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It’s a Trap: Emperor Palpatine’s Poison Pill |
Abstract
In this paper we study the financial repercussions of the destruction of two fully armed and operational moon-sized battle stations (“Death Stars”) in a 4-year period and the dissolution of the galactic government in Star Wars. The emphasis of this work is to calibrate and simulate a model of the banking and financial systems within the galaxy. Along these lines, we measure the level of systemic risk that may have been generated by the death of Emperor Palpatine and the destruction of the second Death Star. We conclude by finding the economic resources the Rebel Alliance would need to have in reserve in order to prevent a financial crisis from gripping the galaxy through an optimally allocated banking bailout.2
2 No Bothans died to bring us this information.
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Washington University in St. Louis, December 1, 2015-Zachary Feinstein
18.12.2015
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Themes
Asia
Bonds
Bubbles and Crashes
Business Cycles Central Banks
China
Commodities Contrarian
Corporates
Creative Destruction Credit Crunch
Currencies
Current Account
Deflation Depression
Equity Europe Financial Crisis Fiscal Policy
Germany
Gloom and Doom Gold
Government Debt
Historical Patterns
Household Debt Inflation
Interest Rates
Japan
Market Timing
Misperceptions
Monetary Policy Oil Panics Permabears PIIGS Predictions
Productivity Real Estate
Seasonality
Sovereign Bonds Systemic Risk
Switzerland
Tail Risk
Technology
Tipping Point Trade Balance
U.S.A. Uncertainty
Valuations
Yield
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