Governments on both sides of the Atlantic have reacted with a raft of new regulations to the US subprime mortgage crisis. The article argues that while these new rules actually touch many of the incentive and information problems which were instrumental in creating the crisis, they only address...

Creditors, banks and bank regulators should evaluate whether a borrower is likely to default. I apply several techniques in the extensive mathematical literature of stochastic optimal control/dynamic programming to derive an optimal debt in an environment where there are risks on both the asset...

In this paper the author attempts an analysis of the current financial/economic crisis that is wider ranging and more fundamental than he has been able to find. He discusses alternatives to the financial bailouts and shows how the crisis could have been dealt with more efficiently and at little...

Bei der derzeitigen Finanzkrise handelt es sich nicht um eine "einfache" Vertrauenskrise, sondern um das Ergebnis längerfristiger Fehlentwicklungen. Wo liegen die Ursachen für diese Fehlentwicklungen? Warum sind dadurch viele Wirtschaftssubjekte schlechter gestellt? Welche Maßnahmen wurden...