Foreign Output Shocks and Monetary Policy Regimes in Small Open Economies: A DSGE Evaluation of East Asia

East Asia’s small open economies were hit in varying degrees by the sharp drop in the output of major industrial countries during the global financial and economic crisis of 2008-2009. This highlights the role of monetary policy regimes in cushioning small open economies from adverse external output shocks. To assess the welfare impact of external shocks on key macroeconomic variables under different monetary policy regimes, we numerically solve and calculate the welfare loss function of a dynamic stochastic general equilibrium (DSGE) model. We find that CPI inflation targeting minimizes welfare losses for import-to-GDP ratios from 0.3 to 0.9. However, welfare under the pegged exchange rate regime is almost equivalent to CPI inflation targeting when the import-to-GDP ratio is one while the Taylor-type rule minimizes welfare when the import-to-GDP ratio is 0.1. We calibrate the model and derive welfare implications for eight East Asian small open economies.Trade channel, Import-to-GDP ratio, small open economies, welfare, exchange rate regimes, inflation targeting, Taylor rule, foreign output shock

Foreign Output Shocks and Monetary Policy Regimes in Small Open Economies: A DSGE Evaluation of East Asia

East Asia’s small open economies were hit in varying degrees by the sharp drop in the output of major industrial countries during the global financial and economic crisis of 2008-2009. This highlights the role of monetary policy regimes in cushioning small open economies from adverse external output shocks. To assess the welfare impact of external shocks on key macroeconomic variables under different monetary policy regimes, we numerically solve and calculate the welfare loss function of a dynamic stochastic general equilibrium (DSGE) model. We find that CPI inflation targeting minimizes welfare losses for import-to-GDP ratios from 0.3 to 0.9. However, welfare under the pegged exchange rate regime is almost equivalent to CPI inflation targeting when the import-to-GDP ratio is one while the Taylor-type rule minimizes welfare when the import-to-GDP ratio is 0.1. We calibrate the model and derive welfare implications for eight East Asian small open economies.

Two-Dimensional Nature of Four-Layer Superconductors by Inequivalent Hole Distribution

The magnetization of the four-layer superconductor CuBa_{2}Ca_{3}Cu_4O_{12-\delta} with T_c\simeq117 K is presented. The high-field magnetization around T_c(H) follows the exact two-dimensional scaling function given by Te\v{s}anovi\'{c} and Andreev. This feature is contrary to the inference that the interlayer coupling becomes strong if the number of CuO_2 planes in a unit cell increases. Also, the fluctuation-induced susceptibility in the low-field region was analyzed by using the modified Lawrence-Doniach model. The effective number of independently fluctuating CuO_2 layers per unit cell, g_{\rm eff}, turned out to be \simeq 2 rather than 4, which indicated that two among the four CuO_2 layers were in states far from their optimal doping levels. This result could explain why CuBa_{2}Ca_{3}Cu_4O_{12-\delta} shows two-dimensional behavior.Comment: 5 pages and 4 figure

Extent of Fermi-surface reconstruction in the high-temperature superconductor HgBa2_2CuO4+δ_{4+\delta}

High magnetic fields have revealed a surprisingly small Fermi-surface in underdoped cuprates, possibly resulting from Fermi-surface reconstruction due to an order parameter that breaks translational symmetry of the crystal lattice. A crucial issue concerns the doping extent of this state and its relationship to the principal pseudogap and superconducting phases. We employ pulsed magnetic field measurements on the cuprate HgBa$_2$CuO$_{4+\delta}$ to identify signatures of Fermi surface reconstruction from a sign change of the Hall effect and a peak in the temperature-dependent planar resistivity. We trace the termination of Fermi-surface reconstruction to two hole concentrations where the superconducting upper critical fields are found to be enhanced. One of these points is associated with the pseudogap end-point near optimal doping. These results connect the Fermi-surface reconstruction to both superconductivity and the pseudogap phenomena.Comment: 5 pages. 3 Figures. PNAS (2020

Comments on "Vortex Glass and Lattice Melting Transitions in a YNi_2B_2C Single Crystal"

Recently, Mun et.al. (Phys. Rev. Lett., 76, 2790 (1996)) have published their results on single crystal YNi_2B_2C, claiming that their experimental observations can be explained in terms of formation of Vortex Glass and Lattice melting. Our experiments, carried out on samples obtained from the SAME source, reveal a much richer phase diagram and span wider regions of experimental parameter space than Mun et. al. that encompasses most of their observations. We speculate that this material has anomalous intrinsic properties and the results cannot be explained by simple models about the flux lattice.Comment: 1 page, LaTeX type, 1 PostScript figure, Uses PRABIB.STY file, 600 dpi PS file available at http://sagar.physics.neu.edu/preprints.html To appear in Physical Review Letter

Phase diagram of CeVSb3 under pressure and its dependence on pressure conditions

We present temperature dependent resistivity and ac-calorimetry measurements of CeVSb3 under pressure up to 8 GPa in a Bridgman anvil cell modified to use a liquid medium and in a diamond anvil cell using argon as a pressure medium, respectively. We observe an initial increase of the ferromagnetic transition temperature Tc with pressures up to 4.5 GPa, followed by decrease of Tc on further increase of pressure and finally its disappearance, in agreement with the Doniach model. We infer a ferromagnetic quantum critical point around 7 GPa under hydrostatic pressure conditions from the extrapolation to 0 K of Tc and the maximum of the A coefficient from low temperature fits of the resistivity \rho (T)=\rho_{0}+AT^{n}. No superconductivity under pressure was observed down to 0.35 K for this compound. In addition, differences in the Tc(P) behavior when a slight uniaxial component is present are noticed and discussed and correlated to choice of pressure medium