Fiscal policy, pricing frictions and monetary accommodation

We investigate the theoretical conditions for effectiveness of government consumption expenditure expansions using US, Euro area and UK data. Fiscal expansions taking place when monetary policy is accommodative lead to large output multipliers in normal times. The 2009-2010 packages need not produce significant output multipliers, may have moderate debt effects, and only generate temporary inflation. Expenditure expansions accompanied by deficit/debt consolidations schemes may lead to short run output gains but their success depends on how monetary policy and expectations behave. Trade openness and the cyclicality of the labor wedge explain cross-country differences in the magnitude of the multipliers.Government consumption expenditure shocks; pricing frictions; monetary policy accommodation; debt and inflation dynamics

Grain refinement in a AlZnMgCuTi alloy by intensive melt shearing: A multi-step nucleation mechanism

This is a post-print version of the article. Copyright @ 2010 Elsevier B.V.Direct chill (DC) cast ingots of wrought Al alloys conventionally require the deliberate addition of a grain refiner to provide a uniform as-cast microstructure for the optimisation of both mechanical properties and processability. Grain refiner additions have been in widespread industrial use for more than half a century. Intensive melt shearing can provide grain refinement without the need for a specific grain refiner addition for both magnesium and aluminium based alloys. In this paper we present experimental evidence of the grain refinement in an experimental wrought aluminium alloy achieved by intensive melt shearing in the liquid state prior to solidification. The mechanisms for high shear induced grain refinement are correlated with the evolution of oxides in alloys. The oxides present in liquid aluminium alloys, normally as oxide films and clusters, can be effectively dispersed by intensive shearing and then provide effective sites for the heterogeneous nucleation of Al3Ti phase. As a result, Al3Ti particles with a narrow size distribution and hence improved efficiency as active nucleation sites of alpha-aluminium grains are responsible for the achieved significant grain refinement. This is termed a multi-step nucleation mechanism.Funding was obtained from the EPRSC

Reforms in tax-benefit systems in order to increase emplyoment incentives in the EU

In this paper we discuss the role of tax and benefit systems in the context of the functioning of the labour markets and review recent progress made by EU Member States in reforming tax and benefit systems with a view to increasing economic incentives for higher employment and job creation. On the basis of the most recent comparable data and indicators, we try to assess whether concrete measures are being taken by Member States to alleviate the tax pressure on labour and especially on the low paid. We also examine benefit systems (especially unemployment benefit systems) with a view to evaluating recent reforms to increase employment incentives.Our main conclusions are that while Member States have started to ease the tax burden on labour, progress on reforms has been unequal between tax and benefit systems: the emphasis has clearly been on the tax side while benefit reforms have mostly been relatively minor, and without adequate attention to the interaction between tax and benefit schemes. In view of the goal of full employment, to which the Union and the Member States are committed, it has become more urgent to speed up reforms of tax and benefit systems in order to increase labour supply and reduce structural unemployment. Further reforms aimed at making work pay should take a more comprehensive approach, including a review of the interaction between tax and benefit systems and their joint incentives to work. In general, further efforts are needed to reduce the overall generosity of benefit schemes, including eligibility rules, and to strengthen their interaction with active labour market policies in order to enhance the efficiency of active policies. This strategy could help to move people from benefit dependency to work, while preserving an adequate level of social protection for those in need.effects of taxation, labour supply, labour demand, tax reforms, benefits,