Money and finance: the heterodox views of R. Clower, A. Leijonhufvud and H. Minsky

The heterodoxy of Robert Clower, Axel Leijonhufvud and Hyman Minsky consisted in dispensing with the dominant assumption according to which the system spontaneously tends to a situation of full coordination. In analysing the effective disequilibrium behaviour of the system, all three came to the conclusion that monetary and financial forces have a crucial importance for coordination and that their role can be highly destabilising. Contrary to the dominant theory, all three offer useful insights to understand what is happening today.

Underlying inflation in the spanish economy: estimation and methodology

This paper presents a methodology to analyse the inflationary process in Spain. It is based on forecasts of the Consumer Price Index using quantitative models to obtain a measure of underlying inflation and the expected medium-term value of the annual price growth rate, which is called inertia in the paper. Every time a new observation becomes available, the study of the underlying inflation and inertia allows to be performed a systematic analysis of the inflationary process. The estimation of underlying inflation and inertia has also proven useful to improve the measurement of some important economic indicators such as inflation differentials and ex-ante real interest rates

Rediscovering Fiscal Policy Through Minskyan Eyes

Recent developments in macroeconomic policy, both in terms of theory and practice, have elevated monetary policy while fiscal policy has been downgraded. The latter is rarely mentioned in policy discussion, apart from arguing to place limits on budget deficits and fiscal variables. This paper presents the opposite view of Hyman P. Minsky. Rejecting the orthodox assumptions of unbounded individual and collective rationality, Minsky places uncertainty and financial instability at the centre of his analysis. The limits of individual and collective rationality feed each other, generating deviation-amplifying mechanisms that make the economy unstable. The last one thus assumes a cyclical behaviour that drives it from the torrid summers of speculative booms to the gloomy winters of financial crises, debt deflations and deep depressions. Even if Minsky is generally considered as one of the main interpreters of Keynes, according to this work his economics is very different from Keynes’s one in terms both of business cycles and of growth. In comparison with the Keynesian tradition, according to Minsky fiscal policy is even more important and effective. Government intervention is not only necessary to reach and maintain full employment; it is also indispensable to contain capitalism’s instability and to avoid the disaster. The effect of fiscal policy is not only to underpin and stabilize aggregate demand, income and employment. It has also the task to protect the robustness of the financial system by stabilizing profits and by issuing government bonds. The opening up of the economy may increase its fragility, making fiscal policy even more important. The unprecedented growth of the domestic and international financial transactions, as well as the recent financial turmoil, confirm the validity of Minsky’s insights and make his views on fiscal policy even more noteworthy and fruitful.Minsky, bounded rationality, business cycles, financial instability, fiscal policy.

Multiple sessions of transcranial direct current stimulation to the intact hemisphere improves visual function after unilateral ablation of visual cortex

Damage to cerebral systems is frequently followed by the emergence of compensatory mechanisms, which serve to reduce the effects of brain damage and allow recovery of function. Intrinsic recovery, however, is rarely complete. Non-invasive brain stimulation technologies have the potential to actively shape neural circuits and enhance recovery from brain damage. In this study, a stable deficit for detecting and orienting to visual stimuli presented in the contralesional visual hemifield was generated by producing unilateral brain damage of the right posterior parietal and contiguous visual cortical areas. A long regimen of inhibitory non-invasive transcranial directcurrent stimulation (cathodal 2mA, 20 min) was applied to the contralateral (intact) posterior parietal cortex over 14 weeks (total of 70 sessions, one per day, five days per week) and behavioral outcomes were periodically assessed. In three out of four stimulated cats, lasting recovery of visuospatial function was observed. Recovery started after 2-3 weeks of stimulation, and recovered targets were located first in the periphery, and moved to more central visual field locations with the accrual of stimulation sessions. Recovery for moving tasks followed a biphasic pattern before reaching plateau levels. Recovery did not occur for more difficult visual tasks. These findings highlight the ability of multiple sessions of transcranial direct-current stimulation to produce recovery of visuospatial function after unilateral brain damage

Forecasting Spanish inflation using information from different sectors and geographical areas

This paper evaluates different strategies to forecast Spanish inflation using information of price series for 57 products and 18 regions in Spain. We consider vector equilibrium correction (VeqC) models that include cointegration relationships between Spanish prices and prices in the regions of Valencia, Andalusia, Madrid, Catalonia and the Basque Country. This approach is consistent with economic intuition and is shown to be of tangible importance after suitable econometric evaluation. It is found that inflation forecasts can always be improved by aggregating projections from differente sectors and geographical areas. Moreover, cointegration relationships between regional and national prices must be considered in order to obtain a significantly better inflation forecast.Vector equilibrium correction models, Relative prices, Cointegration, Disaggregation

Effect of multiple reusing of simulated air showers in detector simulations

The study of high energy cosmic rays requires detailed Monte Carlo simulations of both, extensive air showers and the detectors involved in their detection. In particular, the energy calibration of several experiments is obtained from simulations. Also, in composition studies simulations play a fundamental role because the primary mass is determined by comparing experimental with simulated data. At the highest energies the detailed simulation of air showers is very costly in processing time and disk space due to the large number of secondary particles generated in interactions with the atmosphere. Therefore, in order to increase the statistics, it is quite common to recycle single showers many times to simulate the detector response. As a result, the events of the Monte Carlo samples generated in this way are not fully independent. In this work we study the artificial effects introduced by the multiple use of single air showers for the detector simulations. In particular, we study in detail the effects introduced by the repetitions in the kernel density estimators which are frequently used in composition studies.Comment: 15 pages and 4 figure