Capital controls: myth and reality, a portfolio balance approach to capital controls

The literature on capital controls has (at least) four very serious apples-to-oranges problems: (i) There is no unified theoretical framework to analyze the macroeconomic consequences of controls; (ii) there is significant heterogeneity across countries and time in the control measures implemented; (iii) there are multiple definitions of what constitutes a "success" and (iv) the empirical studies lack a common methodology--furthermore these are significantly "overweighted" by a couple of country cases (Chile and Malaysia). In this paper, we attempt to address some of these shortcomings by: being very explicit about what measures are construed as capital controls. Also, given that success is measured so differently across studies, we sought to "standardize" the results of over 30 empirical studies we summarize in this paper. The standardization was done by constructing two indices of capital controls: Capital Controls Effectiveness Index (CCE Index), and Weighted Capital Control Effectiveness Index (WCCE Index). The difference between them lies in that the WCCE controls for the differentiated degree of methodological rigor applied to draw conclusions in each of the considered papers. Inasmuch as possible, we bring to bear the experiences of less well known episodes than those of Chile and Malaysia. Then, using a portfolio balance approach we model the effects of imposing short-term capital controls. We find that there should exist country-specific characteristics for capital controls to be effective. From these simple perspective, this rationalizes why some capital controls were effective and some were not. We also show that the equivalence in effects of price- vs. quantity-capital control are conditional on the level of short-term capital flows.

Sharing the 620-790 MHz band allocated to terrestrial television with an audio-bandwidth social service satellite system

A study was carried out to identify the optimum uplink and downlink frequencies for audio-bandwidth channels for use by a satellite system distributing social services. The study considered functional-user-need models for five types of social services and identified a general baseline system that is appropriate for most of them. Technical aspects and costs of this system and of the frequency bands that it might use were reviewed, leading to the identification of the 620-790 MHz band as a perferred candidate for both uplink and downlink transmissions for nonmobile applications. The study also led to some ideas as to how to configure the satellite system

Capital Inflows, Exchange Rate Flexibility, and Credit Booms

The prospects of expansionary monetary policies in the advanced countries for the foreseeable future have renewed the debate over policy options to cope with large capital inflows that are, at least partly, driven by low interest rates in the financial centers. Historically, capital flow bonanzas have often fueled sharp credit expansions in advanced and emerging market economies alike. Focusing primarily on emerging markets, we analyze the impact of exchange rate flexibility on credit markets during periods of large capital inflows. We show that credit grows more rapidly and its composition tilts to foreign currency in economies with less flexible exchange rate regimes, and that these results are not explained entirely by the fact that the latter attract more capital inflows than economies with more flexible regimes. Our findings thus suggest countries with less flexible exchange rate regimes may stand to benefit the most from regulatory policies that reduce banks’ incentives to tap external markets and to lend/borrow in foreign currency; these policies include marginal reserve requirements on foreign lending, currency-dependent liquidity requirements, and higher capital requirement and/or dynamic provisioning on foreign exchange loans.

Throttling for the game of Cops and Robbers on graphs

We consider the cop-throttling number of a graph $G$ for the game of Cops and Robbers, which is defined to be the minimum of $(k + \text{capt}_k(G))$, where $k$ is the number of cops and $\text{capt}_k(G)$ is the minimum number of rounds needed for $k$ cops to capture the robber on $G$ over all possible games. We provide some tools for bounding the cop-throttling number, including showing that the positive semidefinite (PSD) throttling number, a variant of zero forcing throttling, is an upper bound for the cop-throttling number. We also characterize graphs having low cop-throttling number and investigate how large the cop-throttling number can be for a given graph. We consider trees, unicyclic graphs, incidence graphs of finite projective planes (a Meyniel extremal family of graphs), a family of cop-win graphs with maximum capture time, grids, and hypercubes. All the upper bounds on the cop-throttling number we obtain for families of graphs are $O(\sqrt n)$.Comment: 22 pages, 4 figure

Force balance and membrane shedding at the Red Blood Cell surface

During the aging of the red-blood cell, or under conditions of extreme echinocytosis, membrane is shed from the cell plasma membrane in the form of nano-vesicles. We propose that this process is the result of the self-adaptation of the membrane surface area to the elastic stress imposed by the spectrin cytoskeleton, via the local buckling of membrane under increasing cytoskeleton stiffness. This model introduces the concept of force balance as a regulatory process at the cell membrane, and quantitatively reproduces the rate of area loss in aging red-blood cells.Comment: 4 pages, 3 figure

Nuclear energy density functional from chiral pion-nucleon dynamics: Isovector spin-orbit terms

We extend a recent calculation of the nuclear energy density functional in the systematic framework of chiral perturbation theory by computing the isovector spin-orbit terms: $(\vec \nabla \rho_p- \vec \nabla \rho_n)\cdot(\vec J_p-\vec J_n) G_{so}(k_f)+ (\vec J_p-\vec J_n)^2 G_J(k_f)$. The calculation includes the one-pion exchange Fock diagram and the iterated one-pion exchange Hartree and Fock diagrams. From these few leading order contributions in the small momentum expansion one obtains already a good equation of state of isospin-symmetric nuclear matter. We find that the parameterfree results for the (density-dependent) strength functions $G_{so}(k_f)$ and $G_J(k_f)$ agree fairly well with that of phenomenological Skyrme forces for densities $\rho > \rho_0/10$. At very low densities a strong variation of the strength functions $G_{so}(k_f)$ and $G_J(k_f)$ with density sets in. This has to do with chiral singularities $m_\pi^{-1}$ and the presence of two competing small mass scales $k_f$ and $m_\pi$. The novel density dependencies of $G_{so}(k_f)$ and $G_J(k_f)$ as predicted by our parameterfree (leading order) calculation should be examined in nuclear structure calculations.Comment: 9 pages, 3 figure, published in: Physical Review C68, 014323 (2003

Coargumenthood and the processing of pronouns

We report three eye-movement experiments and an offline task investigating structural constraints on pronoun resolution in different contexts. This included ‘coargument’ contexts in which a pronoun was the direct object of a verb (‘The surgeon remembered that Jonathan had noticed him’), so-called picture noun phrases (‘The surgeon remembered that Jonathan had a picture of him’) and picture noun phrases with a possessor (‘The surgeon remembered about Jonathan’s picture of him’). In each eye-movement experiment, we observed longer reading times when the nonlocal antecedent (‘the surgeon’) mismatched in stereotypical gender with the pronoun, but little evidence of the gender of the local antecedent (‘Jonathan’) influencing reading times. The offline task suggested readers occasionally interpret pronouns as referring to local antecedents, especially in non-coargument contexts. These results suggest that structural constraints constitute more highly weighted cues to antecedent retrieval than gender congruency during the initial stages of memory retrieval during pronoun resolution

Optimizing the trade-off between number of cops and capture time in Cops and Robbers

The cop throttling number $th_c(G)$ of a graph $G$ for the game of Cops and Robbers is the minimum of $k + capt_k(G)$, where $k$ is the number of cops and $capt_k(G)$ is the minimum number of rounds needed for $k$ cops to capture the robber on $G$ over all possible games in which both players play optimally. In this paper, we construct a family of graphs having $th_c(G)= \Omega(n^{2/3})$, establish a sublinear upper bound on the cop throttling number, and show that the cop throttling number of chordal graphs is $O(\sqrt{n})$. We also introduce the product cop throttling number $th_c^{\times}(G)$ as a parameter that minimizes the person-hours used by the cops. This parameter extends the notion of speed-up that has been studied in the context of parallel processing and network decontamination. We establish bounds on the product cop throttling number in terms of the cop throttling number, characterize graphs with low product cop throttling number, and show that for a chordal graph $G$, $th_c^{\times}=1+rad(G)$.Comment: 19 pages, 3 figure