How should we respond to asset price bubbles?

This paper examines how economic policy should respond to possible asset price bubbles. Three questions are considered: • Are some asset price bubbles more problematic than others? • How should monetary policy respond to asset price bubbles? • What other types of policy responses are appropriate? I conclude that asset price bubbles associated with credit booms present particular challenges because their bursting can lead to episodes of financial instability that have damaging effects on the economy. Monetary policy should not react to asset price bubbles per se, but rather to changes in the outlook for inflation and aggregate demand resulting from asset price movements. However, regulatory policies and supervisory practices should respond to possible asset price bubbles and help prevent feedback loops between asset price bubbles and credit provision, thereby minimising the damaging effects of bubbles on the economy.

The role of credit ratings on capital structure and its speed of adjustment: an international study

Using an international dataset, we examine the role of issuers’ credit ratings in explaining corporate leverage and the speed with which firms adjust toward their optimal level of leverage. We find that, in countries with a more market-oriented financial system, the impact of credit ratings on firms’ capital structure is more significant and that firms with a poorer credit rating adjust more rapidly. Furthermore, our results show some striking differences in the speed of adjusting capital structure between firms rated as speculative and investment grade, with the former adjusting much more rapidly. As hypothesized, those differences are statistically significant only for firms based in a more market-oriented economy

Modelling of Things on the Internet for the Search by the Human Brain

Part 4: Intelligent Computational SystemsInternational audienceThe Internet has become the main source of information for business and research activities. Despite the value of libraries supported by computational cataloging, there are far more opportunities to retrieve information on the Internet than in paper books. However, when we seek the Internet we get essentially chunks of text with titles and descriptors resulting from search engine’s activity. Albeit some information may contain sensorial or emotional contents, the search results come essentially from algorithmic execution over keywords by relevance. Our brain retrieves information about things in real world by capturing sensorial information and storing it with emotional experience. We can question why things in Internet are not represented in a similar way to human brain. The present research aims to support a new type of search by sensations and emotions in a path to model Things in Internet towards a human-like representation of objects and events, based on lessons learned from the human brain

Impairment on a self-ordered working memory task in patients with early-acquired hippocampal atrophy

One of the features of both adult-onset and developmental forms of amnesia resulting from bilateral medial temporal lobe damage, or even from relatively selective damage to the hippocampus, is the sparing of working memory. Recently, however, a number of studies have reported deficits on working memory tasks in patients with damage to the hippocampus and in macaque monkeys with neonatal hippocampal lesions. These studies suggest that successful performance on working memory tasks with high memory load require the contribution of the hippocampus. Here we compared performance on a working memory task (the Self-ordered Pointing Task), between patients with early onset hippocampal damage and a group of healthy controls. Consistent with the findings in the monkeys with neonatal lesions, we found that the patients were impaired on the task, but only on blocks of trials with intermediate memory load. Importantly, only intermediate to high memory load blocks yielded significant correlations between task performance and hippocampal volume. Additionally, we found no evidence of proactive interference in either group, and no evidence of an effect of time since injury on performance. We discuss the role of the hippocampus and its interactions with the prefrontal cortex in serving working memory

Evaluation of Retinal Image Quality Assessment Networks in Different Color-spaces

Retinal image quality assessment (RIQA) is essential for controlling the quality of retinal imaging and guaranteeing the reliability of diagnoses by ophthalmologists or automated analysis systems. Existing RIQA methods focus on the RGB color-space and are developed based on small datasets with binary quality labels (i.e., `Accept' and `Reject'). In this paper, we first re-annotate an Eye-Quality (EyeQ) dataset with 28,792 retinal images from the EyePACS dataset, based on a three-level quality grading system (i.e., `Good', `Usable' and `Reject') for evaluating RIQA methods. Our RIQA dataset is characterized by its large-scale size, multi-level grading, and multi-modality. Then, we analyze the influences on RIQA of different color-spaces, and propose a simple yet efficient deep network, named Multiple Color-space Fusion Network (MCF-Net), which integrates the different color-space representations at both a feature-level and prediction-level to predict image quality grades. Experiments on our EyeQ dataset show that our MCF-Net obtains a state-of-the-art performance, outperforming the other deep learning methods. Furthermore, we also evaluate diabetic retinopathy (DR) detection methods on images of different quality, and demonstrate that the performances of automated diagnostic systems are highly dependent on image quality.Comment: Accepted by MICCAI 2019. Corrected two typos in Table 1 as: (1) in training set, the number of "Usable + All" should be '1,876'; (2) In testing set, the number of "Total + DR-0" should be '11,362'. Project page: https://github.com/hzfu/Eye

The macroeconomics of a financial Dutch disease

We describe the medium-run macroeconomic effects and long-run development consequences of a financial Dutch disease that may take place in a small developing country with abundant natural resources. The first move is in financial markets. An initial surge in foreign direct investment targeting natural resources sets in motion a perverse cycle between exchange rate appreciation and mounting short- and medium-term capital flows. Such a spiral easily leads to exchange rate volatility, capital reversals, and sharp macroeconomic instability. In the long run, macroeconomic instability and overdependence on natural resource exports dampen the development of nontraditional tradable goods sectors and curtail labor productivity dynamics. We advise the introduction of constraints to short- and medium-term capital flows to tame exchange rate/capital flows boom-and-bust cycles. We support the implementation of a developmentalist monetary policy targeting competitive nominal and real exchange rates in order to encourage product and export diversification

Exogenous spatial precuing reliably modulates object processing but not object substitution masking

Object substitution masking (OSM) is used in behavioral and imaging studies to investigate processes associated with the formation of a conscious percept. Reportedly, OSM occurs only when visual attention is diffusely spread over a search display or focused away from the target location. Indeed, the presumed role of spatial attention is central to theoretical accounts of OSM and of visual processing more generally (Di Lollo, Enns, & Rensink, Journal of Experimental Psychology: General 129:481–507, 2000). We report a series of five experiments in which valid spatial precuing is shown to enhance the ability of participants to accurately report a target but, in most cases, without affecting OSM. In only one experiment (Experiment 5) was a significant effect of precuing observed on masking. This is in contrast to the reliable effect shown across all five experiments in which precuing improved overall performance. The results are convergent with recent findings from Argyropoulos, Gellatly, and Pilling (Journal of Experimental Psychology: Human Perception and Performance 39:646–661, 2013), which show that OSM is independent of the number of distractor items in a display. Our results demonstrate that OSM can operate independently of focal attention. Previous claims of the strong interrelationship between OSM and spatial attention are likely to have arisen from ceiling or floor artifacts that restricted measurable performance