The processes of pattern recognition, hypothesis formation and acceptance or refutation over time as part of the process of acquiring new, or modifying existing, knowledge, behaviors, skills, values, or preferences
The application of experimental methods to study economic questions using controlled, scientifically-designed experiments to test economic theories under laboratory conditions
The study of how the aggregate economy behaves in matters such as inflation, price levels, rate of growth, national income, gross domestic product and changes in unemployment
The frameworks for analyzing money in its functions as a medium of exchange, store of value, and unit of account and the effects of monetary systems, and associated financial institutions
Application of game theory to evolving populations using a framework of contests, strategies, and analytics into which Darwinian competition can be modelled
Using computational systems to model and draw solutions from tools such as discrete algorithms, artificial intelligence, linear programming, game theory and discrete optimization
This paper develops a model that jointly accounts for the missing disinflation in the wake of the Great Recession and the subsequently observed inflation-less recovery. The key mechanism works through heterogeneous expectations that may durably lose their anchorage to the central bank (CB)’s target and coordinate on particularly persistent...
We provide experimental evidence on coordination within large groups that could proxy the atomistic nature of real-world markets. We use a bank-run game where the two pure-strategy equilibria can be ranked by payoff and risk- dominance and a random sequence of public announcements introduces stochastic sunspot equilibria. We find...
We model the introduction of a new payment method, e.g., e-money, that competes with an existing payment method, e.g., cash. The new payment method involves relatively lower per-transaction costs for both buyers and sellers, but sellers must pay a fixed fee to accept the new payment method...
“If you owe your bank a hundred pounds, you have a problem. But if you owe a million, it has.”
“All Money is a matter of belief.”
“No one can be a great thinker who does not recognize that as a thinker it is his first duty to follow his intellect to whatever conclusions it may lead.”
“Political Economy or Economics is a study of mankind in the ordinary business of life.”