AI and Geoeconomics

Enterprises, Employment and Gross Value Added of SMEs in the EU-27, 2012 Growth prospects for SMEs are encouraging European Commission Vice President Antonio Tajani, responsible for industry and entrepreneurship said:  “Our initiatives to help SME's to make it through difficult times have paid off. After five years of sluggish development I am glad to see that SMEs are about to grow again. They are also starting to recruit more staff. Moreover, our indicators make it clear, that SMEs can grow further in 2014. SMEs are the lifeblood of our economy as they are now dragging us out of the most severe crisis of EU economy in the past 50 years." http://ec.europa.eu/enterprise/policies/sme/facts-figures-analysis/performance-review/ Important role of SMEs in economy The 20,4 million European SMEs play an important role in the European economy. They are mostly micro-enterprises and employed approximately 86.8 million people in 2012. This represents 66.5% of all Euro...

Myron Gordon at the University of Toronto in 1982 For the last 13 years and until recently (see Bonds/Equity Positive Correlation: For How Long ?) correlation between US stock and bond returns have been negative. As presented by Hasseltoft (2009) , the correlation between US stock and bond returns has varied substantially over time (puzzle 1), reaching highly positive levels in the late 1970s and early 1980s while turning negative in the late 1990s.   US strock and bond returns correlation  Henrik Hasseltoft 2010 Several statistical models have been put forward to model the time variation but little work has been done on explaining the phenomenon within an equilibrium model. A second feature (puzzle 2) of data that has been considered puzzling is the highly positive correlation between US dividend yields and nominal interest rates , a relation often referred to as the Fed-model . From the Gordon (1962) growth formula, dividend yields are given by the real...