Special Papers

Climate change has become a major topic of discussion at central banks and financial regulators. Key aspects of this debate include whether and how...

Global or international liquidity has moved to centre stage in recent international policy, research and market discussions. Contrary to the approach...

Despite the partial realignment of European long-term government bonds after the crisis in 2012, there has been some renewed divergence in yields in...

Obsession with short-term performance against market cap benchmarks preordains the dysfunctionality of asset markets. The problems start when trustees...

Risk and return go hand in hand as companion variables central to the teaching and practice of economics and finance. Standard theory and common sense...

The efficient market theory has failed to explain the market behavior and asset pricing of recent years. A new model that incorporates the principal...

The best way to resolve global financial instability is for the owners of capital to assert themselves, with sovereign funds well positioned to take...

Most of us have been brought up to believe that free markets combined with healthy competition deliver good outcomes. We also presume that what holds...

HFT has its benefits but also poses potential systemic risks. Bruno Biais and Paul Woolley discuss the need for deft regulation.

This chapter offers a new understanding of how financial markets work. The key departure from conventional theory is to recognize that investors do...