FuturICT Journal Publications
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THE FUTURICT FET FLAGSHIP SUBMISSION to the European Commission

THE FUTURICT FET FLAGSHIP SUBMISSION SUMMARY DOCUMENT


FUTURICT is one of the 6 flagships which were funded over a duration of 12 months starting from May 2011.

 

These flagship pilots aim to create a design and description of consolidated candidate FET Flagship Initiatives, including assessment of feasibility in scientific, technical and financial terms.

 

On October 23, the FUTURICT Flagship Pilot presented its integrated research agenda, including the involvement and commitment from key stakeholders to the European Commission. 

 

By the end of 2012 to beginning of 2013, at least two of the Pilots are expected to be chosen to be launched as full FET Flagship Initiatives.

 

FUTURICT is a FET Flagship project using collective, participatory research, integrated across the fields of ICT, the social sciences and complexity science, to design socio-inspired technology and develop a science of global, socially interactive systems.

 

The FUTURICT project will bring together, on a global level, Big Data, new modelling techniques and new forms of interaction, leading to a new understanding of society and its co-evolution with technology.

 

This will place Europe at the forefront of a major scientific drive to understand, explore and manage our complex, connected world in a more sustainable and resilient manner.

The unifying goal of the FUTURICT FET flagship is to integrate the fields of information and communication technologies (ICT), social sciences and complexity science, to develop a new kind of participatory science and technology that will help us to understand, explore and manage the complex, global, socially interactive systems that make up our world today, while at the same time paving the way for a new paradigm of ICT systems that will leverage socio-inspired self-organisation, self-regulation, and collective awareness.

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Bankruptcy cascades in interbank markets: Gabriele Tedeschi, Amin Mazloumian, Mauro Gallegati, Dirk Helbing

Bankruptcy cascades in interbank markets: Gabriele Tedeschi, Amin Mazloumian, Mauro Gallegati, Dirk Helbing | FuturICT Journal Publications | Scoop.it

We study a credit network and, in particular, an interbank system with an agent-based model. To understand the relationship between business cycles and cascades of bankruptcies, we model a three-sector economy with goods, credit and interbank market. In the interbank market, the participating banks share the risk of bad debits, which may potentially spread a bank’s liquidity problems through the network of banks. Our agent-based model sheds light on the correlation between bankruptcy cascades and the endogenous economic cycle of booms and recessions. It also demonstrates the serious trade-off between, on the one hand, reducing risks of individual banks by sharing them and, on the other hand, creating systemic risks through credit-related interlinkages of banks. As a result of our study, the dynamics underlying the meltdown of financial markets in 2008 becomes much better understandable.

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