A new mechanism to explain how a financial crisis happens

Dr. KOBAYASHI Teruyoshi, an associate professor at the Graduate School of Economics, Kobe University and Dr. Charles Brummitt of Columbia University have proposed a new model to predict a financial crisis (a chain of bankruptcies) using a multiplex network model in which debts with different priorities are mutually held by banks. Their results were published […]

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Traders’ hormones’ may destabilize financial markets

The hormones testosterone and cortisol may destabilise financial markets by making traders take more risks, according to a study. Researchers simulated the trading floor in the lab by having volunteers buy and sell assets among themselves. They measured the volunteers’ natural hormone levels in one experiment and artificially raised them in another. When given doses […]

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Study finds housing market cycles have become longer

Also finds extended housing busts can lead to severe recessions A statistical analysis of data from 20 industrial countries covering the period 1970 to 2012 suggests housing market pricing cycles — normal, boom and bust phases — have become longer over the last four decades. The study also found that longer down phases can have […]

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