tiply connected networks: When loops are present, the network is no longer singly connected and local propaga tion schemes will invariably run into trouble . We believe there are general undiscovered theorems about the performance of belief propagation on loopy DAGs. These theo rems, which may have

, Laurent Gauthier, Rick Green, John Griffin, Jean Helwege, Kris Jacobs, Chris Jones, Andrew Karolyi, Dilip Madan, David Mauer, Erwan Morellec, Federico Nardari, NR Prabhala, Tony Sanders, Sergei Sarkissian, Bill Schwert, Ken Singleton, Chester Spatt, René Stulz (the editor), Suresh Sundaresan, Haluk Unal

Treasury Secretary Paulson’s plan to reform the current hodgepodge regulatory setup in the United States marks a breakthrough in several respects. In this chapter, we first briefly summarise the proposals (section 39.1.) and then highlight their potential significance for the U.S. and for the international regulatory landscape (section 39.2.). We subsequently offer some comment informed by the 2007-2008 financial markets crisis, as well as by experiences in the Netherlands with the twin-peaks model that we helped introduce five years ago (section 39.3.). Finally, we zoom in on two aspects that will be important for a successful implementation of the proposals, namely the role of supervisory culture and skills (section 39.4.) and the need to spell out the relationship between prudential supervision, financial stability and monetary policy (section 39.5.).

comparison often is not straightforward, because the different models may be presented within rather different mathematical frameworks. This paper offers a comparative anatomy of two especially influential benchmarks for credit risk models, J.P. Morgan’s CreditMetrics and Credit Suisse Financial Product’s

A Þrm may decide to have some of its customers sign exclusive contracts in order to deprive a rival of the minimum viable size, exclude it from the market, and enjoy increased market power. If contracts are required to be simple enough, this strategy may induce inefficient exclusion even

permission in accordance with the provisions of the Copyright Act 1956 (as amended). Any person who does any unauthorised act in relation to this publication may be liable to criminal prosecution and civil claims for damages. ii david irving is the son of a Royal Navy commander. Imperfectly educated

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Simulation performance may be evaluated according to multiple quality measures that are in competition and their simultaneous consideration poses a conflict. In the current study we propose a practical framework for investigating such simulation performance criteria, exploring the inherent

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