Price Expectations, Foreign Exchange and Interest Rates, and Demand for Money in an Open Economy

Traditional studies on demand for money have often ignored influence of foreign monetary developments. The literature on international capital mobility, on the other hand, focuses on the impact of adjustments in international reserves on domestic money supply with the implicit assumption that aggregate demand for money is inelastic with respect to foreign monetary developments such as changes in exchange and foreign interest rates. These two views have often led to the conclusion that domestic monetary policy is fairly ineffective, and domestic financial markets are highly vulnerable to changes in foreign monetary developments. In this paper, the formulation of a demand function for real cash balances generalizes the traditional demand functions for money which explicitly take into account changes in exchange rates, foreign interest rates, and inflationary expectations. The underlying theoretical model is a general portfolio mode of asset holding which specifies the channels through which the influence of monetary developments abroad are transmitted to the supply and demand for money in a particular country. The demand function for real cash balances derived from this model is estimated using the tile series data for the period 1960-75 for Canada, United States, United Kingdom, and Germany. The results indicate that foreign monetary developments affect demand for money significantly, and considerable misspecification occurs when they are ignored. The results indicate that demand for real cash balances is not, as the traditional theory suggests, inelastic with respect to changes in foreign financial developments, and is fairly stable over the stressful period of 1970-75 when significant international monetary crises came in succession.

Cold Atomic Collisions: Coherent Control of Penning and Associative Ionization

Coherent Control techniques are computationally applied to cold (1mK < T < 1 K) and ultracold (T < 1 microK) Ne*(3s,3P2) + Ar(1S0) collisions. We show that by using various initial superpositions of the Ne*(3s,3P2) M = {-2,-1,0,1,2} Zeeman sub-levels it is possible to reduce the Penning Ionization (PI) and Associative Ionization (AI) cross sections by as much as four orders of magnitude. It is also possible to drastically change the ratio of these two processes. The results are based on combining, within the "Rotating Atom Approximation", empirical and ab-initio ionization-widths.Comment: 4 pages, 2 tables, 2 figure

BlogForever D5.1: Design and Specification of Case Studies

This document presents the specification and design of six case studies for testing the BlogForever platform implementation process. The report explains the data collection plan where users of the repository will provide usability feedback through questionnaires as well as details of scalability analysis through the creation of specific log files analytics. The case studies will investigate the sustainability of the platform, that it meets potential users’ needs and that is has an important long term impact

From sensorimotor dependencies to perceptual practices: making enactivism social

Proponents of enactivism should be interested in exploring what notion of action best captures the type of action-perception link that the view proposes, such that it covers all the aspects in which our doings constitute and are constituted by our perceiving. This article proposes and defends the thesis that the notion of sensorimotor dependencies is insufficient to account for the reality of human perception, and that the central enactive notion should be that of perceptual practices. Sensorimotor enactivism is insufficient because it has no traction on socially dependent perceptions, which are essential to the role and significance of perception in our lives. Since the social dimension is a central desideratum in a theory of human perception, enactivism needs a notion that accounts for such an aspect. This article sketches the main features of the Wittgenstein-inspired notion of perceptual practices as the central notion to understand perception. Perception, I claim, is properly understood as woven into a type of social practices that includes food, dance, dress, music, etc. More specifically, perceptual practices are the enactment of culturally structured, normatively rich techniques of commerce of meaningful multi- and inter-modal perceptible material. I argue that perceptual practices explain three central features of socially dependent perception: attentional focus, aspects’ saliency, and modal-specific harmony-like relations

BlogForever D5.3: User Questionnaires and Reports

This report presents the feedback gathered from third party users during the BlogForever Case Studies. Therefore, the research framework is defined and the case studies results are presented, followed by a summary of conclusions and remarks

BlogForever D5.2: Implementation of Case Studies

This document presents the internal and external testing results for the BlogForever case studies. The evaluation of the BlogForever implementation process is tabulated under the most relevant themes and aspects obtained within the testing processes. The case studies provide relevant feedback for the sustainability of the platform in terms of potential users’ needs and relevant information on the possible long term impact

Macro-prudential policies, moral hazard and financial fragility

This paper presents a DSGE model with banks that face moral hazard in management. Banks receive demand deposits and fund investment projects. Banks are subject to potential withdrawals by depositors which may force them into early liquidation of their investments. The likelihood of this happening depends on the bank management efforts to keep the bank financially sound and the degree of bank leverage. We study the properties of this model under different monetary and macro-prudential policy arrangements. Our model is able to replicate the pro-cyclicality of leverage, and provides insights on the interplay between bank leverage and bank management incentives as a result of monetary, productivity and financial shocks. We find that a combination of pro-cyclical capital requirements and a standard monetary policy are well suited to contain the effects on output and prices of a downturn, keeping the financial system in check. Yet, in an expansionary phase (i.e. a productivity shock) this policy combination may produce desirable results for some macro-variables but at the expense of a deterioration in other macro-financial indicators

Smart Agro-Services in the Farm-Oriented Open Data in Europe (FOODIE) Platform: Insights from the Automatic Delimitation of Management Zones

Farm-Oriented Open Data in Europe (FOODIE) will provide specific and high-value applications and services for the support in the planning and decision-making processes of farmers and other stakeholders groups related to the agricultural and environmental domains. This paper focuses on FOODIE services based on machine learning algorithms and other artificial intelligence techniques providing, for instance, forecasting models to predict crop diseases or proposing management zones by means of clustering homogeneous zones of land. In particular, the service for the automatic delimitation of management zones is reviewed and tested in a case study. The results show the great potential of this smart agro-service for land classification.</jats:p

El Tramo Corto de la Estructura a Plazo como Predictor de Expectativas de la Actividad Económica en Colombia

This article tests the hypothesis that the term structure of interest rates contains information about future economic activity in Colombia. According to the multilogit approach used to verify the hypothesis that an increase in the spread of interest rateEstructura a Plazo, Spread de Tasas de Interés, Diferencial de Inflación, Expectativas de Actividad Económica, Logit Ordenados