known, could also contribute to preventing this positive signalling mechanism. how can such market malfunctioning be avoided? in theory, there are two types of remedies to this : the first is to foster a general decrease of asymmetric information about the quality of goods that are traded in a market. for the interbank market, this would imply that better information on a bank ’ s credit exposure is available to potential lenders. in other words, the banking sector needs to be put on more solid grounds again. here, one factor is to improve banks ’ solvency. the second factor is to ensure that liquidity problems do not turn into solvency issues. 11 thus, a second measure to foster interbank market activity is to ensure its liquidity. 12 finally, a further reason for market activity not to pick up is related to network problems. if one side of the market is basically non - existent – i am referring to the lending side of the term market – then this may reduce the incentive for participants to be the first one to act. a liquidity manager of a bank may not dare to do trades that are considered exceptional compared with others, because he may be punished more severely for any losses. herd behaviour exists not only in booms, but also in busts, or even when markets do not exist. this has to do with benchmark remuneration practices which are very common in the financial industry. 13 the result of such practices can be multiple equilibria, some of which are characterised by a high trading activity, some by a lower one. thus, a further action to remedy the situation could entail the steering of markets from one equilibrium to another. 4. from theory to practice : reviving the interbank market i will now examine in more concrete terms the measures that i identified above. the first way to limit adverse selection in the interbank market is to increase transparency. currently, more than a year after the start of the financial turmoil, the distribution of risks among financial market players is still not entirely known. this asymmetric information is a adverse selection in the interbank market has been identified as a source of liquidity hoarding in e. g. ecb ( 2007 ), “ recent issues in the euro area money market : causes, consequences and proposed mitigating measures ”, financial stability review, december, pp. 89 - 91. g. akerlof ( 1970 ), “ the market for “ lemons

economics ) of their " field " of study. but " most of these'modls'seem to be of little or no practical use. " as for the " field " of study, the " math - econ " is considered as ranking higher than the " devlops, " where math - econ and devlops respectively refer to scholars of mathematical economics and development economics. the devlops are ranked lower because they interact with other tribes such as the eichengreen [ 2018 ] traces the historical relationship between economic distress - - the rise of machines, depressions, and financial crises - - and political reactions. at this year's jackson hole economic policy symposium hosted by the federal reserve bank of kansas city, discussion was centered on the rise of big tech companies and the effects of intangible assets on the macroeconomy. https : / / www. kansascityfed. org / publications / research / escp / symposiums / escp - 2018 in japan, sawa [ 1982 ] popularized this through his short book. polscis ( political scientists ) and sociogs ( sociologists ), and are suspected of having given up modl - making. the article concludes, " the prospect for the econ is bleak. their social structure and culture should be studied now before it is gone forever. " it warns of the situation of economics at the time, where economists were too focused on making unrealistic " modls " and reluctant to collaborate with those outside the field of economics. notwithstanding whether such satire was on point at that time, the days in which it can be applied are over. nowadays, economic research has become increasingly founded on empirical work and data science, along with the increase in computing power, spread of the internet, accumulation of and increase in data, and development of econometric techniques ( hamermesh [ 2013 ] ; angrist et al. [ 2017 ], chart 3 ). data science methodology has been adopted actively not only in economics, but also in social sciences in general and in some fields of humanities. through the sharing of methodologies, interaction of economics with other fields of study is being accelerated. this is not to say that economic theory has become extinct, however. in fact, there is now greater variety to economic theory, as seen in the rise and establishment of game theory and behavioral economics. we should say that the share of purely theoretical papers in economics has decreased. what came of this was the