Please use this identifier to cite or link to this item:
https://www.um.edu.mt/library/oar/handle/123456789/71859| Title: | Income from speculative financial transactions will always lead to macro-economic instability |
| Authors: | Schädler, Tobias Grabinski, Michael |
| Keywords: | Dynamics Finance Transaction systems (Computer systems) Values -- Economic aspects |
| Issue Date: | 2015 |
| Publisher: | ISMASYSTEMS Scientific Research |
| Citation: | Schädler, T., & Grabinski, M. (2015). Income from speculative financial transactions will always lead to macro-economic instability. International Journal of Finance, Insurance and Risk Management, 5(3), 922-932. |
| Abstract: | Starting with a macro-economic model based upon the NAIRU (the nonaccelerating inflation rate of unemployment), we show that, in a world with no (speculative) financial transactions, the macro- economy shows a stable equilibrium state. Including income from (speculative) financial transactions will lead to instability if the amount is sufficiently large. Considering the present amount of financial transactions, stability is impossible. Therefore, further financial crashes are not only likely but inevitable. |
| URI: | https://www.um.edu.mt/library/oar/handle/123456789/71859 |
| Appears in Collections: | Volume 5, Issue 3, 2015 |
Files in This Item:
| File | Description | Size | Format | |
|---|---|---|---|---|
| Income_from_speculative_financial_transactions_will_always_lead_to_macro.pdf | 1.03 MB | Adobe PDF | View/Open |
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