Europe, German Mercantilism and the Current Crisis

Contributions to Brancaccio and Fontana (2011) look at a variety of aspects of the current crisis, some of them focusing on the contingent financial causes, others on the underlying contradictions of capitalist economies. In this context, less attention has been paid to the role of Europe and particularly Germany. Europe has not been distinguished by an assertive and cooperative economic policy stance in the aftermath of the current crisis. German mercantilist policies are said to be behind the European policy stance and a source of regional and global imbalances. After a brief examination of the main pillars of European economic policy and German behaviour during the present crisis, these notes suggest an embryonic interpretation of the origins of mercantilist behaviour, dwelling on the nature of mercantilism in economic theory and commercial practice, and of the allegedly German mercantilist model. The suggested interpretation is that in the German case, the national mystique of a trade surplus may have had a role in disciplining the labour market and at the same time assuring profits. Recent developments in Spring 2010 have shown the gravity of the European imbalances in the global crisis (see Cesaratto 2010) and the relevance of the background issues discussed in the present paper.

Pensions in a shrinking economy: a comment on Kuné

In a contribution to Pensions: An International Journal, Prof. Jan Kuné discusses whether a fully funded (FF) pension scheme can cope with a demographic shock better than a payas- you-go (PAYG) system. He makes ample use of my own contributions on this issue but ignores my criticism of the neoclassical interpretation of FF pension schemes and especially of the claim that an FF scheme is superior to PAYG in this and other respects. The purpose of this note is to stimulate some response, from Prof. Kuné or others, to my critique of the neoclassical interpretation. The policy implications of this discussion for pension reforms are evident.

Gaussian Behavior of Quadratic Irrationals

We study the probabilistic behaviour of the continued fraction expansion of a quadratic irrational number, when weighted by some "additive" cost. We prove asymptotic Gaussian limit laws, with an optimal speed of convergence. We deal with the underlying dynamical system associated with the Gauss map, and its weighted periodic trajectories. We work with analytic combinatorics methods, and mainly with bivariate Dirichlet generating functions; we use various tools, from number theory (the Landau Theorem), from probability (the Quasi-Powers Theorem), or from dynamical systems: our main object of study is the (weighted) transfer operator, that we relate with the generating functions of interest. The present paper exhibits a strong parallelism with the methods which have been previously introduced by Baladi and Vall\'ee in the study of rational trajectories. However, the present study is more involved and uses a deeper functional analysis framework.Comment: 39 pages In this second version, we have added an annex that provides a detailed study of the trace of the weighted transfer operator. We have also corrected an error that appeared in the computation of the norm of the operator when acting in the Banach space of analytic functions defined in the paper. Also, we give a simpler proof for Theorem

The controversy over the US Social Security Surplus. A non conventional view

This paper examines the US controversy over the Social Security ‘Trust Fund’ (SS-TF). It is shown that, according to neoclassical theory, the SS-TF has a substantial meaning as a safety belt in view of the alleged pending problems of, but, according to more Keynesian principles, it does not play this function. On the opposite, the establishment of a SS-TF will have deflationary effects on the economy

Germany and the European and Global Crises

Moving from the current global and European imbalances and crises, and from the consideration of the German reaction to them, the paper explores the political economy origins of the conservative German policy stance. It emerges that an export-oriented economy was a deliberate decision of the German elite after WW II and that the external constraint may be regarded as appropriately designed for internal discipline and efficiency (and vice-versa) in a self-reinforcing process. The conclusions illustrate some possible future scenarios for Europe.European Monetary Union, financial crisis, Germany, neo-mercantilism

Mesophases in Nearly 2D Room-Temperature Ionic Liquids

Computer simulations of (i) a [C12mim][Tf2N] film of nanometric thickness squeezed at kbar pressure by a piecewise parabolic confining potential reveal a mesoscopic in-plane density and composition modulation reminiscent of mesophases seen in 3D samples of the same room-temperature ionic liquid (RTIL). Near 2D confinement, enforced by a high normal load, relatively long aliphatic chains are strictly required for the mesophase formation, as confirmed by computations for two related systems made of (ii) the same [C12mim][Tf2N] adsorbed at a neutral solid surface and (iii) a shorter-chain RTIL ([C4mim][Tf2N]) trapped in the potential well of part i. No in-plane modulation is seen for ii and iii. In case ii, the optimal arrangement of charge and neutral tails is achieved by layering parallel to the surface, while, in case iii, weaker dispersion and packing interactions are unable to bring aliphatic tails together into mesoscopic islands, against overwhelming entropy and Coulomb forces. The onset of in-plane mesophases could greatly affect the properties of long-chain RTILs used as lubricants.Comment: 24 pages 10 figure

Hysteresis from dynamically pinned sliding states

We report a surprising hysteretic behavior in the dynamics of a simple one-dimensional nonlinear model inspired by the tribological problem of two sliding surfaces with a thin solid lubricant layer in between. In particular, we consider the frictional dynamics of a harmonic chain confined between two rigid incommensurate substrates which slide with a fixed relative velocity. This system was previously found, by explicit solution of the equations of motion, to possess plateaus in parameter space exhibiting a remarkable quantization of the chain center-of-mass velocity (dynamic pinning) solely determined by the interface incommensurability. Starting now from this quantized sliding state, in the underdamped regime of motion and in analogy to what ordinarily happens for static friction, the dynamics exhibits a large hysteresis under the action of an additional external driving force F_ext. A critical threshold value F_c of the adiabatically applied force F_ext is required in order to alter the robust dynamics of the plateau attractor. When the applied force is decreased and removed, the system can jump to intermediate sliding regimes (a sort of ``dynamic'' stick-slip motion) and eventually returns to the quantized sliding state at a much lower value of F_ext. On the contrary no hysteretic behavior is observed as a function of the external driving velocity.Comment: 12 pages, 5 figures, ECOSS 200

On the value set of small families of polynomials over a finite field, I

We obtain an estimate on the average cardinality of the value set of any family of monic polynomials of Fq[T] of degree d for which s consecutive coefficients a_{d-1},..., a_{d-s} are fixed. Our estimate holds without restrictions on the characteristic of Fq and asserts that V(d,s,\bfs{a})=\mu_d.q+\mathcal{O}(1), where V(d,s,\bfs{a}) is such an average cardinality, \mu_d:=\sum_{r=1}^d{(-1)^{r-1}}/{r!} and \bfs{a}:=(a_{d-1},.., d_{d-s}). We provide an explicit upper bound for the constant underlying the \mathcal{O}--notation in terms of d and s with "good" behavior. Our approach reduces the question to estimate the number of Fq--rational points with pairwise--distinct coordinates of a certain family of complete intersections defined over Fq. We show that the polynomials defining such complete intersections are invariant under the action of the symmetric group of permutations of the coordinates. This allows us to obtain critical information concerning the singular locus of the varieties under consideration, from which a suitable estimate on the number of Fq--rational points is established.Comment: 30 page