Identifying monetary policy in a small open economy under fixed exchange rates

We demonstrate how to identify monetary policy under fixed exchange rates in a structural vector autoregression (SVAR) using Denmark as a case study. The identifying restrictions are compared to SVARs for flexible exchange-rate regimes. Our basic model generates a plausible central-bank reaction function, and the responses to monetary shocks are in accordance with theory. We extend the basic model and econometric approach to incorporate the central bank's interventions on the foreign-exchange market

Spectacular Role of Electron Correlation in the Hyperfine Interactions in 2D5/2^2D_{5/2} States in Alkaline Earth Ions

The low-lying n(=3,4,5)d $^2D_{5/2}$ states alkaline earth ions are of vital importance in a number of different physical applications. The hyperfine structure constants of these states are characterized by unusually strong electron correlation effects. Relativistic coupled-cluster theory has been employed to carry out {\it ab initio} calculations of these constants. The role of the all order core-polarization effects was found to be decisive in obtaining good agreement of the results of our calculations with accurate measurements. The present work is an apt demonstration of the power of the coupled-cluster method to cope with strongly interacting configurations.Comment: Submitted to Physical Review Letters, 3 figures and 5 table

International transmission of transitory and persistent monetary shocks under imperfect information

We analyze the transmission of monetary shocks in a new openeconomy macroeconomics model with one-period nominal contracts and imperfect information. Shocks may have transitory and persistent components, which only through accumulation of information over time becomes known. Responses to shocks are altered compared to the case of full information. There are persistent effects on international relative prices, and delayed exchange-rate overshooting is possible following a persistent shock. In some cases, there are (ex post) excess returns as a positive interest rate spread is accompanied by an appreciating currency (or vice versa). Lastly, it is demonstrated that staggering re-inforce persistence

Noisy Financial Signals and Persistent Effects of Nominal Shocks in Open Economies

Floating exchange rates display substantial short-run volatility causing a nontrivial information problem in disentangling temporary from permanent changes. Although agents observe current market signals they are imperfectly informed about the future, but they accumulate information and learn over time. We analyze how this basic information problem in the presence of one-period nominal contracts affects the dynamic adjustment process to nominal shocks. Specifically we use a general equilibrium two-country model with specialized production and one-period nominal contracts and consider the propagation of nominal shocks. Informational problems are shown to have important qualitative and potentially strong quantitative importance for the propagation of nominal shocks.

Propagation of nominal shocks in open economies

Empirical evidence documents substantial persistence in the adjustment process to nominal shocks. Existing open-economy models have failed either to generate interesting dynamics or found that the mechanisms are quantitatively weak. We consider the propagation of nominal shocks in a fully specified stochastic intertemporal open-economy model with incomplete capital markets and staggered nominal wage contracts. It is shown that persistence depends on wage-price interdependencies (spiral), which in turn in a general-equilibrium setting depends on structural parameters characterizing both the demand and the supply side of markets. Parameter choices strengthening wage-price interdependencies thus strengthen persistence as is demonstrated analytically and illustrated numerically. A further product of the paper is that it develops a method by which to solve explicitly for a stochastic intertemporal version of the New Open-Economy Macroeconomics model in which the expenditure switching effect is effective

The Evolution of Central Volcanoes in Ultraslow Rift Systems : Constraints From D. Joao de Castro Seamount, Azores

The Dom Joao de Castro seamount in the Hirondelle Basin (Azores) is a central volcano on the ultraslow diverging Terceira Rift axis. The combination of structural and geochemical data provides insights into the evolution of central volcanoes in oceanic rift systems above the Azores melting anomaly. The orientation of fault scarps and volcanic structures at D. Joao de Castro and the adjacent Castro fissure zone indicate that the regional SW-NE extending stress field dominates the morphology of the NW Hirondelle Basin. The regional tectonic stress field controls the crustal melt pathways and leads to dike emplacement along fissure zones and the prevalent eruption of mafic lavas. The occurrence of mafic to felsic lavas at D. Joao de Castro gives evidence for both a deep and a shallow crustal melt reservoir generating a subordinate local stress field at the seamount. New Sr-Nd-Pb isotope data along with incompatible trace element ratios indicate that D. Joao de Castro and the Castro Ridges originated from similarly heterogeneous mantle source but did not form simultaneously. Our new model implies that central volcanoes along the Terceira Rift form by the growth of volcanic ridges and transitioned into circular edifices after magmatic systems generate local changes in the regional lithospheric stress field. The geometry of D. Joao de Castro and other magmatic systems along the Terceira Rift combined with the alkaline nature of the erupted lavas, and the large lithosphere thickness indicates that young oceanic rifts are more similar to continental rifts rather than mid-ocean ridges.Peer reviewe

Three Dimensional Quantitative Structure-Activity Relationships of Sulfonamides Binding Monoclonal Antibody by Comparative Molecular Field Analysis

The three-dimensional quantitative structure-activity relationship (3D-QSAR) model of sulfonamide analogs binding a monoclonal antibody (MabSMR) produced against sulfamerazine, was carried out by comparative molecular field analysis (CoMFA). The affinities of MabSMR, expressed as Log10IC50, for 17 sulfonamide analogs were determined by competitive fluorescence polarization immunoassay (FPIA). Removal of two outliers from the initial set of 17 sulfonamide analogs improved the predictability of the models. The 3D-QSAR model of 15 sulfonamides resulted in q2cv values of 0.600, and r2 values of 0.995, respectively. This novel study combining FPIA with CoMFA demonstrates that multidisciplinary research can be used as a useful tool to investigate antigen-antibody interactions and provide information required for design of novel haptens, which may result in new antibodies with properties already optimized by an antibody-based immunoassay

Agouti C57BL/6N embryonic stem cells for mouse genetic resources.

We report the characterization of a highly germline competent C57BL/6N mouse embryonic stem cell line, JM8. To simplify breeding schemes, the dominant agouti coat color gene was restored in JM8 cells by targeted repair of the C57BL/6 nonagouti mutation. These cells provide a robust foundation for large-scale mouse knockout programs that aim to provide a public resource of targeted mutations in the C57BL/6 genetic background

Newer Approaches for Malaria Vector Control and Challenges of Outdoor Transmission

The effective and reliable management of malaria vectors is still a global challenge. Recently, it has been noted that the first vaccine against Plasmodium falciparum malaria, RTS,S/AS01 showed only transient protection, particularly in infants, and rapid resistance has been developing to artemisinin-based drugs. Therefore, the control of malaria mosquito vectors according to strategies of integrated vector management (IVM) is receiving emphasis. A rather wide number of novel mosquito control tools have been tested, including attractive toxic sugar baits, eave tubes, nano-synthesized pesticides loaded with microbial- and plant-borne compounds, biocontrol agents with little non-target effects, new adult repellents, oviposition deterrents, and even acoustic larvicides. However, their real-world applications remain limited. Most National Malaria Control Programs in Africa still rely on indoor residual spraying (IRS) and long-lasting insecticidal nets (LLINs) to reduce malaria incidence but generally have insufficient impact on malaria prevalence. Here, we focus on facts, trends, and current challenges in the employment of the above-mentioned vector control tools in the fight against malaria. We emphasize the needs for better vector control tools used in IVM to overcome the challenges posed by outdoor transmission and growing levels of insecticide resistance, which are threatening the efficacy of LLINs and IRS