Group-theoretic Approach for Symbolic Tensor Manipulation: II. Dummy Indices

Computational Group Theory is applied to indexed objects (tensors, spinors, and so on) with dummy indices. There are two groups to consider: one describes the intrinsic symmetries of the object and the other describes the interchange of names of dummy indices. The problem of finding canonical forms for indexed objects with dummy indices reduces to finding double coset canonical representatives. Well known computational group algorithms are applied to index manipulation, which allow to address the simplification of expressions with hundreds of indices going further to what is needed in practical applications.Comment: 14 pages, 1 figure, LaTe

Testing Nonlinearities Between Brazilian Exchange Rate and Inflation Volatilities

There are few studies directly addressing exchange rate and inflation volatilities, and lack of consensus among them. However, this kind of study is necessary, especially because they can help monetary authorities to know price behavior better. This article analyses the relation between exchange rate and inflation volatilities using a bivariate GARCH model, and therefore modeling conditional volatilities, fact largely unexplored by the literature. We find a semi-concave relation between those series, and this nonlinearity may explain their apparently disconnection under a floating exchange rate system. The article also shows that traditional tests, with non-conditional volatilities, are not robust.