European monetary unification. Economic integration raises many issues, one which is dealt in depth is the issue of convergence versus divergence. Part B centres around the dynamics of cohesion in the EU and the associated regional policies, reflecting on experience from the past and challenges for the future. Part C sheds some light on the complexities of transition and integration of Central and Eastern European countries, the second major challenge being faced by the EU at the turn of the century.

This book tests the critical potential of happiness research to evaluate contemporary high-performance societies. These societies, defined as affluent capitalist societies, emphasize competition and success both institutionally and culturally. Growing affluence improves life in many ways, for a large number of people. We lead longer, safer, and more comfortable lives than previous generations. But we also live faster, and are competition-toughened, like top athletes. As a result, we suspect limits and detect downsides of our high-speed lives. The ubiquitous maximization principle opens up a systematic gateway to the pleasures and pains of contemporary life. Using happiness as a reference point, this book explores the philosophical and empirical limits of the maximization rule. It considers the answer to questions such as: Precisely, why did the idea of (economic) maximization gain so much ground in our Western way of thinking? When, and in which life domains, does maximization work, when does it fail? When do qualities and when do quantities matter? Does maximization yield a different (un)happiness dividend in different species, cultures, and societies? "

As a prospective economic giant in the next century, developments in the Chinese economy are of significance to the global economy. This book consists of contributions concerned with analysing contemporary developments and issues facing the country after two decades of economic reform, and key policies which will exert a profound influence upon the country's prospective growth and development momentum into the next millennium. This well-researched book, although comprehensive in its coverage, is succinct and very readable, and will be of interest to scholars and students of developing and transitional economies, business practitioners and policy-makers.

This book brings under a magnifying glass a little explored, but significant topic - the communications changes of the National Bank of Romania after 2008. Given the similarities and differences between central banks' mechanisms and practices adopted, its applicability and impact for other actors are incontestable. The research incorporates valuable details on how the National Bank of Romania's communication changed during the Great Recession of 2008, as well as insightful data about the way in which different categories of public and media perceived this change. The timeliness and significance of this research are noticeable as the central banks already entered a new era of communication challenges triggered by the Covid-19 pandemic and recently by the Russia - Ukraine war. Lessons from the past can contribute to what researchers name the second revolution in communication, focusing on opening the central banks to the public and regaining trust, especially in such a difficult period.

This Pivot book provides a framework for understanding the economic and potentially unequal effects of pandemics, focusing closely on the Spanish Flu. It provides an in-depth analysis of the different effects of the Spanish Flu on the economy from unequal mortality to wages, housing and output. There is a general review of the literature but an important feature of this book is that it explains results using data from Spain, an ideal country to perform this exercise, as its mortality data is not affected by the First World War. Spain was also developed enough to have reliable data, but it was very heterogeneous across regions which will allow a comparison of more and less developed regions. No other book exists that offers a comprehensive and data-driven view of the effects of the Spanish Flu, which is the closest pandemic example to Covid-19. With the outbreak of Covid-19 increasing the need to learn about the economic effects of pandemics, this book will be of interest to academics and students of economic history, macroeconomics (economic crises) and economic development, as well being accessible for the general reader.

This interdisciplinary book argues that the economy has an underlying non-linear structure and that business cycles are endogenous, which allows a greater explanatory power with respect to the traditional assumption that dynamics are stochastic and shocks are exogenous. The first part of this work is formal-methodological and provides the mathematical background needed for the remainder, while the second part presents the view that signal processing involves construction and deconstruction of information and that the efficacy of this process can be measured. The third part focuses on economics and provides the related background and literature on economic dynamics and the fourth part is devoted to new perspectives in understanding nonlinearities in economic dynamics: growth and cycles. By pursuing this approach, the book seeks to (1) determine whether, and if so where, common features exist, (2) discover some hidden features of economic dynamics, and (3) highlight specific indicators of structural changes in time series. Accordingly, it is a must read for everyone interested in a better understanding of economic dynamics, business cycles, econometrics and complex systems, as well as non-linear dynamics and chaos theory.