PRIORITIZING ECONOMIC GROWTH: ENHANCING MACROECONOMIC POLICY CHOICE

This paper spells out a logic for increasing macroeconomic policy space in order to prioritize the goals of growth, employment creation and poverty reduction. First, there is the need to create additional policy instruments so that a greater number of policy goals can be addressed. Frequently, real economy goals get partly crowded out by financial objectives because there are too few instruments for too many goals. Second, the calibrated use of policy tools by degrees of commitment, deployment and assignment can create space for different policy-mixes. Selective capital controls, intermediate exchange rate regimes, and some monetary policy autonomy create the policy space within which a variety of policy combinations and mixes are possible and a greater number of instruments are available. Prioritization of real economy goals becomes both more feasible and more likely with a broader range of policy alternatives. Third, along with selective use of capital controls, fiscal policy-based stabilization instead of exchange rate-based stabilization delinks the exchange rate from the goal of internal financial stability to which it is yoked in a regime of fixed exchange rates. This delinkage enables the use of intermediate exchange rate regimes (soft pegs and managed floating). The use of these regimes in “the missing middle” between fixed and flexible exchange rates creates policy space where different mixes are possible generating a greater range of policy alternatives. Fourth, prioritizing real economy goals is also facilitated by the design of a larger strategic framework for accelerated development including institutions, norms, behaviours and governance. The larger strategic framework mobilizes more assets and power toward a dynamic growth trajectory that creates a more favourable context for macroeconomic policy. The impact of macroeconomic policies on growth, employment creation and poverty reduction is likely to be stronger when they are part of a wider effort to marshal resources for accelerated development. The examples of the East Asian success stories provide the evidence for this conclusion. These four steps in the logic for increased macroeconomic policy choice – new policy tools, selective and pragmatic use of capital controls and exchange rate intervention, fiscal policy-based stabilization, and strategic frameworks – reinforce each other in their capacity to create more policy space.

Instability of fixed, low-thrust drag compensation

FORCED drag compensation using continuous low-thrustpropulsion has been considered for satellites in low Earth orbit. This simple, but nonoptimal, scheme merely requires that the thrust vector is directed opposite to the drag vector and that the magnitude of the two are equal. In principle, the drag force acting on the spacecraft could be determined onboard using accurate accelerometers. However, for small, low-cost spacecraft such sensors may beunavailable. An alternative strategy would be to Ž x the thrust magnitude equal to the expected air drag that would be experienced by the spacecraft. The thrust levelwould be periodically updated based on ground-based orbit determination. In this Engineering Note, it is shown that such a forced circular orbit with a Ž fixed thrust levelis exponentially unstable for all physically reasonable atmosphere models

Strong Stability Preserving Two-Step Runge-Kutta Methods

We investigate the strong stability preserving (SSP) property of two-step Runge– Kutta (TSRK) methods. We prove that all SSP TSRK methods belong to a particularly simple\ud subclass of TSRK methods, in which stages from the previous step are not used. We derive simple order conditions for this subclass. Whereas explicit SSP Runge–Kutta methods have order at most four, we prove that explicit SSP TSRK methods have order at most eight. We present TSRK methods of up to eighth order that were found by numerical search. These methods have larger SSP coefficients than any known methods of the same order of accuracy, and may be implemented in a form with relatively modest storage requirements. The usefulness of the TSRK methods is demonstrated through numerical examples, including integration of very high order WENO discretizations

Interplay between spin-relaxation and Andreev reflection in ferromagnetic wires with superconducting contacts

We analyze the change in the resistance of a junction between a diffusive ferromagnetic (F) wire and normal metal electrode, due to the onset of superconductivity (S) in the latter and a double Andreev scattering process leading to a complete internal reflection of a large fraction of the spin-polarized electrons back into the ferromagnet. The superconducting transition results in an additional contact resistance arising from the necessity to match spin-polarized current in F-wire to spin-less current in S-reservoir, which is comparable to the resistance of a piece of a F-wire with the length equal to the spin-relaxation length.Comment: 4 pages, 2 fig

Understanding the impact of Cotton Subsidies on developing countries

Models developed to investigate the impact of cotton subsidies have found that US support, by virtue of its absolute magnitude, is particularly damaging and responsible for most of the reduction in cotton-earning potential in developing countries. This has been used as an argument for reducing or postponing cuts in subsidies to European farmers, as these appear to have less impact on developing countries. Our results, through a careful examination of the nature of the cotton market, agree but suggest that under certain assumptions subsidies by smaller subsidisers (such as the EU) may be disproportionately harmful to some suppliers, notably to West and Central African countries. This is especially damaging to them since they have the potential to increase supply.Cotton, Subsidies, Development

Methyl 2-amino-5-iso­propyl-1,3-thia­zole-4-carboxyl­ate

The title compound, C8H12N2O2S, forms a supramolecular network based on N-HN hydrogen-bonded centrosymmetric dimers that are linked in turn by N-HO contacts