The rationale for a safe asset and fiscal capacity for the Eurozone. LEQS Paper No. 144/2019 May 2019

The only way to share common liabilities in the Eurozone is to achieve full fiscal and political union, i.e. unity of liability and control. In the pursuit of that goal, there is a need to smooth the transition, avoid unnecessary strains to macroeconomic and financial stability and lighten the burden of stabilisation policies from national sovereigns and the European Central Bank, while preserving market discipline and avoiding moral hazard. Both fiscal and monetary policy face constraints linked to the high legacy debt in some countries and the zero-lower-bound, respectively, and thus introducing Eurozone ‘safe assets’ and fiscal capacity at the centre would strengthen the transmission of monetary and fiscal policies. The paper introduces a standard Mundell-Fleming framework adapted to the features of a closed monetary union, with a two-country setting comprising a ‘core’ and a ‘periphery’ country, to evaluate the response of policy and the economy in case of symmetric and asymmetric demand and supply shocks in the current situation and following the introduction of safe bonds and fiscal capacity. Under the specified assumptions, it concludes that a safe asset and fiscal capacity, better if in combination, would remove the doom loop between banks and sovereigns, reduce the loss in output for both economies and improve the stabilisation properties of fiscal policy for both countries, and thus is welfare enhancing

Resource-driven Substructural Defeasible Logic

Linear Logic and Defeasible Logic have been adopted to formalise different features relevant to agents: consumption of resources, and reasoning with exceptions. We propose a framework to combine sub-structural features, corresponding to the consumption of resources, with defeasibility aspects, and we discuss the design choices for the framework

A First Look at the Crypto-Mining Malware Ecosystem: A Decade of Unrestricted Wealth

Illicit crypto-mining leverages resources stolen from victims to mine cryptocurrencies on behalf of criminals. While recent works have analyzed one side of this threat, i.e.: web-browser cryptojacking, only commercial reports have partially covered binary-based crypto-mining malware. In this paper, we conduct the largest measurement of crypto-mining malware to date, analyzing approximately 4.5 million malware samples (1.2 million malicious miners), over a period of twelve years from 2007 to 2019. Our analysis pipeline applies both static and dynamic analysis to extract information from the samples, such as wallet identifiers and mining pools. Together with OSINT data, this information is used to group samples into campaigns. We then analyze publicly-available payments sent to the wallets from mining-pools as a reward for mining, and estimate profits for the different campaigns. All this together is is done in a fully automated fashion, which enables us to leverage measurement-based findings of illicit crypto-mining at scale. Our profit analysis reveals campaigns with multi-million earnings, associating over 4.4% of Monero with illicit mining. We analyze the infrastructure related with the different campaigns, showing that a high proportion of this ecosystem is supported by underground economies such as Pay-Per-Install services. We also uncover novel techniques that allow criminals to run successful campaigns.Comment: A shorter version of this paper appears in the Proceedings of 19th ACM Internet Measurement Conference (IMC 2019). This is the full versio

New Equations for Neutral Terms: A Sound and Complete Decision Procedure, Formalized

The definitional equality of an intensional type theory is its test of type compatibility. Today's systems rely on ordinary evaluation semantics to compare expressions in types, frustrating users with type errors arising when evaluation fails to identify two `obviously' equal terms. If only the machine could decide a richer theory! We propose a way to decide theories which supplement evaluation with `$\nu$-rules', rearranging the neutral parts of normal forms, and report a successful initial experiment. We study a simple -calculus with primitive fold, map and append operations on lists and develop in Agda a sound and complete decision procedure for an equational theory enriched with monoid, functor and fusion laws

Generalised Compositional Theories and Diagrammatic Reasoning

This chapter provides an introduction to the use of diagrammatic language, or perhaps more accurately, diagrammatic calculus, in quantum information and quantum foundations. We illustrate the use of diagrammatic calculus in one particular case, namely the study of complementarity and non-locality, two fundamental concepts of quantum theory whose relationship we explore in later part of this chapter. The diagrammatic calculus that we are concerned with here is not merely an illustrative tool, but it has both (i) a conceptual physical backbone, which allows it to act as a foundation for diverse physical theories, and (ii) a genuine mathematical underpinning, permitting one to relate it to standard mathematical structures.Comment: To appear as a Springer book chapter chapter, edited by G. Chirabella, R. Spekken