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This paper investigates the role of sentiment in the US economy from 1920 to 1934 using digitised articles from The Wall Street Journal. We derive a monthly sentiment index and use a 10‐variable vector error correction model to identify sentiment shocks that are orthogonal to fundamentals. We show the timing and strength of these shocks and their resultant effects on the economy using historical decompositions. Intermittent impacts of up to 15 per cent on industrial production, 10 per cent on the S&P 500 and bank loans, and 37 basis points for the credit risk spread suggest a large role for sentiment. [ABSTRACT FROM AUTHOR]

Economic and financial narratives inform market sentiment through the emotions that are triggered and the subjectivity that gets evoked. There is an important connection between narrative, sentiment, and human decision making. In this study, natural language processing is used to extract market sentiment from the narratives using FinBERT, a Python library that has been pretrained on a large financial corpus. A news sentiment index is constructed and shown to be a leading indicator of systemic risk. A rolling regression shows how the impact of news sentiment on systemic risk changes over time, with the importance of news sentiment increasing in more recent years. Monitoring systemic risk is an important tool used by central banks to proactively identify and manage emerging risks to the financial system; it is also a key input into the credit loss provision quantification at banks. Credit loss provision is a key focus area for auditors because of the risk of material misstatement, but finding appropriate sources of audit evidence is challenging. The causal relationship between news sentiment and systemic risk suggests that news sentiment could serve as an early warning signal of increasing credit risk and an effective indicator of the state of the economic cycle. The news sentiment index is shown to be useful as audit evidence when benchmarking trends in accounting provisions, thus informing financial disclosures and serving as an exogenous variable in econometric forecast models. [ABSTRACT FROM AUTHOR]

Copyright of Max-Planck-Institut für Gesellschaftsforschung Discussion Papers is the property of Max Planck Institute for the Study of Societies and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Max-Planck-Institut für Gesellschaftsforschung Discussion Papers is the property of Max Planck Institute for the Study of Societies and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This study investigates the anchoring bias and disposition effect in investor trading decisions under different market volatility conditions (stable and volatile markets) and examines their impact on portfolio performance. Employing a quasi-experimental design, participants engage in interactive trading with four securities—two with potential negative returns and two with positive returns—within a simulated asset market. The findings reveal the presence of both the disposition effect and the anchoring bias among individual investors in India. Notably, market volatility influences these behavioral biases, with the disposition effect more pronounced in volatile markets, while the anchoring bias is significant in stable markets. Furthermore, investors exhibiting the disposition effect tend to have lower portfolio performance, while those influenced by the anchoring bias achieve relatively better results. These insights can aid individual investors in recognizing their behavioral biases and making informed trading decisions to enhance portfolio performance. Additionally, this study presents valuable suggestions to financial institutions and regulatory government agencies engaged in similar experiments, with the goal of improving financial decision-making and investment behavior. [ABSTRACT FROM AUTHOR]

Narratives play a pivotal role in solving complex problems, as they provide an interpretive framework for facilitating the solution to a given challenge. We presume that if the basis of a narrative applied to a complex problem is incorrect, the interpretation of the problem will also be distorted. Therefore, solutions that are primarily low-efficiency in nature demand new or "rframed" narratives. We examine this premise through the case of the United Kingdom in the light of changes in narratives created to solve regional inequalities, particularly regarding the interpretative framework of the "Levelling Up" policy agenda and narrative, which was introduced by the government of Boris Johnson. Additionally, we conducted a literature review on the Levelling Up policy to provide a supplementary theoretical background beyond the concept of narratives. Conclusions on narratives and Levelling Up are also outlined. [ABSTRACT FROM AUTHOR]

National innovation systems (NIS) are generally perceived as a set of interconnected organizations (or structures) that domestically produce and commercially implement scientific knowledge and technology. The development of any national innovation system is the key element for shaping up the scientific values in every country. Our paper identifies the trends in global innovation and technological scope associated with the formation of global economic relations, global investment, the flow of knowledge, technology, increased internationalization of R&D, and the formation of global innovation networks. In addition, it attempts to trace the relationship between instrumental values associated with the perception of science and technology and the development of NIS within the context of sustainable economic development using a case study from Russia. The paper carries out the analysis of values on the basis of the World Values Survey (WVS), as well as statistical indicators characterizing the development of the national innovation system. The obtained quantitative results stemming from our empirical model are further refined with the help of qualitative research, including the narrative economics approaches. Our results might be beneficial for the stakeholders and policymakers working with innovation policies and approaches in business, economics, and education. [ABSTRACT FROM AUTHOR]

Copyright of Max-Planck-Institut für Gesellschaftsforschung Discussion Papers is the property of Max Planck Institute for the Study of Societies and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This work examines three frameworks for responding to economic disruption: risk mitigation, systemic recovery, and economic resilience. Specifically, by reviewing the metatheoretical commitments, analytic contexts, and implications of two economic perspectives, represented by risk mitigation and systemic recovery, we argue that current approaches to understanding resilience in academic economics have failed to address ongoing and emergent disruptions in the economic and social world. In response, this work also reviews a possible synthesis of economic and communication frameworks. This review places the economic resilience framework, inspired by the communication theory of resilience, in conversation with extant literature in economics, communication studies, and other disciplines and concludes with an outline for further theoretical, methodological, and practical development. [ABSTRACT FROM AUTHOR]

According to the 2014 UCL report on communicating climate change, a new social contract is necessary to save the biosphere, challenging us not only to provide commentary on scientific data, but also to rethink the categories framing the relationship between humanity and the natural environment. The former is related to translation insofar as it regards the development of accounts that convey conclusions from natural sciences in rhetorically impactful ways. The latter defines "the task of the translator" in the Anthropocene - to draw from Walter Benjamin - as the effort to develop, in processes of translation, more self-conscious metaphors of inhabiting the Earth. A special role would be played in this area by literature, especially the kind that foregrounds environmentally-aware linguistic invention capable of overcoming the persisting dualism of nature and culture. The aim of this article is to sketch a theoretical framework for such an understanding of translation on the basis of ground-breaking research in the fields of translation studies (Michael Cronin, Kobus Marais), ecopoetics (Julia Fiedorczuk, Gerardo Beltrán), and philosophical criticisms of anthropocentricism formulated within the post-humanities and speculative realism (Bruno Latour, Catherine Malabou). To illustrate these claims, the article invokes poems by Alice Oswald, Sinéad Morrissey (translated by Magda Heydel) and Forrest Gander (translated by Julia Fiedorczuk). These translators are tasked with reconstructing - to borrow Benjamin's idea - a "pure language" understood here as an expressive absolute that defies anthropocentric limitations. Accommodation of various languages, including non-human ones (as biosemiotics suggests), could thus streamline the development of a new social contract or "constitution" (as Latour terms it) that would redefine (or re-translate) the social and the natural. [ABSTRACT FROM AUTHOR]