Linear models reach their limitations in applications with nonlinearities in the data. In this paper we provide new empirical evidence on the relative Euro inflation forecasting performance of linear and nonlinear models. The well established and widely used univariate ARIMA and multivariate VAR...

Since the 1980s, financial crises have tended to reoccur with increasing frequency and growing intensity. They are endogenously generated by the established OTD (Originate-To-Distribute) model within the new finance-growth paradigm. Good finance fosters the correct allocation of financial...