Archive for November 29th, 2017

An interdisciplinary model for macroeconomics

November 29, 2017

Andy Haldane and Arthur Turrell of Bank of England in this paper:

Macroeconomic modelling has been under intense scrutiny since the Great Financial Crisis, when serious shortcomings were exposed in the methodology used to understand the economy as a whole. Criticism has been levelled at the assumptions employed in the dominant models, particularly that economic agents are homogeneous and optimising and that the economy is equilibrating. This paper seeks to explore an interdisciplinary approach to macroeconomic modelling, with techniques drawn from other (natural and social) sciences. Specifically, it discusses agent-based modelling, which is used across a wide range of disciplines, as an example of such a technique. Agent-based models are complementary to existing approaches and are suited to answering macroeconomic questions where complexity, heterogeneity, networks, and heuristics play an important role.

 Lots of stuff to figure in the paper..
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As cryptocurrency debates heat up, traditional banknotes are revving up their technology as well

November 29, 2017

Nice interview of Dr Mang of Louisenthal (HT: J.P. Koning, who else?).

It is a subsidiary of technology company Giesecke & Devrient, is a recognised leading international manufacturer of banknote paper, security paper and security features. We know so little about these firms which are behind the world monetary economics.

Trends and Insights: There are various substrates on the market. Why should central banks choose the HybridTM banknote?
Dr. Thomas Mang: HybridTM banknotes are ideal for challenging conditions. By uniting cotton and polymer banknote technologies, we have succeeded in creating a perfect composition. HybridTM banknotes combine proven security with a considerably longer service life – and the result is a banknote that is slow to soil, does not become limp, and yet still enjoys the trust of the population because of its similarity to the well-known cotton banknotes.

What does the combination of different materials actually look like?

The easiest way to understand the special structure of a HybridTM banknote is to imagine a cross section. The inner cotton core is surrounded by a polymer film to which a special printable layer is applied.

This is how the picture is:

Wow..


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