Exchange Rate Management and Inflation Targeting: Modeling the Exchange Rate in Reduced-Form New Keynesian Models

This paper introduces a strategy for modeling the exchange rate when the monetary authority targets inflation while also managing the exchange rate using interventions. It does so in the framework of a standard reduced-form New Keynesian model of monetary transmission used in many institutions for research, forecasting, and monetary policy analysis. We propose a microfounded modification to the UIP condition which allows for modeling of informal exchange rate bands. Our modeling strategy is useful for most hybrid IT regimes, including those with imperfect control over market interest rates.IT regimes, New Keynesian model, exchange rate, UIP

Eigenvalue filtering in VAR models with application to the Czech business cycle

We propose the method of eigenvalue filtering as a new tool to extract time series subcomponents (such as business-cycle or irregular) defined by properties of the underlying eigenvalues. We logically extend the Beveridge-Nelson decomposition of the VAR time-series models focusing on the transient component. We introduce the canonical state-space representation of the VAR models to facilitate this type of analysis. We illustrate the eigenvalue filtering by examining a stylized model of inflation determination estimated on the Czech data.We characterize the estimated components of CPI, WPI and import inflations, together with the real production wage and real output, survey their basic properties, and impose an identification scheme to calculate the structural innovations. We test the results in a simple bootstrap simulation experiment. We find two major areas for further research: first, verifying and improving the robustness of the method, and second, exploring the method’s potential for empirical validation of structural economic models. JEL Classification: C32, E32Beveridge-Nelson decomposition, business cycle, eigenvalues, filtering, inflation, time series analysis

CEA 2018: the 14th Conference of Environmental Archaeology in Modena and this Special Issue of IANSA

The 14th Conference of Environmental Archaeology, held in Modena on February 2018, proposed a bridge between palaeoecology and ecology and emphasized the role of archaeobotany in environmental archaeology and the modern science of conservation

Barley and Malt in the Middle Age and Early Modern Period in Czech Lands

The history of the barley use as a raw material for malt- and beer production in middle ages and early modern era was still in the environment of the czech lands constructed solely on the basis of archival records and historical pictures. Less importance was given to archaeological fi nds. Unjustly neglected remained fi nds of botanical macro remains of barley and barley malt from younger historical epochs, although in the Central European context it is in terms of quantity and quality of the fi ndings a unique fi le. The aim of this article is therefore historical and archaeological context to highlight the benefi ts of archaeo botany for understanding the history of barley, while the integrity of the present all fi ndings malt barley in Czech republic

Beta3 adrenoceptors substitute the role of M 2 muscarinic receptor in coping with cold stress in the heart: Evidence from M 2KO mice

We investigated the role of beta3-adrenoceptors (AR) in cold stress (1 or 7 days in cold) in animals lacking main cardioinhibitive receptors - M2 muscarinic receptors (M 2KO). There was no change in receptor number in the right ventricles. In the left ventricles, there was decrease in binding to all cardiostimulative receptors (beta1-, and beta2-AR) and increase in cardiodepressive receptors (beta3-AR) in unstressed KO in comparison to WT. The cold stress in WT animals resulted in decrease in binding to beta1- and beta2-AR (to 37%/35% after 1 day in cold and to 27%/28% after 7 days in cold) while beta3-AR were increased (to 216% of control) when 7 days cold was applied. MR were reduced to 46% and 58%, respectively. Gene expression of M2 MR in WT was not changed due to stress, while M3 was changed. The reaction of beta1- and beta2-AR (binding) to cold was similar in KO and WT animals, and beta3-AR in stressed KO animals did not change. Adenylyl cyclase activity was affected by beta3-agonist CL316243 in cold stressed WT animals but CL316243 had almost no effects on adenylyl cyclase activity in stressed KO. Nitric oxide activity (NOS) was not affected by BRL37344 (beta3-agonist) both in WT and KO animals. Similarly, the stress had no effects on NOS activity in WT animals and in KO animals. We conclude that the function of M2 MR is substituted by beta3-AR and that these effects are mediated via adenylyl cyclase rather than NOS. © Springer Science+Business Media, LLC 2011

Eigenvalue decomposition of time series with application to the Czech business cycle

The writers follow a Beveridge-Nelson like time series decomposition method (into trend, business cycle and irregular components), and examine a stylized model of price inflation determination using the Czech data. They characterize the estimated components of CPI, IPPI and import inflations, together with the real production wage and real output, and survey their basic correlation properties

Multi-period fixed-rate loans, housing and monetary policy in small open economies

We investigate the implications of the existence of multi-period fixed-rate loans for the behaviour of a small open economy exposed to finance shocks and housing boom-and-bust cycles. To this end, we propose a simple and analytically tractable method of incorporating multi-period debt into an otherwise standard consumer problem. Our simulations show that multi-period fixed-rate contracts can help insulate the economy from the adverse effects of particular shocks. This insulating mechanism is particularly effective for countries with high debt positions exposed to foreign exchange fluctuations, or countries operating a fixed exchange rate regime.