Thursday, June 18, 2015

Multiple Equilibria and Financial Crises

In May of this year, Jess Benhabib and I organized a conference at the Federal Reserve Bank of San Francisco with much help from Kevin Lansing at the Fed. Many thanks Kevin!

Kevin has just sent me a link to a website put together by the Fed with links to all of the papers, including slides of presenters and discussants plus a video of Karl Shell's dinner talk on the history of sunspots. The conference was sponsored by the NBER, UCLA and NYU. Many thanks to all who helped make this possible. 


  1. Fascinating, I read all the abstracts, fascinating.
    Think of G as a a network queueing problem. The next rung down the network from DC are the disparate sized states. So one can see the queue sizes are going to be statically unstable except for a few common mode transfers. So this network, a binary tree balanced by probability of passage per node, must re-aggregate into enough forms such that, over all, the queues are stable (balanced). It is going to do queue build up, rebalance and queue build up, etc. The solution is to bet the tree, bet its shape essentially. We need a betting bot who forms the most probable trees from a standard set of government receipts and expenses, then we bet the tree. Perfectly stable there after.

  2. Very interesting! Lots to look over. Thanks Roger.


Note: Only a member of this blog may post a comment.