Compounding COVID-19 and climate risks: The interplay of banks’ lending and government's policy in the shock recovery

We assess the individual and compounding impacts of COVID-19 and climate physical risks in the economy and finance, using the EIRIN Stock-Flow Consistent model. We study the interplay between banks’ lending decisions and government's policy effectiveness in the economic recovery process. We calibrate EIRIN on Mexico, being a country highly exposed to COVID-19 and hurricanes risks. By embedding financial actors and the credit market, and by endogenising investors’ expectations, EIRIN analyses the finance-economy feedbacks, providing an accurate assessment of risks and policy co-benefits. We quantify the impacts of compounding COVID-19 and hurricanes on GDP through time using a compound risk indicator. We find that procyclical lending and credit market constraints amplify the initial shocks by limiting firms’ recovery investments, thus mining the effectiveness of higher government spending. When COVID-19 and hurricanes compound, non-linear dynamics that amplify losses emerge, negatively affecting the economic recovery, banks’ financial stability and public debt sustainability

Role of the Ta buffer layer in Ta/MnN/CoFeB stacks for maximizing exchange bias

Dunz M, Meinert M. Role of the Ta buffer layer in Ta/MnN/CoFeB stacks for maximizing exchange bias. Journal of Applied Physics. 2020;128(15): 153902.Ta/MnN/CoFeB systems show high exchange bias of about 1800Oe at room temperature; however, their thermal stability is limited by nitrogen diffusion that occurs during annealing processes [Quarterman et al., Phys. Rev. Mater. 3, 064413 (2019) and Dunz et al., AIP Adv. 8, 056304 (2018)]. In this study, we investigate the consequences of nitrogen diffusion in Ta/MnN/CoFeB exchange bias stacks in dependence on the Ta buffer layer thickness. Furthermore, we test the effects of introducing a TaNx layer between MnN and Ta as a diffusion barrier. Our findings show that the Ta buffer layer plays a decisive role in determining the exchange bias in the Ta/MnN/CoFeB system. It acts as a crystallographic seed layer for better growth of MnN and as a nitrogen sink during the annealing process. We show that both of these functions are crucial for the outcome of high exchange bias. Additionally, our results reveal that the measures decreasing nitrogen diffusion, even though being beneficial in terms of thermal stability, mostly lead to decreased crystallinity and thus weaker exchange bias

Compounding COVID-19 and climate risks: The interplay of banks\u2019 lending and government's policy in the shock recovery

We assess the individual and compounding impacts of COVID-19 and climate physical risks in the economy and finance, using the EIRIN Stock-Flow Consistent model. We study the interplay between banks\u2019 lending decisions and government's policy effectiveness in the economic recovery process. We calibrate EIRIN on Mexico, being a country highly exposed to COVID-19 and hurricanes risks. By embedding financial actors and the credit market, and by endogenising investors\u2019 expectations, EIRIN analyses the finance-economy feedbacks, providing an accurate assessment of risks and policy co-benefits. We quantify the impacts of compounding COVID-19 and hurricanes on GDP through time using a compound risk indicator. We find that procyclical lending and credit market constraints amplify the initial shocks by limiting firms\u2019 recovery investments, thus mining the effectiveness of higher government spending. When COVID-19 and hurricanes compound, non-linear dynamics that amplify losses emerge, negatively affecting the economic recovery, banks\u2019 financial stability and public debt sustainability