Central bank is economical institution, which is seen as essential part of the contemporary economics. One of its many functions includes implementation of the monetary policy - namely regulating amount of money circulating in the market (i.e., printing of money). Most commonly it is said that first contemporary central banks emerged by the end of XVII century (starting from England), though there were attempts at creating something similar during the middle ages.

Before the central banks value of money were based on the value raw products (e.g., gold) used to produce a coin. Namely everything was based on a belief that a coin might be melted down and traded for a similar value. This principle is behind the money in Westeros, but the author of the forbes.com article considers the possibilities to create central bank in Westeros. The article is an interesting read to both fans of the show (or books) as well as to the people interested in how central banks emerge and what do they do.

Read more on forbes.com »

Slavoj Žižek is Slovenian philosopher, who writes on various topics in economics, politics and culture. In this video, recorded for Big think youtube channel, he speaks about the economical problems of the XXI century. He claims that these problems might undermine the relationship between democracy and capitalism. We invite you to watch and to think about what is being said.

Recently journal Physica A accepted our, A. Kononovicius and J. Ruseckas, manuscript titled "Nonlinear GARCH model and 1/f noise" [1]. In this article we shown that simple memory-less model with nonlinear term may exhibit interesting stylized fact - long-range memory. Our manuscript is even more interesting due to the fact that considered model (and its various modifications) is somewhat widely used by the practitioners.

In previous blog posts we have demonstrated that one can reproduce power law distributions using GARCH(1,1) model and also that nonlinear GARCH(1,1) model enables reproduction of long-range memory. In this blog post we once again touch the topic of long-range memory, but now we consider nonlinear feedback.

Recently journal Physica A accepted our, A. Kononovicius and J. Ruseckas, manuscript titled "Nonlinear GARCH model and 1/f noise" [1]. In this article we shown that simple memory-less model with nonlinear term may exhibit interesting stylized fact - long-range memory. Our manuscript is even more interesting due to the fact that considered model (and its various modifications) is somewhat widely used by the practitioners.

Last time we have shown that GARCH(1,1) modeli is able to produce power law distributions, but not a long-range memory. In this text we introduce nonlinearity into GARCH(1,1) model and demonstrate that the modified model exhibits long-range memory.

Recently journal Physica A accepted our, A. Kononovicius and J. Ruseckas, manuscript titled "Nonlinear GARCH model and 1/f noise" [1]. In this article we shown that simple memory-less model with nonlinear term may exhibit interesting stylized fact - long-range memory. Our manuscript is even more interesting due to the fact that considered model (and its various modifications) is somewhat widely used by the practitioners.

In the next couple of blog posts we will present the main results of the manuscript. We will start with a simple demonstration that GARCH(1,1) model may exhibit power law distributions