Abstract The purpose of the research – which this text presents only a first part is to show that duality specific financial instruments positive role in market growth and counteracting risks, respectively negative through speculative massification influenced by public policies. Assuming crises as moments truth, I analyse various data for Tulipmania, Great Depression Recession how they evolve u...

A model is developed where firms in a financial system have to settle their debts to each other by using a liquid asset (or money). The question that is studied is how many firms must have access to this asset from outside the financial system to make sure that all debts within the system are settled. The main result is that these liquidity needs are larger when these firms are more interconnec...

The Aurora Financial Management System developed at the University of Vienna is a decision support tool for portfolio and asset liability management. An investor chooses a portfolio of various assets or asset classes, in such a way that some objective 9], including a risk measure, is maximized, subject to uncertainty of future markets' development and additional constraints (e.g. budget restric...

One important reason for the global impact of the 2007–2009 financial crisis was massive illiquidity in combination with an extreme exposure of many financial institutions to liquidity needs and market conditions. As a consequence, many financial instruments could not be traded anymore; investors ran on a variety of financial institutions, particularly in wholesale markets; financial institutio...