Stablecoins are reshaping global monetary systems, offering hybrid structures with public and private monies.
problem The evolution of stablecoins from crypto innovation to a global monetary component.
method Econometric analysis and hybrid system design modeling.
result Stablecoins maintain strong peg stability, and a hybrid system design ensures financial resilience.
Study develops hybrid model to mitigate stablecoin liquidity risk.
problem Increasing integration of stablecoins introduces liquidity risk during market stress.
method Hybrid monetary architecture with 100% reserve backing and liquidity facilities.
result Demonstrates significant reduction in peg deviations and stress persistence.
Study shows monetary policy impacts digital assets like BTC and ETH.
problem Impact of monetary policy on digital assets and DeFi.
method Event study regressions and high-frequency price analysis.
result Monetary policy surprises negatively affect BTC and ETH but not other digital assets.
Study improves U.S. monetary policy forecasting by integrating text and data.
problem Forecasting central bank policy decisions, especially the Fed's rate changes.
method Multi-modal approach combining structured data and unstructured text from Fed communications.
result Hybrid models outperform unimodal baselines, achieving a test AUC of 0.83.
Hybrid model improves forest growth predictions.
problem Misspecified assumptions in mechanistic models.
method Forest Informed Neural Networks (FINN) combining DVM and DNN.
result DNN learned improved growth process functional form.
Microarray cancer gene expression data comprise of very high dimensions. Reducing the dimensions helps in improving the overall analysis and classification performance. We propose two hybrid techniques, Biogeography - based Optimization - Random Forests (BBO - RF) and BBO - SVM (Support Vector Machines) with gene ranki…
This study synthesizes stablecoin systems and develops a performance evaluation framework.
problem Fragmented academic research on stablecoins across economics, law, and computer science.
method Multi-method research design including literature synthesis, performance evaluation framework, and case study.
result Unified taxonomy and performance evaluation framework for stablecoin design.
News on inflation and monetary policy impacts US household inflation expectations.
problem Understanding how news affects inflation expectations.
method Monthly disaggregated US data from 1978 to 2016, controlling for various factors.
result News on rising inflation and easier monetary policy has a stronger impact on inflation expectations.
Study finds monetary policy uncertainty negatively impacts Bitcoin returns.
problem Impact of monetary policy and uncertainty on cryptocurrencies market.
method Markov Switching Means VAR (MSM-VAR) method.
result Monetary policy uncertainty leads to a decline in Bitcoin returns.
Thanks to the recent availability of comprehensive and detailed online databases of startup companies, it has become possible to more directly investigate startup ecosystems i.e. startup populations in specific regions. In this paper, we analyze the emergence of 20+ such ecosystems in Europe and the USA, with a specifi…
This study shows how monetary uncertainty affects stock market reactions to macroeconomic news.
problem Understanding stock market reactions to macroeconomic news under varying levels of monetary uncertainty.
method Decomposes stock market response into cash flow and risk-free rate channels, analyzing time-varying effects.
result High monetary uncertainty weakens the positive stock market response to macroeconomic news.
LightAutoML automates ML for a large financial services company.
problem Building high-quality ML models for a complex financial ecosystem.
method Developed an AutoML system tailored to a large European financial services company's unique requirements.
result LightAutoML outperformed experienced data scientists and other open-source solutions.
Algorithmic stablecoins optimize monetary policy to balance price stability.
problem Persistent inflation from centralized monetary policy.
method Propose and study a rule-based monetary policy model for algorithmic stablecoins.
result Optimal trade-off between price stability and supply stability.
Regardless of the gold-standard being considered as outdated, it provides valuable signs concerning the development of novel monetary standards, better adjusted to the current macroeconomic environment. By using a point of view of classical physics, the intent of this work is doing a review of the concept of monetary s…
The paper uses LSM to solve complex monetary utility functions.
problem Computing dynamic monetary utility functions with high dimensions.
method Least Squares Monte Carlo (LSM) algorithm.
result LSM algorithm successfully applied to recursive Cost-of-Capital valuation.
Defines data science as a natural ecosystem with challenges and missions.
problem Challenges and missions in data science due to 5D complexities and data life cycle phases.
method Systemic and data-centric view of data science as a fusion of data universe and its challenges, formalizing a general-purpose architecture.
result Essential data science as a natural ecosystem integrating specific disciplines and high-impact applications.
Study examines remittances in Nepal, linking external demand and domestic monetary conditions.
problem Understanding the dynamics of remittances in Nepal's economy.
method Constructed composite indices via PCA for external demand and domestic monetary conditions. Used ARDL, cointegration, DOLS, ECM, and machine learning for analysis.
result Strong positive long-run effect of external demand on remittances, significant negative impact of tighter domestic monetary conditions.
Theory integrates loss aversion into expected utility for monetary returns.
problem Modeling loss aversion in expected utility theory.
method Develops state-dependent linear utility functions incorporating loss aversion.
result Contracts from monopolists in insurance markets.
This study maps systemic risks in TradFi and DeFi, highlighting their interdependence.
problem Systemic risks in traditional and decentralized finance.
method Conceptual model and comparative analysis of TradFi and DeFi.
result Systemic risks in DeFi can affect TradFi and vice versa, creating a crosstagion effect.
This paper connects monetary and star-shaped risk measures by showing their equivalence under certain conditions.
problem Understanding the relationship between monetary and star-shaped risk measures.
method Analyzing the acceptability of 0 and the normalization property.
result Monetary risk measures are only a translation away from star-shapedness under mild conditions.
Study clusters bank customers using LSTM and DTW.
problem Efficiently segmenting bank customers for targeted offers.
method Encoder-decoder LSTM network and Dynamic Time Warping (DTW).
result Hybrid method yields more accurate clusters.
In this paper the dependence of wealth distribution and the velocity of money on the required reserve ratio is examined based on a random transfer model of money and computer simulations. A fractional reserve banking system is introduced to the model where money creation can be achieved by bank loans and the monetary a…
FLUXtrapolation benchmarks machine learning for extrapolating ecosystem fluxes under distribution shifts.
problem Machine learning challenges in extrapolating ecosystem fluxes under distribution shifts.
method Defined temporal, spatial, and temperature-based extrapolation scenarios; evaluated performance across domains, temporal aggregations, and tail errors.
result Baselines perform similarly under median hourly RMSE but differ under tail-focused and multi-scale evaluations.
We study time-consistency questions for processes of monetary risk measures that depend on bounded discrete-time processes describing the evolution of financial values. The time horizon can be finite or infinite. We call a process of monetary risk measures time-consistent if it assigns to a process of financial values …
Research shows SBP's tone impacts stock market returns positively or negatively.
problem Impact of State Bank of Pakistan's monetary policy communications on stock market.
method Sentiment analysis and high frequency stock market returns analysis.
result Positive or negative tone in SBP communications affects stock returns positively or negatively.
Growth of monetary assets and debts is commonly described by the formula of compound interest which for the case of continuous compounding is the exponential growth law. Its differential form is dc/dt = i c where dc/dt describes the rate of monetary growth, i the compounded interest rate and c the actual principal. Exp…
Analyzes securitization impacts on monetary and fiscal policies.
problem Impact of securitization on monetary and fiscal policies.
method Develops optimal conditions, identifies constraints, introduces new decision models.
result Identifies constraints and interactions of securitization with capital-reserve requirements.
The paper models US inflation and hyperinflation using monetary and GDP data.
problem Understanding and predicting inflation and hyperinflation.
method Developed economic models to predict US CPI growth based on BMS, GDP, and savings.
result An exact relationship between CPI growth and BMS growth minus GDP and savings growth was found, with a residual term.
We generalize the notion of monetary value measures developed with category theory in [Adachi, 2014] by extending their base category from the category \c{hi} to the category of probability spaces Prob introduced in [Adachi and Ryu, 2016].
This paper studies the dynamics of Brazilian interest rates for short-term maturities. The paper employs developed techniques in the econophysics literature and tests for long-range dependence in the term structure of these interest rates for the last decade. Empirical results suggest that the degree of long-range depe…
The paper explores non-convex risk measures and their characterizations.
problem Characterizing non-convex risk measures without convexity or weak convexity.
method Characterizes monetary risk measures as lower envelopes of families of convex or coherent risk measures, considering law-invariance and SSD-consistency.
result Unified representation theorems for law-invariant risk measures, including VaR.
Large financial dataset tracks FOMC communications and their impact.
problem Understanding how FOMC communications influence financial markets.
method Constructed a large annotated dataset of FOMC speeches, minutes, and transcripts. Developed a hawk-dove classification task. Evaluated various models on the dataset and used RoBERTa-large for monetary policy stance measurement.
result Monetary policy stance measures derived from FOMC documents predict market performance.
Study on efficiency in economies with risk-averse agents, finding Pareto optima.
problem Efficiency in economies with risk-averse agents.
method Analysis of utility functionals, existence and characterization of Pareto optima.
result Existence and comonotone characterization of Pareto optima for risk-averse agents.
New eco-systemic prudential policies aim to finance green companies, reducing systemic financial risk.
problem Insufficient financing for green companies despite available savings and monetary management.
method Reorient corporate accounting towards socio-environmental solvency, facilitating access with public guarantees.
result Green financing increases, reducing systemic financial risk and promoting less leveraged investments.
Study shows how macroprudential policies affect credit growth in Israel, especially in housing and business sectors.
problem Impact of macroprudential policies on credit growth in Israel.
method Bank-level panel data analysis for Israel, 2004-2019; interaction of monetary and macroprudential policies.
result Accommodative monetary policy interacts with macroprudential policies to increase total credit growth.
This survey gives an introduction to monetary measures of risk as monotone and cash additive functions on spaces of univariate random variables. Primal and dual representation results as well as several examples are discussed. Principal ways to construct risk measures are given and extensions to more general situations…
This paper explores how LLMs can improve pipeline-based conversational agents.
problem Limitations of pipeline-based conversational agents in human-like conversations.
method Investigated LLMs' capabilities in two phases: design and development, and operations.
result LLMs can enhance pipeline-based agents in various tasks like data generation, intent classification, and auto-correction.
This is an invited article for the Discussion and Debate special issue of The European Physical Journal Special Topics on the subject "Can Economics Be a Physical Science?" The first part of the paper traces the personal path of the author from theoretical physics to economics. It briefly summarizes applications of sta…
Tabular Q-learning outperforms advanced RL methods in monetary policy.
problem Dynamic setting of short-term interest rates to stabilize inflation and unemployment under uncertain macroeconomic conditions.
method Discrete-action Markov Decision Process with tabular Q-learning, SARSA, Actor-Critic, Deep Q-Networks, Bayesian Q-learning, POMDP formulations.
result Standard tabular Q-learning achieved the best performance (-615.13 +- 309.58 mean return) compared to advanced RL methods and traditional policy rules.
Debt-financed collateral in DeFi increases stability risks.
problem Financial stability risks in DeFi ecosystems due to debt-financed collateral.
method Categorization and classification algorithm to measure debt-financed collateral.
result Wide-spread use of stablecoins as debt-financed collateral increases financial stability risks.
Conventional financial models fail to explain the economic and monetary properties of cryptocurrencies due to the latter's dual nature: their usage as financial assets on the one side and their tight connection to the underlying blockchain structure on the other. In an effort to examine both components via a unified ap…
Examines how central bank policies affect stock markets and asset prices.
problem Understanding the impact of monetary policy on stock markets and asset prices.
method Used Taylor rule equations to analyze data from 1990 to 2020 for US and UK, testing with various econometric methods.
result Monetary policy can explain asset price volatility and output gap better than just inflation rate.
Our study proposes a new currency system to protect wealth from over-issued fiat and stablecoins.
problem The over-issuance of fiat and stablecoins undermines the stability of currency purchasing power.
method We introduce a parallel monetary system based on redeemable self-decaying money (RSDM) to provide a stable currency alternative.
result A parallel monetary system including RSDM, domestic fiat, and major reserve currencies can safeguard wealth and prevent the reverse Gresham law.
Bitcoin's monetary velocity is constrained by network friction, leading to significant utility contraction during shocks.
problem Bitcoin's monetary velocity is limited by network congestion, causing significant utility loss during economic shocks.
method Empirical analysis using Transaction Cost Index and threshold regression to identify structural breaks and velocity contraction.
result Network friction significantly reduces Bitcoin's monetary velocity, leading to a net utility contraction of -9.39% during shocks.
The paper discusses the role of monetary policy when potential output depends on the inflation rate. If the intention of the central bank is to maximize actual output growth, then it has to be credibly committed to a strict inflation targeting rule, and to take the MOGIR (the Maximizing Output Growth Inflation Rate) as…
QubitSwap improves DEX efficiency by reducing impermanent loss and slippage.
problem Challenges in decentralised exchanges, especially impermanent loss and slippage.
method Hybrid approach integrating external oracle price with internal pool dynamics, parameterized by z. result Reduction in impermanent loss and slippage compared to traditional DEX frameworks.
This study analyzes public debts and deficits between European countries. The statistical evidence here seems in general to reveal that sovereign debts and government deficits of countries within European Monetary Unification-in average- are getting worse than countries outside European Monetary Unification, in particu…
Venice used 'helicopter money' to subsidize during famine and plague, but it caused instability.
problem Subsidizing inhabitants during containment policies while preventing long-term debt increase.
method Net-worth helicopter money strategy, equivalent to monetary expansion generating losses to the issuer.
result The strategy caused much monetary instability and had to be quickly reversed.