Editorial introduction

Sustainability, security and equality are desirable features of socio-economic systems which the world today undoubtedly lacks. History amply conrfims that constant change is an immanent feature of humanity and it is only uncertain how rapidly and violently this change takes place. In recent times so-called “black swans”, understood as major events with far-reaching consequences, have been occurring all too frequently. While the world is still dealing with the consequences of the COVID-19 pandemic it faces new political, social and economic challenges arising from the war at the interface between Europe and Asia-on the edge of the European Union. In such circumstances the functioning of economies, nfiancial markets and businesses is signicfiantly hampered and requires increased eofrts by policymakers and market participants to fore cast key processes now happening at an accelerated pace, evaluate their potential consequences and nfid ways to mitigate the associated risks. eTh current increase in volatility is a stark reminder of a number of fundamental questions that need to be constantly answered in new contexts: - How can sudden shifts in nfiancial markets be anticipated more eefctively especially with the use of modern technologies? - How to design investment portfolios in uncertain times? Can new, alternative asset classes perform useful functions in this regard or are these assets more likely to cause market disturbances in the future? - How to shape operations and corporate governance of businesses to avoid additional, unnecessary internal disruptions and costs? - How to model and price market risk during a period of rapidly increasing inflation and interest rates? - What is the impact of inevitably rising arms spending on the world economy and individual countries? Is military expenditure the only rational way to ensure regional and global security? - How should regulators counter the negative eefcts of labour market un certainty? - Are the world and individual countries doomed to widening economic inequalities? What are the counter measures?