Sergio Focardi, PhD

Instability, Money, Complexity, Qualitative Changes, Institutions.

Instability, money, complexity, qualitative changes, institutions: These are five new economic ideas that we need to integrate into our Economics if we want to understand economic reality. This site presents ideas that are beginning to be accepted as well as my own research.

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Focardi, Sergio M. and Frank J. Fabozzi, 2020, "Climate Change and Asset Management", The Journal of Portfolio Management 46 (3), 95-107



Focardi, Sergio M., Frank J. Fabozzi, and Davide Mazza, 2019, "Modeling local trends with regime shifting models with time-varying probabilities", International Review of Financial Analysis 66, 101368, 2019

Focardi Sergio M. 2018, “Do Capitalists Still Need Consumers?”, appeared in Social Europe, 18 September, 2018 (

Contrary to widespread belief, the profit of firms does not depend on the consumption of wage earners. Monetary profit, however, depends on debt-driven consumption. This article explains how.

​Focardi Sergio M. 2018, “Symbolic Growth and Stagnant Wages”, appeared in Social Europe, 31 May, 2018 (

This article discusses how, in modern advanced economies, economic growth is due, at least partially,  to the process of creation of symbols attached to products and services. Economies can exhibit growth even in the presence of stagnant wages.

​Focardi, Sergio M. 2018, “Central-bank digital currencies: Towards a cashless society?” The Conversation, 10 April. ( French version appeared 8 May ( This article was signaled in the June 1st Agenda in the World Economic Forum.

This article discusses current considerations by some central banks to offer state digital currencies with, eventually, the possibility of giving the public direct access to accounts in central banks. It discusses the implications of this proposal for banknotes (their eventual elimination?) and the two-level banking system itself.

​Focardi, Sergio M. 2018. “As markets climb to record highs, are today’s stock markets overvalued?” The Conversation, 17 January. ( French version appeared 29 January (

This article discusses the notion of valuation of stocks based on finding their intrinsic price. The intrinsic price of a stock is the price the stock would have in an economy with full employment and with equilibrium between the demand and supply of investments. The question as to whether stocks/markets are over/undervalued can be answered only in a macroeconomic framework.