Non-linearities in exchange rate pass-through: Evidence from smooth transition models

This paper examines the presence of non-linear mechanism in the exchange rate pass-through (ERPT) to CPI inflation for 12 euro area (EA) countries. Using smooth transition regression (STR) model, we explore the existence of non-linearities with respect to the inflation environment. We find strong evidence that pass-through respond non-linearly to inflation level for 8 out of 12 EA countries, that is, the transmission of exchange rate is higher when inflation rate surpass some threshold. Our results provide a broad support to the hypothesis suggested by Taylor (2000) that ERPT is decreasing in a lower and more stable inflation environment

Relations between harmonic analysis associated with two differential operators of different orders

AbstractThe transmutation operators were introduced by Delsarte and Lions to state relations between harmonic analysis (generalized translation operators, generalized convolution, generalized Fourier transform and generalized Paley–Wiener theorem) associated with two differential operators of the same order in the complex domain. In this paper, we discuss the analogous problem for differential operators having different orders. More precisely, we consider a suitable class of differential operators Lz in the complex domain and from harmonic analysis associated with Lz, we state the corresponding one associated with Lzn,n being an arbitrary positive integer. Our analysis is based on Ricci's decomposition. Some particular cases are singled out

On some (n−1)-symmetric linear functionals

AbstractMany authors have dealt with problems related to the symmetrization of sequences of orthogonal polynomials on a real line or on a unit circle. Particular aspects are treated for quadratic or cubic decompositions. In this paper, we present a technique that unifies the treatment of these topics for an arbitrary positive order of decomposition n by considering a more general definition of orthogonality. This technique is based on the decomposition with respect to the cyclic group of order n. The main theorem is applied to the orthogonality on (n−1)-symmetric curves. Some particular cases are singled out. These results may be useful in studying Hermite–Padé approximations, vector continued fractions and dynamical systems

Recent estimates of exchange rate pass-through to import prices in the euro area

This paper provides an update on the exchange rate pass-through (ERPT) estimates for 12 euro area (EA) countries. First, based on quarterly data over the 1990-2012 period, our study does not find a significant heterogeneity in the degree of pass-through across the monetary union members, in contrast to previous empirical studies. As we use a longer time span for the post-EA era than existing studies, this is not surprising, since the process of monetary union has entailed some convergence towards more stable macroeconomic conditions across euro area (EA) member states. Second, when assessing the stability of passthrough elasticities, we find very weak evidence of a decline around the inception of the euro in 1999. However, our results reveal that a downtrend in ERPT estimates became apparent starting from the beginning of the 1990s. This observed decline was synchronous to the shift towards reduced inflation regimes in our sample of countries. Finally, we notice that the distinction between “peripheral” and “core” EA economies in terms of pass-through has significantly decreased over the last two decades

Some discrete d-orthogonal polynomial sets

AbstractIn this paper, we characterize all polynomial sets which are at the same time d-orthogonal and Δω-Appell. The resulting polynomials reduce to Charlier polynomials for (d,ω)=(1,1). Various properties of the obtained polynomials are singled out: generating function, recurrence relation of order d+1 and a difference equation of order d+1. We also explicitly express the d-dimensional functional for which the d-orthogonality holds

The Role of the Business Cycle in Exchange Rate Pass-Through: The Case of Finland

In this paper we investigate whether exchange rate pass-through (ERPT) responds nonlinearly to economic activity along the business cycle. Using quarterly data spanning the period 1975:1 to 2011:1, we explore the existence of nonlinearities in ERPT to CPI inflation for the Finnish economy. Within a logistic smooth transition framework, our investigations reveal a strong regime-dependence of pass-through, depending positively on economic activity. Besides, point estimates indicate that the long-run pass-through coefficient is equal to 0.15% (weakly significant) when GDP growth is below a threshold of 3%. However, when the Finnish economy’s growth rate speeds up - above the threshold of 3% - ERPT elasticity increases to 0.47%. These results provide some useful guidance on how policymakers should act over different phases of the business cycle. More specifically, monetary policy should factor in the nonlinear mechanism of ERPT over the business cycle in order to prevent exchange rate movements from fueling a continuous inflationary process.http://deepblue.lib.umich.edu/bitstream/2027.42/132977/1/wp1078.pd

Thymoquinone ameliorates lead-induced suppression of the antioxidant system in rat kidneys

Objective: Alteration of the antioxidant status in the kidneys may be related to lead (Pb) intoxication. The present study aimed to investigate the possible beneficial effect of thymoquinone (TQ), the major active ingredient of the volatile oil of Nigella sativa seeds, on Pb-induced renal antioxidant defense system impairment.Methods: A total of thirty two healthy adult maleWistar rats were randomly divided into four equal groups as follows: a control group, which received no treatment; a Pb group, which was exposed to 2,000 ppm of Pb acetate in drinking water; a Pb-TQ group, which was cotreated with Pb plus TQ (5 mg/kg/day, per os); and a TQ group receiving only TQ. All treatments were applied for five weeks.Results: TQ alone did not induce any significant changes in the antioxidant defense system. By contrast, Pb exposure significantly decreased reduced glutathione level and superoxide dismutase, glutathione peroxidase, catalase, and glutathione reductase activities in the renal tissue. Interestingly, supplementation with TQ significantly improved the affected antioxidant parameters.Conclusion: Our data are the first to provide evidence on the protective effect of TQ against Pb-induced renal antioxidant capacity impairment and suggest that this component might be a clinically promising alternative in Pb nephrotoxicity.Keywords: heavy metals; thymoquinone; antioxidant parameters; nephrotoxicity; ra