Threadneedle is a simulation framework developed to explore the behavior of the banking system. We are aiming to reproduce the behavior of banking systems using the Basel 2 and 3 Regulatory frameworks, as well as local Icelandic regulations, as exactly as possible.
Threadneedle Street, London. Famous for being the site of the Bank of England.
Over the last fifty years, computer science has developed a great deal of experience in analyzing and troubleshooting distributed systems like the banking system. Viewed as a distributed system, the monetary system is an example of a relatively unusual (for computer science) closed network, where the operation of the system depends on packets of information (money) continuously circulating in the economy, and being used to determine the price signal for the economy.
By treating the banking system as a distributed system, and applying the same analytical techniques that we use when designing and engineering larger scale critical real-time systems such as the Internet, we hope to cast light on some of its ‘features’ such as the periodic credit crises that have afflicted western economies in the three hundred years since the effective introduction of modern banking.
At a time of uncertainty in the global economy, it is time to examine accepted economic theories. This is why Dr. Jacky Mallett introduced a very simple simulation of a one product economy with a constant money supply. Working with established equations, Dr. Mallett began questioning theories at the heart of the field. The results of her simulation have revealed that even the simplest economy has complexities that economists do not fully take into account, and that the market can behave in unexpected ways.
This spring IIIM is continuing it’s tradition on having an Open Day for all of those interested in the newest achievements in the field of AI. This year we have invited one of our closest collaborators Center for Analysis and Design of Intelligent Agents (CADIA) to join the event with several exciting presentations.
Here at IIIM we are excited to share with you our first newsletter! The aim of the newsletter is to cast light on the research projects we’re working on, events related to the field of AI and IIIM’s collaborations.
In this first newsletter you can read about Dr. Yngvi Björnsson’s account on IIIM’s and CADIA’s collaboration and Dr. Jacky Mallett’s article on Simulating Modern Banking Systems. There is also a pieces on the RU hosted “Humanobs Constructivist Workshop“, where researchers from around the world came together in a search for answers in the growing field of Artificial General Intelligence.
Catalyzing innovation and high-technology research in Iceland