The minimum liquidity deficit and the maturity structure of central banks' open market operations: lessons from the financial crisis

This paper studies the relationship between the size of the banking sector’s refinancing needs vis-à-vis the central bank and auction rates in its open market operations in times of financial market stress. In a theoretical model, it is found that marginal rates at central bank auctions may increase if the share of troubled banks becomes too high relative to the total size of the banking sector’s refinancing needs. An empirical analysis then aims at determining the size of open market operations needed to absorb large stress levels in interbank money markets and hence contain central bank auction rates. Finally, the paper analyses effects of the composition of open market operations of different maturities on auction rates. It is found that a too high share of longer-term refinancing induces a rise in auction rates which is undesirable. Therefore, the analysis suggests that there is a lower bound for the amount of liquidity provided through short-term operations. JEL Classification: G01, G10, G21Central Bank, financial crisis, money market, Open market operations

International trade, hedging and the demand for forward contracts

There is a huge literature on the effects of uncertainty on trade levels. One very strong result of that literature is that uncertainty should not matter, as long as well developed forward markets exist. The empirical implications of this result, however, are hard to find in the data. We model terms of trade uncertainty in a small open economy with uncertainty stemming from abroad and derive the equilibrium demand for forward contracts. It turns out that risk averse agents will not buy forwards at an actuarially fair price, thus rendering both the full-hedge theorem and the separation theorem of the aforementioned literature obsolete. Using real world data for Germany we calibrate our model. We find that in equilibrium risk averse agents will buy forward cover only for nvestment reasons. The amount of forwards purchased is around 20% of equilibrium imports. This is broadly in accordance with empirical observed ratios. --forward contracts,terms of trade uncertainty,hedging

Computation of Atomic Fibers of Z-Linear Maps

For given matrix $A\in\Z^{d\times n}$, the set $P_{b}=\{z:Az=b,z\in\Z^n_+\}$ describes the preimage or fiber of $b\in\Z^d$ under the $\Z$-linear map $f_A:\Z^n_+\to\Z^d$, $x\mapsto Ax$. The fiber $P_{b}$ is called atomic, if $P_{b}=P_{b_1}+P_{b_2}$ implies $b=b_1$ or $b=b_2$. In this paper we present a novel algorithm to compute such atomic fibers. An algorithmic solution to appearing subproblems, computational examples and applications are included as well.Comment: 27 page

International Trade, Hedging and the Demand for Forward Contracts

One of the main results of the literature on the effects of uncertainty on trade states that uncertainty should not matter in the presence of well developed forward markets. Empirical studies, however, do not support this result. We derive the demand for forward cover in a small open economy with terms of trade uncertainty. Adopting a standard and more realistic decision structure than the one usually used in this literature, we find that risk averse agents will not buy forwards at an unbiased price. Agents treat forward contracts as an asset rather than as an insurance. This is the reason why, when calibrating the model, only 17% of imports are covered by forwards. --

International Trade, Hedging and the Demand for Forward Contracts

There is a huge literature on the effects of uncertainty on trade levels. One very strong result of that literature is that uncertainty should not matter, as long as well developed forward markets exist. The empirical implications of this result, however, are hard to find in the data. We model terms of trade uncertainty in a small open economy with uncertainty stemming from abroad and derive the equilibrium demand for forward contracts. It turns out that risk averse agents will not buy forwards at an actuarially fair price, thus rendering both the full-hedge theorem and the separation theorem of the afore-mentioned literature obsolete. Using real world data for Germany we calibrate our model. We find that in equilibrium risk averse agents will buy forward cover only for investment reasons. The amount of forwards purchased is around 20% of equilibrium imports. This is broadly in accordance with empirical observed ratios.

Scenariji izobrazevanja mentorjev v Romuniji - k izboljsevanju pripravnistva uciteljev

The aim of this paper is to examine the induction programme for newly qualified teachers and mentor education in Estonia, providing a comparative analysis of existing Estonian and possible Romanian models of mentoring. While the Estonian induction programme has been in place for more than ten years, induction in Romania is a relatively new and has only been mandatory since 2011 (National Law of Education 1/2011). The specifics of mentor professional development within the Romanian induction framework have yet to be explicated. This paper proposes two possible scenarios suitable for the Romanian system :1) long-term regulated academic education (part of master or doctoral level studies), and 2) flexible short-term in-service education. The advantages and disadvantages of both models are examined and ways to overcome some of the disadvantages are identified. Ultimately, the paper proposes that a flexible, needsdriven system which encompasses a degree of choice will best fulfil the professional development needs of teachers who wish to become mentors. (DIPF/Orig.

Bidding behaviour in the ECB’s main refinancing operations during the financial crisis

Liquidity provision through its repo auctions has been one of the main instruments of the European Central Bank (ECB) to address the recent tensions in financial markets since summer 2007. In this paper, we analyse banks’ bidding behaviour in the ECB’s main refinancing operations (MROs) during the ongoing turmoil in money and financial markets. We employ a unique data set comprising repo auctions from March 2004 to October 2008 with bidding data from 877 counterparties. We find that increased bid rates during the turmoil can be explained by, inter alia, the increased individual refinancing motive, the increased attractiveness of the ECB’s tender operations due to its collateral framework and banks’ bidding more aggressively, i.e. at higher rates to avoid being rationed at the marginal rate in times of increased liquidity uncertainty. JEL Classification: E52, D44, C33, C34Bidding Behavior, Central Bank Auctions, Financial Market Turmoil, monetary policy instruments, Panel Sample Selection Model

The learning approaches promoted by the physics department towards the first-year students at Lund University.

In the field of educational psychology are two type of learning approaches commonly mentioned; deep learning and surface learning. These two learning approaches contains methods used by the students, for instance, memorizing (surface learning) and hypothesize (deep learning). Several previously performed studies showed a connection between a high academic level, good grades and a high usage of the methods associated with the deep learning. Deep learning is, therefore, the preferred learning approach for students. Knowledge about all student’s choice of learning is important since it can help to improve the education in many aspects. However, the physics department at Lund university lacked this knowledge about their first-year students. The present thesis is, therefore, an attempt to reveal the physics student’s level of learning approaches and how the course (FYSA01) affects the students learning approaches. The result was attained by distributing a survey, well-used in the field, called the revised two-factor study process questionnaire (R-SPQ-2F). It was distributed in the physic course over three semesters; Fall 2017, Fall 2014 and Spring 2014. An increasing usage of the students deep learning and a decreasing usage of surface learning could be noticed for two semesters, Fall 2017 and Spring 2014. The third semester, fall 2014, didn’t show any change in the student’s usage of deep learning. It showed, however, a larger decrease in surface learning than the other two semesters. In summary, these results show that the teaching of the first-year students at the physic department influences the students learning approaches. The changes in the students learning approach is most likely an impact of the supplemental instruction meetings (SI-meetings). The students meet during this session and discuss physics problems in groups together with a more experienced student leading the SI-session. Another possible explanation for the improvement could be the peer-learning used during the lectures, where students discuss problems during the lecture. Additional studies will be needed to develop a full picture of the actual influence the students received by the Physics department. This study only followed the students during their first semester. Future studies could observe the changes of the students learning approaches during a longer period. Another possible area for future research would be to investigate and compare the students learning approaches when the department is implementing new methods

Developing Quality Cultures in Teacher Education: Expanding Horizons in Relation to Quality Assurance

The Teacher Education Policy in Europe Network (TEPE) was established with the overarching aim to develop teacher education policy recommendations at institutional, national and European levels. TEPE is an academic network that builds on previous European collaborative initiatives on teacher education policy, e.g. TNTEE and EUDORA. Today, its central goals relate to: 1) Advancing research in and on Teacher Education, 2) Increasing mobility and extending the European Dimension in Teacher Education, 3) Enhancing quality through the renewal of evaluation cultures in Teacher Education