A New Framework for Analyzing and Managing Macrofinancial Risks of an Economy

The high cost of international economic and financial crises highlights the need for a comprehensive framework to assess the robustness of national economic and financial systems. This paper proposes a new comprehensive approach to measure, analyze, and manage macroeconomic risk based on the theory and practice of modern contingent claims analysis (CCA). We illustrate how to use the CCA approach to model and measure sectoral and national risk exposures, and analyze policies to offset their potentially harmful effects. This new framework provides economic balance sheets for inter-linked sectors and a risk accounting framework for an economy. CCA provides a natural framework for analysis of mismatches between an entity's assets and liabilities, such as currency and maturity mismatches on balance sheets. Policies or actions that reduce these mismatches will help reduce risk and vulnerability. It also provides a new framework for sovereign capital structure analysis. It is useful for assessing vulnerability, policy analysis, risk management, investment analysis, and design of risk control strategies. Both public and private sector participants can benefit from pursuing ways to facilitate more efficient macro risk accounting, improve price and volatility discovery, and expand international risk intermediation activities.

Deactivation of biacetyl triplets by cyanocobaltate(III) complexes

The rate of electronic energy transfer from biacetyl triplets to Co(CN)_(5)(X)^(n–)(X = CN^–, MeCN, pyridine, N_(3)^–, H_(2)O, or SCN^–) is strongly dependent on the energy of the first spin-allowed d–d transition of Co(CN)_(5)(X)^(n–), and (for X = CN^–, N_(3)^–, and SCN^–) the direct and sensitized photosubstitution yields are the same, implying a common reactive state

Crop Fertilization on Texas High Plains Soils.

4 p

Identifying and Correcting Iron Deficiency in Field Crops.

2 p

Zinc Deficiency and Fertilization.

2 p

Thermal/structural analysis of a transpiration cooled nozzle

The 8-foot High Temperature Tunnel (HTT) at LaRC is a combustion driven, high enthalpy blow down wind tunnel. In Mar. 1991, during check out of the transpiration cooled nozzle, pieces of platelets were found in the tunnel test section. It was determined that incorrect tolerancing between the platelets and the housing was the primary cause of the platelet failure. An analysis was performed to determine the tolerance layout between the platelets and the housing to meet the structural and performance criteria under a range of thermal, pressure, and bolt preload conditions. Three recommendations resulted as a product of this analysis

Methods for the economic evaluation of petroleum exploration and synthetic fuels production : an application to Brazil

Thesis (Ph.D.)--Massachusetts Institute of Technology, Dept. of Earth and Planetary Science, 1982.Microfiche copy available in Archives and Science.Includes bibliographies.by Dale Franklin Gray.Ph.D

New Framework for Measuring and Managing Macrofinancial Risk and Financial Stability

This paper proposes a new approach to improve the way central banks can analyze and manage the financial risks of a national economy. It is based on the modern theory and practice of contingent claims analysis (CCA), which is successfully used today at the level of individual banks by managers, investors, and regulators. The basic analytical tool is the risk-adjusted balance sheet, which shows the sensitivity of the enterprise’s assets and liabilities to external “shocks.” At the national level, the sectors of an economy are viewed as interconnected portfolios of assets, liabilities, and guarantees—some explicit and others implicit. Traditional approaches have difficulty analyzing how risks can accumulate gradually and then suddenly erupt in a full-blown crisis. The CCA approach is well-suited to capturing such “non-linearities” and to quantifying the effects of asset-liability mismatches within and across institutions. Risk-adjusted CCA balance sheets facilitate simulations and stress testing to evaluate the potential impact of policies to manage systemic risk.