Tag Archive | "Central Banks"

Econophysics – related Remarks in Considering the Necessity of a Distribution Adjustment in the Eurozone Real Economy and Re-modeling its Financial System and Markets. Thermodynamics and Statistical Physics Approach

The term “Econophysics” was used for the first time by Eugene Stanley (physicist) in 1995 and represents the name of a rather new research domain that tries to apply the modeling standards in statistical physics to the more complicated world of economics and finance. This approach seems to be kind of appropriate and that because Economics is about people and refers to individuals. In this kind of respect we have to say that in a certain economic environment there are a lot of individuals existing, working and making commerce, so they may very much be assimilated with a system composed of a really big number of “particles” and obey to the same mathematical laws used to describe the time-behavior of such a system. In this article we use thermodinamics and statistical physics approach to describe some economic processes.

  Econophysics - related Remarks in Considering the Necessity of a Distribution Adjustment in the Eurozone Real Economy and Re-modeling its Financial System and Markets. Thermodynamics and Statistical P (832.0 KiB, 2,187 hits)

Posted in Economics, Knowledge Management, Volume II, Issue no. 1

The Macroeconomic Performance of Monetary Policies. A Stochastic Simulation Based on the Taylor’s Rule

In this paper we try to check if and how the macroeconomic performances induced by a Taylor’s rule based kind of monetary policy are (or not) more efficient than those effectively induced by the most important central bank’s monetary policies. In this kind of respect, we use a simple three equations model: a Phillips equation, an aggregate demand equation and a fixing rule for the main interest rate. Based on historical simulation as well as on stochastic simulation, it turns out that macroeconomic performances, in terms of inflation and productivity gap, would be more stable and efficient if the Taylor’s rule would be used by a certain central bank in fixing its main interest rate.

  The Macroeconomic Performance of Monetary Policies. A Stochastic Simulation Based on the Taylor’s Rule (939.5 KiB, 2,475 hits)

Posted in Economics, Issue no. 6