We are living at a time when large language models increasingly make choices once reserved for people. From writing emails to guiding business decisions, these systems shape daily life. That shift has ...

Learn how overshooting impacts exchange rate volatility and why Dornbusch’s model is pivotal in explaining the short-term departure from price equilibrium.

Structural models of default are widely used to analyze corporate bond spreads, but have generally been unable to explain why risk premiums are as high as they are. This credit spread puzzle can be ...