Central Bank and Price Stability: Is a Single Objetive Enough?

Current developments in monetary theory, coupled with the recent practical experience of many and diverse central banks, suggest a number of basic tenets that could be regarded as effective guideposts in the search for successful practices that could contribute to attain and to sustain macroeconomic stabilization. While common sense, the myriad of accompanying circumstances within which policies and institutions develop, tend to confound their significance and to blur their basic meaning and implications. The purpose of this paper is to review and revisit, in the light of prevailing experience, the state of the art regarding monetary and central banking policies and analyze, by outlining these experiences in the form of seven basic principles, their significance for the achievement and the maintenance of macroeconomic stabilization. While each of these principles can be reviewed independently, they are, of course closely linked. The paper first scrutinizes the manner in which the literature has dealt with these issues and, in light of recent experiences, attempts to integrate them into an unified framework and to draw a number of policy lessons and theoretical implications.

Hungary : financial sector reform in a socialist economy

Financial reforms in formerly centrally planned economies take a different form than in market economies because they imply not only liberalizing the system but also reshaping the structure and functioning of financial markets. And the reforms must be designed to facilitate the conduct of monetary policy under rapidly changing economic circumstances. To fulfill this role, financial reforms should: (1) provide the authorities with monetary policy instruments that contribute to short-term stabilization; and (2) provide the incentives for inducing a more efficient intermediation of savings though the financial markets. In this context, the authors identify the main tasks and targets of financial reform and comment on the key development of the Hungarian process. Hungary has made substantial progress, they conclude, but macrofinancial indicators suggest that administrative and technical obstacles remain and that supporting measures must be deepened. The four steps needed are: (1) the ability of the monetary authority to conduct monetary policy must be enhanced; (2) the operating and financial condition of financial intermediaries must be improved; (3) healthy competition among financial intermediaries must be encouraged; and (4) a prudential regulatory framework that does not discriminate against the development of securities market must be established.Banks&Banking Reform,Financial Intermediation,Environmental Economics&Policies,Economic Theory&Research,Financial Crisis Management&Restructuring

Inflation Targeting in the Context of IMF-Supported Adjustment Programs

This paper argues that the IMF's traditional monetary conditionality--a ceiling on net domestic assets of the central bank and a floor on its net international reserves--should be adapted in IMF-supported adjustment programs with countries that have a framework of explicit inflation targets for the implementation of monetary policy. This adaptation should aim at enhancing correspondence and consistency between the monetary objectives of the central bank and the targets established under the IMF-supported adjustment program, as well as between the different instruments used to achieve the policy objectives and targets. The paper reviews various general options in this regard, and, using the case of Brazil as an example, demonstrates how these options may be implemented in practice. . Copyright 2002, International Monetary Fund

Inflation Targeting in the Context of IMF-Supported Adjustment Programs

This paper analyzes how an inflation targeting regimes relate with the conditioning established in the IMF assistance programs, and, in particular, with its inclusion within the performance criteria associated with that conditioning. The paper analyzes the Brazil's case, the first country in an IMF program to adopt an inflation target, and the lessons that can be derived from this experience. In its last section, we evaluate the idea of using Taylor rules to assess the inflationary performance. Simulations generated by the rule produces are not very similar to the effective policy rates, although differences diminish when expected inflation replaces current inflation within the rule.

Gamma Ray Observatory (GRO) dynamics simulator requirements and mathematical specifications, revision 1

The requirements and mathematical specifications for the Gamma Ray Observatory (GRO) Dynamics Simulator are presented. The complete simulator system, which consists of the profie subsystem, simulation control and input/output subsystem, truth model subsystem, onboard computer model subsystem, and postprocessor, is described. The simulator will be used to evaluate and test the attitude determination and control models to be used on board GRO under conditions that simulate the expected in-flight environment

ESTRATEGIAS Y POLITICAS FISCALES DE TRANSICION EN RECIENTES EXPERIENCIAS DE HIPERESTABILIZACION

Este trabajo analiza los planes de estabilización adoptados desde mediados de esta década por cuatro países -Argentina, Bolívia, Brasil e Israel-, concetrándose especialmente en los efectos de dichos programas durante el primer año de implantados. Especial atención se dedica al manejo de la política fiscal dentro de este conjunto de políticas y al efecto de los planes de estabilización en las finanzas públicas.POLITICA ECONOMICA,

Efecto de la ciclofosfamida en la infección por Coccidioides immitis en la rata

Coccidioidomycosis is a systemic mycosis, endemic in arid areas of the American continent. The rat was employed as an experimental host, since it had been shown to reproduce human lesions and present a chronic course of disease with granulomas mainly restricted to lungs. Given the influence of immunosuppressive therapy on the clinical course of human coccidioidomycosis, we studied the effect of cyclophosphamide (CY) in the experimental rat model. Accordingly, animals were inoculated with 400 Coccidioides immitis arthroconidia of the Acosta strain, by intracardiacal route. As single CY doses failed to alter the course of disease, three schedules were used: A) 4 daily doses of 20 mg/kg each, prior to C. immitis inoculation; B) 4 similar daily doses after infection; and C); 6 doses of 20 mg/kg each, given from day +1 to +4, then on days +8 and +9, post infection (pi), taking day 0 as the time of fungal inoculation. The first two schedules inhibited antibody formation up to day 28 pi, without modifying cellular response to coccidioidin as measured by foodpad swelling. Initially, there was greater fungal spread than in controls receiving C. immitis alone, which proved self-limiting in the latter. In contrast, schedule C led to 559r mortality, with both humoral and cellular response abrogation, accompanied by extensive C. immitis dissemination. Histology disclosed significant alterations, such as the persistence of primary infection sporangia, corresponding to the acute stage of coccidioidomycosis in the absence of granuloma development. Therefore, the observed depression in cellular immunity seems responsible for the lack of inflammatory reaction capable of restricting sporangia proliferation in tissues which, in turn, enhances pathogen spread and mortality rate.El propósito de este trabajo fue estudiar el efecto de la inmunosupresión causada por la droga ciclofosfamida (CY) sobre la infección de la rata con Coccidioides immitis por vía intracardíaca. Este huésped fue empleado como modelo experimental, ya que presenta una evolución de la enfermedad semejante a la del hombre, alcanzando una etapa crónica con granulomas principalmente restringidos a los pulmones. Se utilizaron tres esquemas de CY: A) 4 dosis de 20 mg/kg cada una, antes de la inoculación de Ci; B) 4 dosis de igual cantidad de CY, luego de la infección; y C) 6 dosis de 20 mg/kg cada una, administradas desde el día +1 hasta +4 y continuando los días + 8 y +9 post-infección (pi). Los dos primeros esquemas inhibieron la formación de anticuerpos hasta el día 28 pi, sin modificar la respuesta celular a la coccidioidina, medida como hinchazón de la almohadilla plantar. Se observó una mayor diseminación fúngica inicial, autolimi-tándose más tarde. Por el contrario, el esquema C provocó un 55% de mortalidad, disminución de la respuesta humoral y celular, acompañada de una extensa diseminación del Ci. La histología mostró alteraciones significativas, tales como persistencia de esporangios de primoinfección, correspondientes al estadio agudo de la coccidioidomicosis, con ausencia de desarrollo de granulomas. Por lo tanto, la depresión observada en la respuesta celular debido al tratamiento con CY sería la responsable de la ausencia de la reacción inflamatoria capaz de restringir la proliferación de esporangios en los tejidos, lo cual a su vez favorece la diseminación del microorganismo patógeno y el aumento de morta lidad

Financial sector and economic growth in the Republic of Croatia 1995-2005

Financial sector in the Republic of Croatia had a strong growth between 1995 2005.g. Liberalization of financial sector in 1999 led to an increase in bank foreign debt, which resulted in a strong increase in foreign currency reserves and appreciation of the national currency. The growth of the financial sector and credit expansion have been allocated in favour of private and public consumption, but not in industry investments. GDP growth didn't have the same momentum as financial aggregates. Economic growth, after a contraction in 1999 was within the average of global economic growth. Relying on neoclassical growth model, government and central bank didn't put in place the needed set of pro-active policies. Factor allocation was solely through private bank channels financing private consumption. If the sustainable economic growth and new employment are to be major macroeconomic goals, a new macroeconomic paradigm as combination of neclassical and neokeynesians approach will be needed