The credit crises experienced in the US in year 2008 is labeled as perhaps the most significant crises since the great depression. The roots of the crises were found in the default of the sub-prime mortgages and the failure occurred in both the US and the UK. Due to the integrated nature of international financial systems the spillover impacted many countries as the economies in Asia and Europe were purchasers of the sub-prime mortgages that originated in both UK and (...) US. The impact of the credit crises in Canada is of unique importance due to the close proximity to US, and both the US and Canada being of great strategic importance to each other as well as one of the largest trading partners.Even though the international financial credit crises adversely impacted many countries, the evidence that has come across recent years point towards the conclusion that Canada was able to weather the crises much better than many other countries. (shrink)

Abstract: Ensuring the proactive detection of transaction risks is paramount for financial institutions, particularly in the context of managing credit scores. In this study, we compare different machine learning algorithms to effectively and efficiently. The algorithms used in this study were: MLogisticRegressionCV, ExtraTreeClassifier,LGBMClassifier,AdaBoostClassifier, GradientBoostingClassifier,Perceptron,RandomForestClassifier,KNeighborsClassifier,BaggingClassifier, DecisionTreeClassifier, CalibratedClassifierCV, LabelPropagation, Deep Learning. The dataset was collected from Kaggle depository. It consists of 164 rows and 8 columns. The best classifier with unbalanced dataset was the LogisticRegressionCV. The Accuracy 100.0%, precession 100.0%,Recall100.0% and the (...) F1-score 100.0%. However, the best classifier with balanced dataset was the LogisticRegressionCV. The Accuracy 100.0%, precession 100.0%, Recall 100.0% and the F1-score 100.0%. (shrink)

The recent wave of generative AI (GAI) systems like Stable Diffusion that can produce images from human prompts raises controversial issues about creatorship, originality, creativity and copyright. This paper focuses on creatorship: who creates and should be credited with the outputs made with the help of GAI? Existing views on creatorship are mixed: some insist that GAI systems are mere tools, and human prompters are creators proper; others are more open to acknowledging more significant roles for GAI, but most conceive (...) of creatorship in an all-or-nothing fashion. We develop a novel view, called CCC (collective-centered creation), that improves on these existing positions. On CCC, GAI outputs are created by collectives in the first instance. Claims to creatorship come in degrees and depend on the nature and significance of individual contributions made by the various agents and entities involved, including users, GAI systems, developers, producers of training data and others. Importantly, CCC maintains that GAI systems can sometimes be part of a co-creating collective. We detail how CCC can advance existing debates and resolve controversies around creatorship involving GAI. (shrink)

Leising and colleagues propose a 10-step checklist that they argue will facilitate “a better personality science.” Although we agree with many of the proposed steps, whether the checklist separates “good research” from bad is an empirical matter. A critical component of Leising and colleagues’ steps toward improving scientific standards in personality center around consensus building. There are several critical ways in which the methods for building consensus in psychology could have unintended negative consequences. Creating a better science requires a shift (...) in academia’s reward structures. The current system rewards producing more publications with little reference to contributions to those publications. CRediT offers a simple yet effective way of weighing the quality of researcher contributions rather than quantity alone. Finally, the target article is the latest to join in calling for more formal theory. If psychology is to improve theory, then psychologists must be trained in theory. These systemic issues are pervasive and cannot be fixed without changing the evaluation system of academia and subsequently the reward system that supports it. Including the CRediT taxonomy in CVs offers a simple yet effective way of weighing the quality of researcher contributions rather than quantity alone. (shrink)

In this paper a Knowledge-Based System (KBS) for determining the appropriate students major according to his/her preferences for sophomore student enrolled in the Faculty of Engineering and Information Technology in Al-Azhar University of Gaza was developed and tested. A set of predefined criterions that is taken into consideration before a sophomore student can select a major is outlined. Such criterion as high school score, score of subject such as Math I, Math II, Electrical Circuit I, and Electronics I taken (...) during the student freshman year, number of credits passed, student cumulative grade point average of freshman year, among others, were then used as input data to KBS. KBS was designed and developed using Simpler Level Five (SL5) Object expert system language. KBS was tested on three generation of sophomore students from the Faculty of Engineering and Information Technology of the Al-Azhar University, Gaza. The results of the evaluation show that the KBS is able to correctly determine the appropriate students major without errors. (shrink)

Choice Based Credit System (CBCS) is a modern curriculum system of higher education in India which was first introduced by the Academic and Administrative Reforms committee of University Grant Commission (UGC) in 2008 headed by Prof. A. Gnanam. It is a system that promises to bring in holistic development of an individual by providing flexible and multi-disciplinary learning experience. The CBCS provides a cafeteria type approach in which the students can take courses of their choice, learn (...) at their own pace, undergo additional courses and acquire more than the required credits, and adopt an interdisciplinary approach to learning. The courses shall be evaluated on the grading system, which is considered to be better than the conventional marks system. To make the present curriculum uniform, international standard and more developed UGC implement the Choice Based Credit System at higher education level. There are different Universities in the country that have adopted this system through modifying up to 30% of core papers’ syllabus under the proposed UGC curriculum. The major objectives of the study were to explore the nature of the present CBCS curriculum of Zoology and measure the perception level of the students on the present CBCS curriculum of Zoology of Vidyasagar University. The major Findings of the study were suggested that the Vidyasagar University followed the UGC recommended curriculum pattern for framing the CBCS curriculum of Zoology and it has also been found that there was no significant difference in the male and female students’’ perception about CBCS curriculum of zoology at undergraduate level in Vidyasagar University. -/- . (shrink)

The convergence of computing, sensing, and communication technology will soon permit large-scale deployment of self-driving vehicles. This will in turn permit a radical transformation of traffic control technology. This paper makes a case for the importance of addressing questions of social justice in this transformation, and sketches a preliminary framework for doing so. We explain how new forms of traffic control technology have potential implications for several dimensions of social justice, including safety, sustainability, privacy, efficiency, and equal access. Our central (...) focus is on efficiency and equal access as desiderata for traffic control design. We explain the limitations of conventional traffic control in meeting these desiderata, and sketch a preliminary vision for a next-generation traffic control tailored to address better the demands of social justice. One component of this vision is cooperative, hierarchically distributed self-organization among vehicles. Another component of this vision is a priority system enabling selection of priority levels by the user for each vehicle trip in the network, based on the supporting structure of non-monetary credits. (shrink)

This book is an edited collection of original research papers on the digital revolution of the public and governance. It covers cyber governance in Finland, and the securitization of cyber security in Finland. It investigates the cases of Brexit, the 2016 US presidential election of Donald Trump, the 2017 presidential election of Volodymyr Zelensky, and Brexit. It examines the environmental concerns of climate change and greenwashing, and the impact of digital communication giving rise to the #MeToo and Incel movements. It (...) considers how digitilization can serve to emancipate women through ride-sharing, and how it leads to the question of robot rights. It considers fake news and algorithmic governance with respect to case studies of the Chinese social credit system, the US FICO credit score, along with Facebook, Twitter, Cambridge Analytica and the European effort to regulate and protect data usage. (shrink)

Modernity is impregnated by rationality instead of natural reason, technical intelligence, and an ever more vociferous social communication. Seemingly, this interrelationship has absorbed and dissolved the traditional knitting stuff of society, known as its social tie. This image should be incorrect and insufficient. Since about thirty years, the Western world has seen the upcoming of a social mechanism strengthening and curtailing the person, or subject, to leave a portion of his conscient faculties to others, on one side, in order to (...) be rewarded in the social field, on the other side. This is explained by means of recursion to (i) the proper explanation of the energy field, its polarity, (ii) the census/reward mechanism itself, (iii) a critical comparison with the Habermasian discourse theory, and (iv) finally and in the onset an investigation into the Chinese system, in particular the so-called Social Credit System and its circumscription. (shrink)

Vietnam has seen fast-rising debts, both domestic and external, in recent years. This paperreviews the literature on credit market in Vietnam, providing an up-to-date take on the domesticlending and borrowing landscape. The study highlights the strong demand for credit in both therural and urban areas, the ubiquity of informal lenders, the recent popularity of consumer financecompanies, as well as the government’s attempts to rein in its swelling public debt. Given thehigh level of borrowing, which is fueled by consumerism (...) and geopolitics, it is inevitable that theamount of debt will soon be higher than the saving of the borrowers. Unlike the conventional wisdom that creditors have more bargaining power over the borrowers, we suggest that—albeitlacking a quantitative estimation—when the debts pile up so high that the borrowers could not repay, the power dynamics may reverse. In this new politics of debt, the lenders fear to lose the money's worth and continue to lend and feed the insolvent debtors. The result is a toxic lending/borrowing market and profound lessons, from which the developing world could learn. (shrink)

The objective of this paper is to examine the role of the banking system in the growth of the Vietnamese economy in the process of the transition that started in the early 1990s. An ARDL approach-based multivariate regression technique is applied to shed light on the impact on the growth of banking development, which is measured by broad money and bank credit. The empirical findings confirm a positive long-term effect of banking development on growth, reflecting the important role (...) of the banking system in a typical bank-based financial system in mobilizing and supplying capital to the economy, thus contributing to growth throughout the process of economic transition. The empirical findings also indicate a nonlinear effect and a diminishing marginal effect of banking development in the sub-period 2007–2020. The thresholds for the two measures of banking development are estimated to be around 107% and 101% of the GDP, respectively. This finding suggests that bank credit expansion needs to be closely controlled to be adaptive to the capital-absorptive capacity of the economy. To a certain extent, this finding is also an indicator of the ongoing extensive growth model adopted in Vietnam, which relies heavily on the quantity of invested capital. (shrink)

While, prima facie, virtue/credit approaches in epistemology would appear to be in tension with distributed/extended approaches in cognitive science, Pritchard () has recently argued that the tension here is only apparent, at least given a weak version of distributed cognition, which claims merely that external resources often make critical contributions to the formation of true belief, and a weak virtue theory, which claims merely that, whenever a subject achieves knowledge, his cognitive agency makes a significant contribution to the formation (...) of a true belief. But the significance of the role played by the subject's cognitive agency in distributed cognitive systems is in fact highly variable: at one extreme, formation of a true belief seems clearly to be significantly creditable to the subject's agency; at the other extreme, however, the subject's agency plays such a peripheral role that it is at best unclear whether it should receive significant credit for formation of a true belief. The compatibility of distributed cognition and virtue epistemology thus turns on what it takes for a contribution to the formation of true belief to count as significant. This article argues that the inevitable vagueness of this notion suggests retreating from virtue epistemology to a form of process reliabilism and explores the prospects for a distributed reliabilist epistemology designed to fit smoothly with distributed cognition. In effect, distributed reliabilism radicalizes Goldberg's recent extended reliabilist view by allowing the process the reliability of which determines the epistemic status of a subject's belief to extend to include not only processing performed by other subjects but also processing performed by non-human technological resources. (shrink)

This paper presents a new model for pricing OTC derivatives subject to collateralization. It allows for collateral posting adhering to bankruptcy laws. As such, the model can back out the market price of a collateralized contract. This framework is very useful for valuing outstanding derivatives. Using a unique dataset, we find empirical evidence that credit risk alone is not overly important in determining credit-related spreads. Only accounting for both collateral arrangement and credit risk can sufficiently explain unsecured (...) credit costs. This finding suggests that failure to properly account for collateralization may result in significant mispricing of derivatives. We also empirically gauge the impact of collateral agreements on risk measurements. Our findings indicate that there are important interactions between market and credit risk. (shrink)

1. Law and morals as two systems of norms, and the inner morality of law 2. Law as a value bearer and as a mere external indicator 3. The inner and external moral credit of legislator 4. The inner morality of law. As to the last paragraph, the most striking feature of the inner morality of law is that it is such a possible characteristic, surplus quality which is not a sine qua non, which law is conceivable without. However, (...) it is a question whether law can long do without it? In principle, the legislator is free in deciding on what legal consequence he attaches to what course of conduct14 and it is also desirable that legal concepts be freed from moral overtones. Nevertheless, the legal complex cannot be torn out of its social context, nor can it steadily conflict with other complexes (religions, moral, or political values, norms and ideologies) law is to develop in living interrelationship with. Otherwise, it is subject to danger that (I) law-observance in average cases is weakened; (2) the reified functioning of and approach to law are strengthened and make law alienated; and (3) it blurs the social objectives the law intends to serve and, especially in hard cases, makes its application rootless and floating. A pathological situation only becomes more pathological, if the pathology of contents is accompanied by the pathology of means. Or, it brings the promise of real solution closer, if the adequateness of means also provides, by the strength of publicity, for the direct mobilization of society. That explains why it is a topical question what I have proposed to term the inner morality of law. [For the text, see my L&Ph, 77–89] . (shrink)

Clearing algorithms are at the core of modern payment systems, facilitating the settling of multilateral credit messages with (near) minimum transfers of currency. Traditional clearing procedures use batch processing based on MILP - mixed-integer linear programming algorithms. The MILP approach demands intensive computational resources; moreover, it is also vulnerable to operational risks generated by possible defaults during the inter-batch period. This paper presents TORC3 - the Token-Ring Clearing Algorithm for Currency Circulation. In contrast to the MILP approach, TORC3 is (...) a real time heuristic procedure, demanding modest computational resources, and able to completely shield the clearing operation against the participating agents’ risk of default. (shrink)

Spinoza ’s letter of June 2, 1674 to his friend Jarig Jelles addresses several distinct and important issues in Spinoza ’s philosophy. It explains briefly the core of Spinoza ’s disagreement with Hobbes’ political theory, develops his innovative understanding of numbers, and elaborates on Spinoza ’s refusal to describe God as one or single. Then, toward the end of the letter, Spinoza writes: With regard to the statement that figure is a negation and not anything positive, it is obvious that (...) matter in its totality, considered without limitation [indefinitè consideratam], can have no figure, and that figure applies only to finite and determinate bodies. For he who says that he apprehends a figure, thereby means to indicate simply this, that he apprehends a determinate thing and the manner of its determination. This determination therefore does not pertain to the thing in regard to its being [esse]; on the contrary, it is its non-being [non-esse]. So since figure is nothing but determination, and determination is negation [Quia ergo figura non aliud, quam determinatio, et determinatio negatio est], figure can be nothing other than negation, as has been said. Arguably, what is most notable about this letter is the fate of a single subordinate clause which appears in the last sentence of this passage: et determinatio negatio est. That clause was to be adopted by Hegel and transformed into the slogan of his own dialectical method: Omnis determinatio est negatio. Of further significance is the fact that, while Hegel does credit Spinoza with the discovery of this most fundamental insight, he believes Spinoza failed to appreciate the importance of his discovery. The issue of negation and the possibility of self-negation stand at the very center of the philosophical dialogue between the systems of Spinoza and Hegel, and in this paper I will attempt to provide a preliminary explication of this foundational debate between the two systems. In the first part of the paper I will argue that the “determination is negation” formula has been understood in at least three distinct senses among the German Idealists, and as a result many of the participants in the discussion of this formula were actually talking past each other. The clarification of the three distinct senses of the formula will lead, in the second part of the paper, to a more precise evaluation of the fundamental debate between Spinoza and Hegel regarding the possibility of self-negation. In this part I will evaluate the validity of each interpretation of the determination formula, and motivate the positions of the various participants in the debate. (shrink)

We describe an experimental approach toward implementing a commonsense "microtheory" for buying and selling. Our prototype system characterizes how intelligent agents hold items and money, how they buy and sell items, and the way money and items are transferred. The ontology of the system includes money (cash, check, credit card), agents (people, organizations), items (movable, real estate, service), barter, and the notions of transfer, loan, buying by installments, profit, and loss.

Context: The majority of contemporary enactivist work is influenced by the philosophical biology of Hans Jonas. Jonas credits all living organisms with experience that involves particular “existential” structures: nascent forms of concern for self-preservation and desire for objects and outcomes that promote well-being. We argue that Jonas’s attitude towards living systems involves a problematic anthropomorphism that threatens to place enactivism at odds with cognitive science, and undermine its legitimate aims to become a new paradigm for scientific investigation and understanding of (...) the mind. Problem: Enactivism needs to address the tension between its Jonasian influences and its aspirations to become a new paradigm for cognitive science. By relying on Jonasian phenomenology, contemporary enactivism obscures alternative ways in which phenomenology can be more smoothly integrated with cognitive science. Method: We outline the historical relationship between enactivism and phenomenology, and explain why anthropomorphism is problematic for a research program that aspires to become a new paradigm for cognitive science. We examine the roots of Jonas’s existential interpretation of biological facts, and describe how and why Jonas himself understood his project as founded on an anthropomorphic assumption that is incompatible with a crucial methodological assumption of scientific enquiry: the prohibition of unexplained natural purposes. We describe the way in which phenomenology can be integrated into Maturana’s autopoietic theory, and use this as an example of how an alternative, non-anthropomorphic science of the biological roots of cognition might proceed. Results: Our analysis reveals a crucial tension between Jonas’s influence on enactivism and enactivism’s paradigmatic aspirations. This suggests the possibility of, and need to investigate, other ways of integrating phenomenology with cognitive science that do not succumb to this tension. Implications: In light of this, enactivists should either eliminate the Jonasian inference from properties of our human experience to properties of the experience of all living organisms, or articulate an alternative conception of scientific enquiry that can tolerate the anthropomorphism this inference entails. The Maturanian view we present in the article’s final section constitutes a possible framework within which enactivist tools and concepts can be used to understand cognition and phenomenology, and that does not involve a problematic anthropomorphism. Constructivist content: Any constructivist approach that aims for integration with current scientific practice must either avoid the type of anthropomorphic inference on which Jonas bases his work, or specify a new conception of scientific enquiry that renders anthropomorphism unproblematic. (shrink)

Galiani discusses a subject much debated in the eighteenth century, namely, the nature of the currency. He also includes considerations of economic theory and political philosophy around the main motif. He supports the following theses of monetary theory: currency has the function of a sort of register of credits that every individual can have towards the warehouses of goods of which the society is supplied, and precisely in the measure of the contribution he has given to their supply; the metallic (...) currency has the merit, with respect to a hypothetical system of artificial accounting, to be safe from frauds and not to require a bureaucratic apparatus; the value of currency depends on the value of metals, not on legislative interventions. (shrink)

The most cursory examination of the history of artificial intelligence highlights numerous egregious claims of its researchers, especially in relation to a populist form of ‘strong’ computationalism which holds that any suitably programmed computer instantiates genuine conscious mental states purely in virtue of carrying out a specific series of computations. The argument presented herein is a simple development of that originally presented in Putnam’s (Representation & Reality, Bradford Books, Cambridge in 1988 ) monograph, “Representation & Reality”, which if correct, has (...) important implications for turing machine functionalism and the prospect of ‘conscious’ machines. In the paper, instead of seeking to develop Putnam’s claim that, “everything implements every finite state automata”, I will try to establish the weaker result that, “everything implements the specific machine Q on a particular input set ( x )”. Then, equating Q ( x ) to any putative AI program, I will show that conceding the ‘strong AI’ thesis for Q (crediting it with mental states and consciousness) opens the door to a vicious form of panpsychism whereby all open systems, (e.g. grass, rocks etc.), must instantiate conscious experience and hence that disembodied minds lurk everywhere. (shrink)

What constitutes a scientific discovery? What role do discoveries play in science, its dynamics and social practices? Must every discovery be attributed to an individual discoverer (or a small number of discoverers)? The paper explores these questions by first critically examining extant philosophical explications of scientific discovery—the models of scientific discovery, propounded by Kuhn, McArthur, Hudson, and Schindler. As a simple, natural and powerful alternative, we proffer the “change-driver model”: in a nutshell, it takes discoveries to be cognitive scientific results (...) that have epistemically advanced science. The model overcomes the shortcomings of its precursors, whilst preserving their insights. We demonstrate its intensional and extensional superiority, especially with respect to the link between scientific discoveries and the dynamics of science, as well as the award system of science. Both as an illustration, and as an application to a recent scientific and political controversy, we apply the considered models of discovery to one of the most momentous discoveries of science: the expansion of the universe. We oppose the 2018 proposal of the International Astronomers’ Union as too simplistic vis-`a-vis the historical complexity of the episode. The change- driver model yields a more nuanced and circumspect verdict: (i) The redshift-distance relation shouldn’t be named the “Hubble-Lemaître Law”, but “Slipher-Lundmark-Hubble-Humason Law”; (ii) Its interpretation in terms of an expanding universe, however, Lemaître ought to be given credit for; but (iii) The establishment of the expansion of the universe, as an evidentially sufficiently warranted result, is a communal achievement, emerging in the 1950s or 1960s. (shrink)

This brief systems back-casting of statistical post portems on the US economy documents the quantitative heuristic errors of financial decision-making; the need for sound monetary reform is explained.

Ralph Cudworth’s The True Intellectual System of the Universe (1678) is credited with the first instance of the English word “consciousness” used in a distinctively philosophical sense. While Cudworth says little in the System about the nature of consciousness, he has more to say in his (largely unpublished) freewill manuscripts. I argue that, in these manuscripts, Cudworth distinguishes two kinds of consciousness, which I call “bare consciousness” and “reflective consciousness”. What both have in common is that each is (...) a kind of reflection or reflexive perception that therefore involves a “duplication” of the soul as both subject and object. While it is less clear how Cudworth takes these two kinds of consciousness to differ, I argue that the central difference for Cudworth is that, whereas bare consciousness is always directed towards individual cogitations, reflective consciousness is the kind of consciousness that the soul achieves through reflection upon itself as a whole. As a result, reflective consciousness introduces a unity into our experience that is not present at the level of bare consciousness. (shrink)

The jurisprudence under international human rights treaties has had a considerable impact across countries. Known for addressing complex agendas, the work of expert bodies under the treaties has been credited and relied upon for filling the gaps in the realization of several objectives, including the peace and security agenda. -/- In 1982, the Human Rights Committee (ICCPR), in a General Comment observed that “states have the supreme duty to prevent wars, acts of genocide and other acts of mass violence ... (...) Every effort … to avert the danger of war, especially thermonuclear war, and to strengthen international peace and security would constitute the most important condition and guarantee for the safeguarding of the right to life.” Over the years, all treaty bodies have contributed in this direction, endorsing peace and security so as “to protect people against direct and structural violence … as systemic problems and not merely as isolated incidents …”. A closer look at the jurisprudence on peace and security, emanating from treaty monitoring mechanisms including state periodic reports, interpretive statements, the individual communications procedure, and others, reveals its distinctive nature. (shrink)

While Hume had a favorable opinion of the new commercial society, Reid envisioned a utopian system that would eliminate private property and substitute the profit incentive with a system of state-conferred honors. Reid’s predilection for a centralized command economy cannot be explained by his alleged discovery of market failures, and has to be considered in the context of his moral psychology. Hume tried to explain how the desire for gain that motivates the merchant leads to industry and frugality. (...) These, in their turn, benefit all society. Reid still saw the desire for money as a degenerate form of the desire for power. The contrast between Hume and Reid, however, has not to be taken too far. On some particular matters of economic policy, such as paper credit, Hume and Reid eventually came to similar views. (shrink)

Michael Dorf and Charles Sabel invoke John Dewey’s “pragmatist account of thought and action” as the “backdrop” for their theory of democratic experimentalism, an approach to governance emphasizing judicially monitored local decision making within a system of decentralized administrative authority. Little credit for influence is given to the Austrian economist Friedrich Hayek and his classic liberal ideas. Indeed, Sabel has been highly critical of Hayek’s ideas. Yet, an argument can be made that (i) democratic experimentalism is at least (...) loosely Hayekian and (ii) a combined Deweyan-Hayekian analysis of Dorf and Sabel’s theory reveals some critical mistakes. One implication of my analysis is that Dewey and Hayek’s ideas are more compatible than most democratic theorists and political philosophers will admit. Evidence of this compatibility opens the door for creating and evaluating democratic experiments within a Deweyan-Hayekian theoretical framework, as well as extending the framework to other areas of political inquiry. (shrink)

El artículo propone entender la precariedad en un análisis que sobrepase las condiciones laborales, y que observe la formación de un ciclo vital atravesado por sistemas generales de administración de los medios de subsistencia. Estos sistemas en el contexto neoliberal se han transformado profundamente a través del crédito y la capitalización individual. De modo que el conjunto vital de la población queda precarizado. Se trata entonces del análisis no de trabajos precarios, sino de formas de vida precarizadas. -/- The article (...) proposes that it is necessary to situate the precariousness in an analysis that exceed the working conditions, and to observe the formation of a Lifecycle that is criss-crossed by General Administration of livelihood systems. These systems in the neo-liberal context have been deeply transformed through credit and individual capitalization. So that the life of the population is precarious. It is then not precarious jobs, but life precarized producers forms analysis. (shrink)

The necessity for a government “lender of last resort” has been advanced as a justification for central banking. In this paper, I compare lending practices under central banking with those that would be likely to exist under a system of fractional-reserve free banking (FRFB). To do this I examine the underlying nature of banks as warehousing and credit-granting institutions and consider how redemption runs can arise as a consequence of fractional reserves in this system. Following the work (...) of Thornton and Bagehot, I describe principles of prudent lending that can be used to stem a redemption run when it arises. I examine the market incentives that apply under FRFB and how these incentives are perverted under a system of central banking. I find that a government central bank is not well-placed to lend according to prudent standards, and in fact is likely to use its power to pursue political goals that are at odds with prudent lending. I examine the US financial crisis and the actions of the Federal Reserve System to illustrate this view. (shrink)

Gilles Deleuze was born in 1925, and died by his own hand 70 years later. He taught philosophy in the French lycée system, at the University of Lyon, and then—after the institutional fragmentation that was the government‟s response to the student-driven near-revolution of 1968—at the University of Paris VIII (Vincennes). Although his work is only now coming to prominence in the Anglophone world, he has achieved great notoriety in France: he is widely credited with inaugurating the post-structuralist movement with (...) his 1962 Nietzsche and Philosophy, as well as with providing its definitive text, the 1972 Anti-Oedipus (co-written with Félix Guattari). His colleague and friend, Michel Foucault, has gone so far as to suggest that 'perhaps one day this century will be known as Deleuzian'. (shrink)

Currently, under the conditions of permanent financial risks that hamper the sustainable economic growth in the financial sector, the development of evaluation and risk management methods both regulated by Basel II and III and others seem to be of special importance. The reputation risk is one of significant risks affecting reliability and credibility of commercial banks. The importance of reputation risk management and the quality of their assessment remain relevant as the probability of decrease in or loss of business reputation (...) influences the financial results and the degree of customers’, partners’ and stakeholders’ confidence. By means of imitating modeling based on Bayesian Networks and the fuzzy data analysis, the article characterizes the mechanism of reputation risk assessment and possible losses evaluation in banks by plotting normal and lognormal distribution functions. Monte-Carlo simulation is used to calculate the probability of losses caused by reputation risks. The degree of standardized histogram similarity is determined on the basis of the fuzzy data analysis applying Hamming distance method. The tree-like hierarchy based on the OWA-operator is used to aggregate the data with Fishburne's coefficients as the convolution scales. The mechanism takes into account the impact of criteria, such as return on equity, goodwill value, the risk assets ratio, the share of the productive assets in net assets, the efficiency ratio of interest bearing liabilities, the risk ratio of credit operations, the funding ratio and reliability index on the business reputation of the bank. The suggested methods and recommendations might be applied to develop the decision-making mechanism targeted at the implementation of reputation risk management system in commercial banks as well as to optimize risk management technologies. (shrink)

Thomas Hobbes wrote in his Leviathan that money exchanging hands, monetary policies, activities, and transactions are the blood of the “Leviathan” - the eponymous subject of the book. Hobbes writes that this Leviathan's “blood” includes the “collectors, receivers, and treasurers; of the second are the treasurers again, and the officers appointed for payment of several public or private ministers.” Hobbes, follows this with an analogy of a living man, stating that this “artificial man maintains his resemblance with the natural [man]; (...) whose veins, receiving the blood from the several parts of the body, carry it to the heart; where, being made vital, the heart by the arteries sends it out again, to enliven and enable for motion all the members of the same.” Hobbes maintains a parallel between the natural man and what he calls the “artificial man”, the state throughout his Leviathan. -/- Ultimately, the mechanisms of finance in the United States are the accumulation of historical precedents - both legal and non-legal (such as economic, but also social). These precedents have led to the current system, on a continuing and settled basis. The legal and economic systems merging for the best system of an international monetary order can represent a balance of legal realism and legal formalism. -/- “Money” is printed by the U.S. government, designated as an official note. Value is correlated with how many of those printed pieces of paper exist. This is the basic concept of inflation. This concept of value and inflation is said to be connected to a commodity - such as how much gold or silver existed in the Federal Reserve's physical locations or Fort Knox. Such systems have been in place since at least Mesopotamia, where clay tablets were used to represent credit, or comparable contracts that seem to resemble modern forms of fiat currency. (shrink)

From the early eighteenth century onward, primacy for the invention of binary numeration and arithmetic was almost universally credited to the German polymath Gottfried Wilhelm Leibniz (1646–1716). Then, in 1922, Frank Vigor Morley (1899–1980) noted that an unpublished manuscript of the English mathematician, astronomer, and alchemist Thomas Harriot (1560–1621) contained the numbers 1 to 8 in binary. Morley’s only comment was that this foray into binary was “certainly prior to the usual dates given for binary numeration”. Almost thirty years later, (...) John William Shirley (1908–1988) published reproductions of two of Harriot’s undated manuscript pages, which, he claimed, showed that Harriot had invented binary numeration “nearly a century before Leibniz’s time”. But while Shirley correctly asserted that Harriot had invented binary numeration, he made no attempt to explain how or when Harriot had done so. Curiously, few since Shirley’s time have attempted to answer these questions, despite their obvious importance. After all, Harriot was, as far as we know, the first to invent binary. Accordingly, answering the how and when questions about Harriot’s invention of binary is the aim of this short paper. (shrink)

If an AI makes a significant contribution to a research paper, should it be listed as a co-author? The current guidelines in the field have been created to reduce duplication of credit between two different authors in scientific articles. A new computer program could be identified and credited for its impact in an AI research paper that discusses an early artificial intelligence system which is currently under development at Lawrence Berkeley National. One way to imagine the future of (...) artificial intelligence is that it will be much less expensive to develop new technologies than to create new ways of thinking. Now we have done this technology, and now we go and ask why in the end it is the artificial intelligence that takes over? Well, it is not that artificial intelligence is bad, but it is not as effective as human minds or as intelligent as machine minds. Even in the past, when computers were more intelligent than humans, not all the AI programs have been so intelligent as to be intelligent enough to be called intelligent. (shrink)

The authors of the scientific monograph have come to the conclusion that мanagement of socio-economic transformations of business processes requires the use of mechanisms to support of entrepreneurship, sectors of the national economy, the financial system, and critical infrastructure. Basic research focuses on assessment the state of social service provision, analysing economic security, implementing innovation and introducing digital technologies. The research results have been implemented in the different models of costing, credit risk and capital management, tax control, use (...) of artificial intelligence and blockchain. The results of the study can be used in the developing of policies, programmes and strategies for economic security, development of the agricultural sector, transformation of industrial policy, implementation of employment policy in decision-making at the level of ministries and agencies that regulate the management of socio-economic and European integration processes. The results can also be used by students and young scientists in the educational process and conducting scientific research on global challenges and creation scenarios for the development of socio-economic processes. (shrink)

This paper attempts to assess the economic significance and implications of collateralization in different financial markets, which is essentially a matter of theoretical justification and empirical verification. We present a comprehensive theoretical framework that allows for collateralization adhering to bankruptcy laws. As such, the model can back out differences in asset prices due to collateralized counterparty risk. This framework is very useful for pricing outstanding defaultable financial contracts. By using a unique data set, we are able to achieve a clean (...) decomposition of prices into their credit risk factors. We find empirical evidence that counterparty risk is not overly important in credit-related spreads. Only the joint effects of collateralization and credit risk can sufficiently explain unsecured credit costs. This finding suggests that failure to properly account for collateralization may result in significant mispricing of financial contracts. We also analyze the difference between cleared and OTC markets. (shrink)

Although the country is endowed with abundant natural resources, rates of unemployment among the youth of Chad remain alarmingly high. Aim: To determine the factors which militate against the youth engaging in entrepreneurial activities in N’Djamena, the capital city of Chad. Method: A random sample 150 young Chadian entrepreneurs was selected from a research population which comprised all of the young entrepreneurs in N’Djamena who were registered on the databases of the FONAJ, a national fund which provides financial support to (...) young entrepreneurs in Chad, and the Trade and Personal Property Credit Register (TPPCR) of Chad. Results: the paper revealed that young entrepreneurs in Chad were faced with obstacles such as a lack of funding, a lack of support from the government for SMEs, and lack of encouragement and financial support from their families. Although there are programmes to assist young entrepreneurs, it was evident from the findings that many experience great difficulty in ensuring the success and sustainability of their businesses. Consequently, they still require additional support with respect to funding, equipment, and assistance and encouragement from their families, financial institutions, and the government, in order to achieve success in their businesses. The paper concludes with appropriate recommendations for both the government and the young entrepreneurs of N’Djamena to provide relevant insights into how the youth can best be integrated into the entrepreneurial sector in the interests of combating unemployment and enabling them to make a meaningful contribution to the growth of the national economy. Uniqueness: the paper validates the extent to which the current support systems mitigate the problems faced by youth entrepreneurs. (shrink)

A method of identifying banks’ business models and studying the features of their risk profile, considering the system of indicators featuring the structure of assets, liabilities, income, expenses, and other qualitative indicators based on monthly statistical reporting. Kohonen's self-organizing maps (SOM) are used to process large data sets, revealing objects’ hidden features by forming homogeneous groups according to similar values of a large system of indicators. The choice of the system of indicators that play the most significant (...) role in describing the business models of modern banks is substantiated. The proposed method makes it possible to group banks with homogeneous characteristics into so-called structural-functional groups and studies the change in the characteristics of groups of banks over time to compare their behavior during periods of active development of the system and during a crisis. That approach is useful for studying the banking system at the macro level, as it provides a quantitative measure of its financial stability. The more banks are in groups with negative values of parameters, increased risks, and unprofitable performance, the worse the general state of the system. The method also allows studying the features of each structural and functional group and the business models’ features at the meso-level. The number and composition of banks inherent in any group change dynamically, which characterizes the features of the relevant business model in a particular period. The averages of each group reflect the objective changes in the banking system structure. In addition, the SOM trajectory can be built for each individual bank determining the development of its strategy, features of a particular business model, and risk profile. At the micro-level, it allows comparing the features of individual banks within the SFGB and models ways to improve efficiency and financial stability by forecast values for SOM. An extensive system of indicators used to form structural and functional groups of banks allows to quickly respond to changes in the banking system, identify areas of increased risk and explore the adequacy and effectiveness of banks’ business models. (shrink)

Web page phishing is a type of phishing attack that targets websites. In a web page phishing attack, the attacker creates a fake website that looks like a legitimate website, such as a bank or credit card company website. The attacker then sends a fraudulent message to the victim, which contains a link to the fake website. When the victim clicks on the link, they are taken to the fake website and tricked into entering their personal information.Web page phishing (...) attacks are a serious threat to online security. They can be very effective, as they often look very convincing. To protect yourself from web page phishing attacks, you should be suspicious of any emails or messages that ask for your personal information. Do not click on links in emails or messages from unknown senders. If you are unsure whether a website is legitimate, do not enter your personal information. Therefore, in this study, we present a novel approach to detect whether a web page is phishing or legitimate using a neural network model. (shrink)

The article investigates the main characteristics of the financial stability of Ukrainian banks, their risk profile, structure of assets, liabilities, income, expenses based on the monthly reporting data for 2004-2020 (number of observations – 3 813). The Kohonen self-organizing map (SOM) toolkit is used to form homogeneous groups of banks based on a large number of financial indicators. The selected toolkit provides a convenient visualization of the results. Each bank occupies a specific place on the SOM. The close location of (...) banks on the map indicates that these banks have many common characteristics. This study is called the method of structural and functional groups of banks. The study formed stable groups of banks with the same characteristics of business models and risk profile. The formation of consecutive maps for each reporting period allows to obtain the characteristics of each bank separately and the banking system as a whole. The trajectory of an individual bank’s activity during the observation period characterizes the development of its business strategy. The migration of a large number of banks between groups reflects the objective changes in the conditions of banking. Increasing groups of high-risk banks indicate systemic problems. The results show that after a significant reduction in the banking system of Ukraine in 2014-2016, the business models of banks have changed significantly. The resource base relies on unstable sources of current funds with no set term of use. In the assets of banks, a significant portion is invested in government securities – government bonds. Bank loan portfolios have declined and have a higher proportion of non-performing assets (NPL). Many banks have increased currency risk. Concerns are raised about the state of large state-owned banks that hold a separate high-risk group. Thus, the conducted research allows to distinguish groups of banks with specific characteristics of business models and to observe changes of risk profile inherent to these groups. For each structural-functional group, changes in the values of financial indicators are investigated and migration between groups is studied. The proposed methodology is useful for studying both macro and macro levels. (shrink)

The paper is devoted to the study of determinants determined the level of financial security of economic systems. It is shown that the financial security of an economic system implies the achievement of a level of financial stability that will contribute to simultaneously maintaining financial equilibrium and ensuring targeted growth in line with the development strategy. The level of financial security of rail transport in Ukraine was analyzed and it was determined that the decline in its security was the (...) result of a complex interaction of external and internal factors, the main of which were tight government regulation, shifting the financial burden of social responsibilities to Ukrzaliznytsya, PJSC, lack of competition in the transportation of the main nomenclature of cargo and the unsatisfactory state of non-current assets. Based on the Argenti’s method, it is shown that the consequence of the inefficient financial management of Ukrzaliznytsia, PJSC are the reduction of its insolvency. Three main determinants of the financial security of rail enterprises were identified: a reduction in traffic volumes, an unstable capital structure and the impossibility of timely repayment of current liabilities. An additive model for assessing the impact of selected determinants on the level of financial security of Ukrzaliznytsia, PJSC is proposed. The analysis of the model parameters showed that the greatest impact has the index of industrial production, which is due to the predominant formation of its own financial resources of rail transport due to income from freight traffic. A complex of measures designed to improve the financial condition of rail enterprises was proposed. It is substantiated that in order to equalize existing threats, it is necessary to take political decisions aimed at improving the financial condition of Ukrzaliznytsia, PJSC by reducing the intensity of leaching of its financial resources, as well as implementing an anti-crisis financial strategy aimed at optimizing the capital structure and financial rehabilitation of rail enterprises. (shrink)

The purpose of the article is generalization of features of expediency of the creation of innovative parks in Ukraine. Practical output of the results consists in the discovered success factors of the activity of innovative parks in Ukraine in order to create new opportunities of innovation development of the country. Current organizational and functional system of innovative entrepreneurship of Ukraine is an imperfect, complex and by all indications, is in the process of formation. It is assumed that infrastructure of (...) international educational innovative hub can structurally corrected according to the area which operates a hub that is: stimulate the dialogue between academics, businessmen and government officials; provide an interactive exchange of explicit and implicit knowledge; generate shared vision on adaptation measures of dynamic environment. Evaluation of the results of scientific and pedagogical activities of working group of innovative hub should be made for following indicators: development of skills of teaching and research work; introducing of innovative approaches for practical individual activity; formation of innovative approaches for collective practical activity; working on the chosen scientific and methodological theme. Main advantage of proposed university innovative hubs is that laid all necessary foundations in order to high school could be as soon as effectively integrate the results of university, academic and sectoral sciences of Ukraine, well as advanced research results of scientific world community in the development and implementation of innovative projects and development innovation. (shrink)

There is a commonly made distinction between two types of scientists: risk-taking, trailblazing mavericks and detail-oriented followers. A number of recent papers have discussed the question what a desirable mixture of mavericks and followers looks like. Answering this question is most useful if a scientific community can be steered toward such a desirable mixture. One attractive route is through credit incentives: manipulating rewards so that reward-seeking scientists are likely to form the desired mixture of their own accord. Here I (...) argue that this idea is less straightforward than it may seem. Interpreting mavericks as scientists who prioritize rewards over speed and risk, I show in a deliberatively simple model that there is a fixed mixture which is not particularly likely to be desirable and which credit incentives cannot alter. I consider a way around this result, but this has some major drawbacks. I conclude that credit incentives are not as promising a way to create a desirable mixture of mavericks and followers as one might have thought. (shrink)

In this paper, I show that Polleit and Mariano (2011) are right in concluding that Credit Default Swaps (CDS) are per se unobjectionable from Rothbard’s libertarian perspective on property rights and contract theory, but that they fail to derive this conclusion properly. I therefore outline the proper explanation. In addition, though Polleit and Mariano are correct in pointing out that speculation with CDS can conceivably hurt the borrowers’ interests, they fail to grasp that this can be the case only (...) in some peculiar circumstances that I identify. In other words, they miss the bigger picture, the one outside special circumstances, in which CDS trading has the opposite effect. That is, CDS facilitate debt accumulation, including government debt accumulation. Finally, I point out how this can precipitate the collapse of fiat money regimes. An incidental goal of the analysis is to provide a better account than Polleit and Mariano of recent government interventions in and around CDS markets. (shrink)

Credit risk, also known as default risk, is the likelihood of a corporation losing money if a business partner defaults. If the liabilities are not met under the terms of the contract, the firm may default, resulting in the loss of the company. There is no clear way to distinguish between organizations that will default and those that will not prior to default. We can only make probabilistic estimations of the risk of default at best. There are two types (...) of credit risk default models in this regard: structural and reduced-form models. Structural models are used to calculate the likelihood of a company defaulting based on its assets and liabilities. If the market worth of a company's assets is less than the debt it owes, it will default. Reduced form models often assume an external cause of default, such as a Poisson jump process, which is driven by a stochastic process. They model default as a random event with no regard for the balance sheet of the company. This paper provides a Review of credit risk default models. (shrink)

This study contributes to the micro-credit literature by addressing the lack of philosophical dialogue concerning the issue of trust between micro-credit NGOs and rural poor women. The study demonstrates that one of the root causes of NGOs’ contested roles in Bangladesh is the norm that they use (i.e., trust) to rationalize their micro-credit activities. I argue that Bangladeshi micro-credit NGOs’ trust in poor village women is not genuine because they resort to group responsibility sustained through aggressive (...) surveillance. I maintain so by drawing on a trust-based theoretical framework that uses various philosophical insights. Drawing on the same conceptual framework, I also contend, somewhat softening the previous claim, that if micro-credit trust is trust at all, it is at most strategic, not generalized. For being strategic, it has many undermining effects on local social solidarity norms, rendering Bangladeshi micro-credit NGOs and strategic trust an odd couple with no moral compass. To bring forth the moral impetus in micro-credit activities, I lay out some recommendations intended for organizations, managers, and policymakers, consistent with normative corporate social responsibility initiatives. However, further studies can be initiated based on this paper, suggesting its importance for future research. (shrink)

The notion of credit plays a central role in virtue epistemology and in the literature on moral worth. While virtue epistemologists and ethicists have devoted a significant amount of work to providing an account of creditable success, a unified theory of credit applicable to both epistemology and ethics, as well as a discussion of the general form it should take, are largely missing from the literature. Our goal is to lay out a theory of credit that seems (...) to underlie much of the discussion in virtue epistemology, which we dub the Cake Theory. We argue that given the goals that virtue epistemologists and ethicists who discuss moral worth have, this theory is problematic, for it makes credit depend on the wrong facts. (shrink)

This paper presents a Least Square Monte Carlo approach for accurately calculating credit value adjustment (CVA). In contrast to previous studies, the model relies on the probability distribution of a default time/jump rather than the default time itself, as the default time is usually inaccessible. As such, the model can achieve a high order of accuracy with a relatively easy implementation. We find that the valuation of a defaultable derivative is normally determined via backward induction when their payoffs could (...) be positive or negative. Moreover, the model can naturally capture wrong or right way risk. (shrink)

The paper begins by reviewing two problems for fallibilism: the lottery problem, or the problem of explaining why fallible evidence, though otherwise excellent, is not enough to know that one will lose the lottery, and Gettier problems. It is then argued that both problems can be resolved if we note an important illocutionary force of knowledge attributions: namely, that when we attribute knowledge to someone we mean to give the person credit for getting things right. Alternatively, to say that (...) a person knows is to say that she got things right due to her own abilities, efforts and actions, rather than due to dumb luck, or blind chance, or something else. (shrink)

In this paper we will try to find resemblances of the operation of human consciousness with systems with the intention to simulate it mathematically. Also we will try to do the same for the non-conscious operations and try to synthesize the human mind in form of system with subsystems.

Although religious belief is often claimed to help with physical ailments including pain, it is unclear what psychological and neural mechanisms underlie the influence of religious belief on pain. By analogy to other top-down processes of pain modulation we hypothesized that religious belief helps believers reinterpret the emotional significance of pain, leading to emotional detachment from it. Recent findings on emotion regulation support a role for the right ventrolateral prefrontal cortex, a region also important for driving top-down pain inhibitory circuits. (...) Using functional magnetic resonance imaging in practicing Catholics and avowed atheists and agnostics during painful stimulation, here we show the existence of a context-dependent form of analgesia that was triggered by the presentation of an image with a religious content but not by the presentation of a non-religious image. As confirmed by behavioral data, contemplation of the religious image eneabled the religious group to detach themselves from the experience of pain. Critically, this context-dependent modulation of pain specifically engaged the right VLPFC, whereas group-specific preferential liking of one of the pictures was associated with activation in the ventral midbrain. We suggest that religious belief might provide a framework that allows individuals to engage known pain-regulatory brain processes. (shrink)