Why do banks promise to pay par on demand?

We survey the theories of why banks promise to pay par on demand and examine evidence about the conditions under which banks have promised to pay the par value of deposits and banknotes on demand when holding only fractional reserves. The theoretical literature can be broadly divided into four strands: liquidity provision, asymmetric information, legal restrictions, and a medium of exchange. We assume that it is not zero cost to make a promise to redeem a liability at par value on demand. If so, then the conditions in the theories that result in par redemption are possible explanations of why banks promise to pay par on demand. If the explanation based on customers’ demand for liquidity is correct, payment of deposits at par will be promised when banks hold assets that are illiquid in the short run. If the asymmetric-information explanation based on the difficulty of valuing assets is correct, the marketability of banks’ assets determines whether banks promise to pay par. If the legal restrictions explanation of par redemption is correct, banks will not promise to pay par if they are not required to do so. If the transaction explanation is correct, banks will promise to pay par value only if the deposits are used in transactions. After the survey of the theoretical literature, we examine the history of banking in several countries in different eras: fourth-century Athens, medieval Italy, Japan, and free banking and money market mutual funds in the United States. We find that all of the theories can explain some of the observed banking arrangements, and none explain all of them

SpitzerSpitzer Parallax of OGLE-2018-BLG-0596: A Low-mass-ratio Planet around an M-dwarf

We report the discovery of a $Spitzer$ microlensing planet OGLE-2018-BLG-0596Lb, with preferred planet-host mass ratio $q \sim 2\times10^{-4}$. The planetary signal, which is characterized by a short $(\sim 1~{\rm day})$ "bump" on the rising side of the lensing light curve, was densely covered by ground-based surveys. We find that the signal can be explained by a bright source that fully envelops the planetary caustic, i.e., a "Hollywood" geometry. Combined with the source proper motion measured from $Gaia$, the $Spitzer$ satellite parallax measurement makes it possible to precisely constrain the lens physical parameters. The preferred solution, in which the planet perturbs the minor image due to lensing by the host, yields a Uranus-mass planet with a mass of $M_{\rm p} = 13.9\pm1.6~M_{\oplus}$ orbiting a mid M-dwarf with a mass of $M_{\rm h} = 0.23\pm0.03~M_{\odot}$. There is also a second possible solution that is substantially disfavored but cannot be ruled out, for which the planet perturbs the major image. The latter solution yields $M_{\rm p} = 1.2\pm0.2~M_{\oplus}$ and $M_{\rm h} = 0.15\pm0.02~M_{\odot}$. By combining the microlensing and $Gaia$ data together with a Galactic model, we find in either case that the lens lies on the near side of the Galactic bulge at a distance $D_{\rm L} \sim 6\pm1~{\rm kpc}$. Future adaptive optics observations may decisively resolve the major image/minor image degeneracy.Comment: 34 pages, 8 figures, Submitted to AAS journa

Systematic KMTNet Planetary Anomaly Search. V. Complete Sample of 2018 Prime-Field

We complete the analysis of all 2018 prime-field microlensing planets identified by the KMTNet AnomalyFinder. Among the 10 previously unpublished events with clear planetary solutions, 8 are either unambiguously planetary or are very likely to be planetary in nature: OGLE-2018-BLG-1126, KMT-2018-BLG-2004, OGLE-2018-BLG-1647, OGLE-2018-BLG-1367, OGLE-2018-BLG-1544, OGLE-2018-BLG-0932, OGLE-2018-BLG-1212, and KMT-2018-BLG-2718. Combined with the 4 previously published new AnomalyFinder events and 12 previously published (or in preparation) planets that were discovered by eye, thismakes a total of 24 2018 prime-field planets discovered or recovered by AnomalyFinder. Together with a paper in preparation on 2018 sub-prime planets, this work lays the basis for the first statistical analysis of the planet mass-ratio function based on planets identified in KMTNet data. By systematically applying the heuristic analysis of Hwang et al. (2022) to each event, we identify the small modification in their formalism that is needed to unify the so-called close/wide and inner/outer degeneracies, as conjectured byComment: 22 pages, 14 tables, 15 figure

OGLE-2018-BLG-1011L\lowercase{b,c}: Microlensing Planetary System with Two Giant Planets Orbiting a Low-mass Star

We report a multiplanetary system found from the analysis of microlensing event OGLE-2018-BLG-1011, for which the light curve exhibits a double-bump anomaly around the peak. We find that the anomaly cannot be fully explained by the binary-lens or binary-source interpretations and its description requires the introduction of an additional lens component. The 3L1S (3 lens components and a single source) modeling yields three sets of solutions, in which one set of solutions indicates that the lens is a planetary system in a binary, while the other two sets imply that the lens is a multiplanetary system. By investigating the fits of the individual models to the detailed light curve structure, we find that the multiple-planet solution with planet-to-host mass ratios $\sim 9.5\times 10^{-3}$ and $\sim 15\times 10^{-3}$ are favored over the other solutions. From the Bayesian analysis, we find that the lens is composed of two planets with masses $1.8^{+3..4}_{-1.1}~M_{\rm J}$ and $2.8^{+5.1}_{-1.7}~M_{\rm J}$ around a host with a mass $0.18^{+0.33}_{-0.10}~M_\odot$ and located at a distance $7.1^{+1.1}_{-1.5}~{\rm kpc}$. The estimated distance indicates that the lens is the farthest system among the known multiplanetary systems. The projected planet-host separations are $a_{\perp,2}=1.8^{+2.1}_{-1.5}~{\rm au}$ ($0.8^{+0.9}_{-0.6}~{\rm au}$) and $a_{\perp,3}=0.8^{+0.9}_{-0.6}~{\rm au}$, where the values of $a_{\perp,2}$ in and out the parenthesis are the separations corresponding to the two degenerate solutions, indicating that both planets are located beyond the snow line of the host, as with the other four multiplanetary systems previously found by microlensing.Comment: 14 pages, 18 figures, 8 table

Breast cancer management pathways during the COVID-19 pandemic: outcomes from the UK ‘Alert Level 4’ phase of the B-MaP-C study

Abstract: Background: The B-MaP-C study aimed to determine alterations to breast cancer (BC) management during the peak transmission period of the UK COVID-19 pandemic and the potential impact of these treatment decisions. Methods: This was a national cohort study of patients with early BC undergoing multidisciplinary team (MDT)-guided treatment recommendations during the pandemic, designated ‘standard’ or ‘COVID-altered’, in the preoperative, operative and post-operative setting. Findings: Of 3776 patients (from 64 UK units) in the study, 2246 (59%) had ‘COVID-altered’ management. ‘Bridging’ endocrine therapy was used (n = 951) where theatre capacity was reduced. There was increasing access to COVID-19 low-risk theatres during the study period (59%). In line with national guidance, immediate breast reconstruction was avoided (n = 299). Where adjuvant chemotherapy was omitted (n = 81), the median benefit was only 3% (IQR 2–9%) using ‘NHS Predict’. There was the rapid adoption of new evidence-based hypofractionated radiotherapy (n = 781, from 46 units). Only 14 patients (1%) tested positive for SARS-CoV-2 during their treatment journey. Conclusions: The majority of ‘COVID-altered’ management decisions were largely in line with pre-COVID evidence-based guidelines, implying that breast cancer survival outcomes are unlikely to be negatively impacted by the pandemic. However, in this study, the potential impact of delays to BC presentation or diagnosis remains unknown

Distinguishing Panics and Information-Based Bank Runs: Welfare and Policy Implications.

In this paper, the authors contrast panics and information-based bank runs in an effort to provide a robust and empirically plausib le model of how bank runs are triggered. The model of information-bas ed runs is characterized by two-sided asymmetric information: the ban k cannot observe the true liquidity needs of the depositors while dep ositors are asymmetrically informed about bank asset quality. They al so examine the relative degrees of risk sharing provided by bank depo sit contracts and traded equity contracts. They show that the choice of deposit or equity depends on the attributes of and information abo ut the underlying investment returns. Copyright 1988 by University of Chicago Press.

High dose caffeine citrate for extubation of preterm infants: a randomised controlled trial

Objective: To compare two dosing regimens for caffeine citrate in the periextubation period for neonates born at less than 30 weeks gestation in terms of successful extubation and adverse effects. Design: A multicentre, randomised, double blind, clinical trial. Setting: Four tertiary neonatal units within Australia. Patients: Infants born less than 30 weeks gestation ventilated for more than 48 hours. Interventions: Two dosing regimens of caffeine citrate (20 v 5 mg/kg/day) for periextubation management. Treatment started 24 hours before a planned extubation or within six hours of an unplanned extubation. Main outcome measure: Failure to extubate within 48 hours of caffeine loading or reintubation and ventilation or doxapram within seven days of caffeine loading. Results: A total of 234 neonates were enrolled. A significant reduction in failure to extubate was shown for the 20 mg/kg/day dosing group (15.0% v 29.8%; relative risk 0.51; 95% confidence interval (CI) 0.31 to 0.85; number needed to treat 7 (95% CI 4 to 24)). A significant difference in duration of mechanical ventilation was shown for infants of less than 28 weeks gestation receiving the high dose of caffeine (mean (SD) days 14.4 (11.1) v 22.1 (17.1); p  =  0.01). No difference in adverse effects was detected in terms of mortality, major neonatal morbidity, death, or severe disability or general quotient at 12 months. Conclusions: This trial shows short term benefits for a 20 mg/kg/day dosing regimen of caffeine citrate for neonates born at less than 30 weeks gestation in the periextubation period, without evidence of harm in the first year of life