The link between money and prices in an open economy: the Canadian evidence from 1971 to 1980

Monetary theory ; Prices ; Inflation (Finance) ; Canada

SYM, Chern-Simons, Wess-Zumino Couplings and their higher derivative corrections in IIA Superstring theory

We find the entire form of the amplitude of two fermion strings (with different chirality), a massless scalar field and one closed string Ramond-Ramond (RR) in IIA superstring theory which is different from its IIB one. We make use of a very particular gauge fixing and explore several new couplings in IIA. All infinite $u$- channel scalar poles and $t,s$- channel fermion poles are also constructed. We find new form of higher derivative corrections to two fermion two scalar couplings and show that the first simple $(s+t+u)-$ channel scalar pole for $p+2=n$ case can be obtained by having new higher derivative corrections to SYM couplings at third order of $\alpha'$. We find that the general structure and the coefficients of higher derivative corrections to two fermion two scalar couplings are completely different from the derived $\alpha'$ higher derivative corrections of type IIB.Comment: 29 pages, no figure,Latex file,published version in EPJ

Sub-Inertial Gravity Modes in the B8V Star KIC 7760680 Reveal Moderate Core Overshooting and Low Vertical Diffusive Mixing

KIC 7760680 is so far the richest slowly pulsating B star, by exhibiting 36 consecutive dipole ($\ell=1$) gravity (g-) modes. The monotonically decreasing period spacing of the series, in addition to the local dips in the pattern confirm that KIC 7760680 is a moderate rotator, with clear mode trapping in chemically inhomogeneous layers. We employ the traditional approximation of rotation to incorporate rotational effects on g-mode frequencies. Our detailed forward asteroseismic modelling of this g-mode series reveals that KIC 7760680 is a moderately rotating B star with mass $\sim3.25$ M$_\odot$. By simultaneously matching the slope of the period spacing, and the number of modes in the observed frequency range, we deduce that the equatorial rotation frequency of KIC 7760680 is 0.4805 day$^{-1}$, which is 26\% of its Roche break up frequency. The relative deviation of the model frequencies and those observed is less than one percent. We succeed to tightly constrain the exponentially-decaying convective core overshooting parameter to $f_{\rm ov}\approx0.024\pm0.001$. This means that convective core overshooting can coexist with moderate rotation. Moreover, models with exponentially-decaying overshoot from the core outperform those with the classical step-function overshoot. The best value for extra diffusive mixing in the radiatively stable envelope is confined to $\log D_{\rm ext}\approx0.75\pm0.25$ (with $D_{\rm ext}$ in cm$^2$ sec$^{-1}$), which is notably smaller than theoretical predictions.Comment: 12 Figures, 2 Tables, all data publicly available for download; accepted for publication in Astrophysical Journa

Was Expansionary Monetary Policy Feasible During the Great Contraction? An Examination of the Gold Standard Constraint

The recent consensus view, that the gold standard was the leading cause of the worldwide Great Depression 1929-33, stems from two propositions: (1) Under the gold standard, deflationary shocks were transmitted between countries and, (2) for most countries, continued adherence to gold prevented monetary authorities from offsetting banking panics and blocked their recoveries. In this paper we contend that the second proposition applies only to small open economies with limited gold reserves. This was not the case for the US, the largest country in the world, holding massive gold reserves. The US was not constrained from using expansionary policy to offset banking panics, deflation, and declining economic activity. Simulations, based on a model of a large open economy, indicate that expansionary open market operations by the Federal Reserve at two critical junctures (October 1930 to February 1931; September 1931 through January 1932) would have been successful in averting the banking panics that occurred, without endangering convertibility. Indeed had expansionary open market purchases been conducted in 1930, the contraction would not have led to the international crises that followed.

Money Stock Targeting, Base Drift and Price-Level Predictability: Lessons From the U.K. Experience

It is controversial whether money stock targeting without base drift (i.e. following a trend-stationary growth path) makes the price level more predictable in the presence of permanent shocks to money demand. Developing a procedure that does not run into the Lucas critique, and applying this procedure to the case of the U.K., the paper finds that the variance of the trend inflation rate in the U.K. would have been reduced by more than one half if the Bank of England had not allowed base drift.

Money Growth Variability and Money Supply Interdependence Under InterestRate Control: Some Evidence For Canada

Canada, like many countries, has recently experienced difficulties in achieving money growth stability and money supply independence. Based on the buffer-stock view of money-holding as well as the credit market approach to the money supply, this paper suggests that the problems have arisen from the Bank of Canada suse of an interestrate control mechanism.The paper argues that: (1) The short-run behavior of Canadian money grow this influenced by demand shifts in the Canadian credit market.(2)Movements in U.S. interest rates relative to the controlled Canadian interest rates are a key source of these shifts.The paper presents evidence on Canadian money supply and demand functions consistent with the foregoing explanation.