Agricultural commodities, here considered as renewable products, are critical to many developing countries. Not only are their prices rising, along with price volatility on both spot and future markets, but also an increasing financialization of these products is making itself felt. All this may...

It appears that many boom-bust cycles are driven by linkages between the credit market and asset prices. Recently, in addition to credit, bonds and stocks, new complex securities have been developed, e.g., MBS, CDO and CDS, that act as instruments of financial intermediation and evaluation of...

The report Fiscal policies for a low-carbon economy makes an important contribution to our understanding of which fiscal policies work best and can be a guide to policy makers as they consider the most effective ways to achieve a low-carbon future. The report finds clear evidence that green...

Die gegenwärtigen Kontroversen zu den Auswirkungen eines Energieembargos gegen Russland, ausgelöst durch Russlands Krieg gegen die Ukraine, haben den Fokus auf die Verringerung der Abhängigkeit von fossilen Energieträgern und eine Neuordnung der Energieversorgung gelegt....

Over-borrowing and financial stress has recently become an important issue in macroeconomic and policy discussions in the US as well as in the EU. In this paper we study two regimes of financial stress. In a regime of high financial stress, stress shocks can have large and persistent impacts on...

We introduce a dynamic banking-macro model, which abstains from conventional mean-reversion assumptions and in which - similar to Brunnermeier and Sannikov (2010) - adverse asset-price movements and their impact on risk premia and credit spreads can induce instabilities in the banking sector. To...

The paper studies a credit market model with endogenous credit cost and debt constraints in which multiple candidates for steady state equilibria arise. We use dynamic programming (DP) with exible grid size to locate thresholds that separate different domains of attraction. More specifically, we...

We discuss two optimization problems from economics. The first is a model of optimal investment and the second is a model of resource management. In both cases the time horizon is infinite and the optimal control variables are continuous. Typically, in these optimal control problems multiple...