scholarly journals Fuzzy Logic and Its Uses in Finance: A Systematic Review Exploring Its Potential to Deal with Banking Crises

Mathematics ◽  
2019 ◽  
Vol 7 (11) ◽  
pp. 1091 ◽  
Author(s):  
Sanchez-Roger ◽  
Oliver-Alfonso ◽  
Sanchís-Pedregosa
Keyword(s):  
Fuzzy Logic ◽  
Financial Markets ◽  
Web Of Science ◽  
Banking Crises ◽  
Real Economy ◽  
Academic Researchers ◽  
Regulatory Bodies ◽  
New Research ◽  
Financial Research ◽  
The Impact

The major success of fuzzy logic in the field of remote control opened the door to its application in many other fields, including finance. However, there has not been an updated and comprehensive literature review on the uses of fuzzy logic in the financial field. For that reason, this study attempts to critically examine fuzzy logic as an effective, useful method to be applied to financial research and, particularly, to the management of banking crises. The data sources were Web of Science and Scopus, followed by an assessment of the records according to pre-established criteria and an arrangement of the information in two main axes: financial markets and corporate finance. A major finding of this analysis is that fuzzy logic has not yet been used to address banking crises or as an alternative to ensure the resolvability of banks while minimizing the impact on the real economy. Therefore, we consider this article relevant for supervisory and regulatory bodies, as well as for banks and academic researchers, since it opens the door to several new research axes on banking crisis analyses using artificial intelligence techniques.

scholarly journals Understanding Technological Unemployment: A Review of Causes, Consequences, and Solutions

Societies ◽  
2021 ◽  
Vol 11 (2) ◽  
pp. 50
Author(s):  
Yuri Lima ◽  
Carlos Eduardo Barbosa ◽  
Herbert Salazar dos Santos ◽  
Jano Moreira de Souza
Keyword(s):  
Social Impact ◽  
New Technologies ◽  
Web Of Science ◽  
Developed Economies ◽  
Technological Unemployment ◽  
The Social ◽  
The Usa ◽  
The Subject ◽  
New Research ◽  
The Impact

Many studies have focused on estimating the impact of automation on work around the world with results ranging widely. Despite the disagreement about the level of impact that automation will have, experts agree that new technologies tend to be applied to every economic sector, thus impacting work regardless of substituting or complementing it. The purpose of this study is to move on from the discussion about the size of the impact of automation to understanding the main social impacts that automation will cause and what actions should be taken to deal with them. For this purpose, we reviewed literature about technological unemployment found in Scopus and Web of Science published since 2000, presenting an academic view of the actions necessary to deal with the social impact of automation. Our results summarize causes, consequences, and solutions for the technological unemployment found in the literature. We also found that the literature is mainly concentrated on the areas of economy, sociology, and philosophy, with the authors situated in developed economies such as the USA, Europe, and New Zealand. Finally, we present the research agenda proposed by the reviewed papers that could motivate new research on the subject.

scholarly journals Macroprudential policy and financial stability, role and tools

2020 ◽  
Vol 4 (4) ◽  
pp. 45-54
Author(s):  
Mehdi Bouchetara ◽  
Abdelkader Nassour ◽  
Sidi Eyih
Keyword(s):  
Financial Crisis ◽  
Financial Stability ◽  
Full Employment ◽  
Financial System ◽  
Policy Instruments ◽  
Banking Crises ◽  
Real Economy ◽  
Macroprudential Policy ◽  
Systemic Risks ◽  
The Impact

The aim of macroprudential policy is to ensure financial stability by avoiding the outbreak of banking crises, which have a dangerous effect on the economy. Is macroprudential policy effective in the face of banking crises and systemic risks? The macroprudential policy has received significant interest from policy-makers and researchers. A few developing countries were using macroprudential policy tools well before the 2008 financial crisis, but significant progress has been made thereafter in both emerging and industrialized economies to put in place specific institutional settings for macroprudential policy. The fundamental objective of macroprudential policy is to maintain the stability of the financial system by making it more resistant and preventing the risk build-up. The objective of this paper is to analyze the important role of macroprudential policy in ensuring overall financial stability. Since the financial crisis of 2008, macroprudential policy has been increasingly used across economies. These measures aim at smoothing financial cycles and thereby mitigating the impact on the real economy, thereby allowing monetary policy to focus on price stability and promote growth and full employment. Macroprudential policy instruments fall into two categories, depending on their purpose, namely, to prevent procyclicality or to enhance the resilience and soundness of the financial system against shocks. The first category of instruments is used to stop bubbles from forming and smooth cycles, i.e. to force the debt-equity of economic operators on an income basis to prevent unsustainable credit bubbles, or to require dynamic loss provisioning rules. The second category of macro-prudential policy is to improve the resilience to shocks, such as capital surcharges for systemic institutions or the requirement to hold liquid assets to cope with market panics, and to make the financial system less complex. Keywords: macroprudential policy, financial stability, tools and measures, systemic risks.

On the Volatility and Comovement of U.S. Financial Markets around Macroeconomic News Announcements

2009 ◽  
Vol 44 (6) ◽  
pp. 1265-1289 ◽  
Author(s):  
Menachem Brenner ◽  
Paolo Pasquariello ◽  
Marti Subrahmanyam
Keyword(s):  
Financial Markets ◽  
Multivariate Garch ◽  
Corporate Bond ◽  
Bond Markets ◽  
Real Economy ◽  
Macroeconomic News ◽  
Holding Period ◽  
Macroeconomic Information ◽  
Fundamental Information ◽  
The Impact

AbstractThe objective of this paper is to provide a deeper insight into the links between financial markets and the real economy. To that end, we study the short-term anticipation and response of U.S. stock, Treasury, and corporate bond markets to the first release of surprise U.S. macroeconomic information. Specifically, we focus on the impact of these announcements not only on the level, but also on the volatility and comovement of those assets’ returns. We do so by estimating several extensions of the parsimonious multivariate GARCH-DCC model of Engle (2002) for the excess holding-period returns on seven portfolios of these asset classes. We find that both the process of price formation in each of those financial markets and their interaction appear to be driven by fundamentals. Yet our analysis reveals a statistically and economically significant dichotomy between the reaction of the stock and bond markets to the arrival of unexpected fundamental information. We also show that the conditional mean, volatility, and comovement among stock, Treasury, and corporate bond returns react asymmetrically to the information content of these surprise announcements. Overall, the above results shed new light on the mechanisms by which new information is incorporated into prices within and across U.S. financial markets.

International Financial Integration, Investment and Economic Performance in Sub-Saharan African Countries

2011 ◽  
Vol 11 (4) ◽  
pp. 1850239 ◽  
Author(s):  
Abdullahi D. Ahmed
Keyword(s):  
Economic Growth ◽  
Financial Markets ◽  
Market Integration ◽  
Capital Investment ◽  
Financial Integration ◽  
Real Economy ◽  
African Countries ◽  
Financial Openness ◽  
International Financial Integration ◽  
The Impact

This paper examines the issues of international and regional financial integration and its impact taking a sample 25 SSA countries. The research tests both the direct and indirect channels through which the impact of financial integration works and is transmitted to the real economy. Directly, it is argued that financial openness affects economic growth through enabling access to foreign financial markets, increasing financial service efficiency and helping in diversification of risks and consumption smoothing. Thus while inducing additional capital investment, it also fosters macroeconomic discipline. Indirectly, the process of international financial integration facilitates the transfer of technological know-how, promotes trade and enhances specialization. While financial openness of recent years has laid a strong foundation to consolidate financial integration between regions and with international financial markets, we do not observe a robust link between financial openness and economic growth in SSA region. The empirical analysis considers the possibility of a positive indirect effect, and we report evidence in favour of the indirect transmission root. From our results, we observe a positive and statistically significant association between international financial integration and financial development under all its selected indicators. This finding suggests that financial capital market integration aids growth indirectly through promoting domestic financial markets. The study reports evidence suggesting that good institutions, higher level of human capital, and stable macroeconomic environment play an important role in mitigating the negative impacts of international financial openness.

scholarly journals Doing Better by Doing Good: Discussing the Value Potential of Selected “Just Companies”

2020 ◽  
Vol 11 (2) ◽  
pp. 40
Author(s):  
Hafiz Imtiaz Ahmad
Keyword(s):  
United States ◽  
Social Responsibility ◽  
The United States ◽  
Academic Researchers ◽  
Regulatory Bodies ◽  
The One ◽  
The Impact ◽  
Privately Held

On December 10, 2018, The JUST Capital Foundation, in partnership with Forbes, has released the 2018 ranking of the one hundred most socially "just" companies in the United States (Forbes; Just capital Foundation, 2018).This paper aims to discuss the value generation potential of the selected companies in this list by using (Ohlson, 1995) model. Our findings suggest that the in the context of USA, markets value social responsibility efficiently and the impact is visible in various sectors. These results may be of interest for investment analysts, academic researchers, Governments and regulatory bodies. In addition, we suggest that the results may indicate an area into which valuation professionals should invest time and thought as they assess the values of privately-held companies.

The Impact of EMU on European Financial Markets

2001 ◽  
Vol 62 (2) ◽  
pp. 83-95
Author(s):  
Ernst-Ludwig von Thadden
Keyword(s):  
Financial Markets ◽  
The Impact

U.S. Financial Markets Growth and the Real Economy

2013 ◽  
Author(s):  
Claire Y. C. Liang ◽  
David McLean ◽  
Mengxin Zhao
Keyword(s):  
Financial Markets ◽  
Real Economy ◽  
The Real
Sign in / Sign up

Export Citation Format

Share Document