Interoperability between central counterparties

In reaction to recent requests for interoperability between central counterparties of European stock markets, regulators have issued new guidelines to contain systemic risk. Our analysis confirms that the currently applied cross-CCP risk management model can be a source of contagion, particularly if applied in multilateral frameworks. While regulators' new guidelines eliminate systemic risk, this comes at the cost of an inefficiently overcollateralised clearing system. We discuss further approaches that contain systemic risk while reducing or eliminating overcollateralisation. Interoperability is of economic importance as it may contribute to the efficiency and safety of a worldwide fragmented clearing infrastructure.interoperability between central counterparties, financial network, systemic risk, netting efficiency

The political economy under monetary union: has the euro made a difference?

Economic and Monetary Union (EMU) has transformed Europe and has created an integrated pan-European economy. Much research has focused on understanding this integration process and what benefits and costs it entails. This paper identifies a political economy channel of EMU as the monetary union implies that member states had to transfer or at least curtail their policy autonomy in several areas, such as monetary policy and fiscal policy. The paper shows that EMU has helped reduce the impact of political shocks on the domestic economy of member states but magnified the transmission of political shocks within the euro area. Equally importantly, economies with a weaker track record in terms of economic and institutional quality exhibited a significantly higher sensitivity to domestic political shocks before EMU, but not thereafter. While this may entail that EMU has brought benefits to countries with a weaker economic and institutional stability by insulating them from adverse political developments at home, a potential drawback is that it may provide weaker market discipline for domestic political stability. JEL Classification: F31, F33, G14EMU, Fiscal Policy, monetary policy, political economy, political news, Stock Markets, transmission

Euro area money demand and international portfolio allocation: a contribution to assessing risks to price stability

The long-run relationship between money and prices in the euro area embedded in traditional money demand models with income and interest rates broke down after 2001. We develop a money demand model where investors hold a diversified portfolio with money, domestic and foreign stocks and long-term bonds in which, in addition to the classical wealth effect, also a size and an international portfolio allocation effects arise. The estimated model identifies three cointegrating vectors stable over the sample 1980-2007: a long-run money demand, which depends on income and all risky assets' returns, and two equilibria for the euro area and the US financial markets. Steady state equilibrium of nominal M3 growth is estimated to be about 7% in 2007 with large standard errors mainly due to uncertainty in asset prices. The gap between actual euro area M3 growth and model-based fitted or predicted values helps forecast euro area inflation. JEL Classification: E41, E44, E52, G11, G15Euro area money demand, Inflation forecasts, monetary policy, portfolio allocation

Saving behaviour and global imbalances: the role of emerging market economies

In recent years there has been considerable variation in savings patterns across countries and regions, with implications for the configuration of global current account balances, asset valuations and real interest rates. This paper looks at the empirical drivers behind these trends. It uses a reduced-form model that relates private savings to a set of economic fundamentals, while controlling for structural and institutional differences across countries. Addressing a typical shortcoming of the previous literature, estimates are obtained from a dynamic model, which accounts for cross-sectional heterogeneity. The results suggest that saving rates in emerging economies are higher than cross-country estimates based on fundamentals, particularly in Asia. Demographic factors and financial catching-up have been key drivers of the observed changes in savings in these economies. Looking ahead, the prospective population aging is likely to lead to a considerable fall in saving rates in many economies - albeit the process will take decades to unfold. Further progress in financial deepening in developing economies may be conducive to a redistribution of international saving flows and may potentially support a smoother adjustment of global imbalances. JEL Classification: E20, E60emerging economies, global imbalances, panel error correction model, pooled mean group estimation, Private savings

Ergonomics and sustainability: Towards and embrace of complexity and emergence

Technology offers a promising route to a sustainable future, and ergonomics can serve a vital role. The argument of this article is that the lasting success of sustainability initiatives in ergonomics hinges on an examination of ergonomics' own epistemology and ethics. The epistemology of ergonomics is fundamentally empiricist and positivist. This places practical constraints on its ability to address important issues such as sustainability, emergence and complexity. The implicit ethical position of ergonomics is one of neutrality, and its positivist epistemology generally puts value-laden questions outside the parameters of what it sees as scientific practice. We argue, by contrast, that a discipline that deals with both technology and human beings cannot avoid engaging with questions of complexity and emergence and seeking innovative ways of addressing these issues.No Full Tex

Mapping provision and participation in postgraduate creative arts and design

The overall aim of this research study by the Institute for Employment Studies (IES) was to provide the National Arts Learning Network (NALN) with a statistical analysis of the provision of postgraduate study in creative arts and design (CAD) subjects across the UK, and participation in such study by learners from different backgrounds. It also explored progression from undergraduate to postgraduate study and beyond, and the perceptions of potential postgraduate students. It complements the more qualitative research on experience and understanding of work and study pathways of actual and potential CAD postgraduate students from a range of backgrounds, being undertaken by researchers at the Open University

The political economy under monetary union: has the euro made a difference?

Economic and Monetary Union (EMU) has transformed Europe and has created an integrated pan-European economy. Much research has focused on understanding this integration process and what benefits and costs it entails. This paper identifies a political economy channel of EMU as the monetary union implies that member states had to transfer or at least curtail their policy autonomy in several areas, such as monetary policy and fiscal policy. The paper shows that EMU has helped reduce the impact of political shocks on the domestic economy of member states but magnified the transmission of political shocks within the euro area. Equally importantly, economies with a weaker track record in terms of economic and institutional quality exhibited a significantly higher sensitivity to domestic political shocks before EMU, but not thereafter. While this may entail that EMU has brought benefits to countries with a weaker economic and institutional stability by insulating them from adverse political developments at home, a potential drawback is that it may provide weaker market discipline for domestic political stability

Rheology in Wood Engineering

AbstractThe system strains under external loads in a certain amount of time and under the influence of the environmental factors define the rheological behavior. Rheological phenomena depend on many factors: temperature such as air humidity or moisture content of rheological system, radiations in term of intensity, duration, type - UV, IR, X, geometry of the parts; loadings in terms of intensity, variation, duration; defects; aggressive environment; composition, material properties; combinations of these factors. Rheology science is based on the theories of the strength of materials, thermodynamics, chemistry and materials science, but in terms of application, it provides a personalized analysis or diagnosis according to the condition of the structures/systems used. Wooden constructions are subjected to various loadings on both short and long durations. The joints can be elastic (flexible) if the failure occurs gradually, or plastic, if the failure occurs suddenly. Sudden failure of joints is caused by shear as predominant load because wood does not resist at shear stresses. In order to study the rheological behavior of the wood joints with metal rods under constant load, three types of joints in terms of diameters of bolts and stiffening systems were tested. They were stressed to traction force of 500 to 900N for 200 days, in real conditions of temperature (-7°C la +30°C) and humidity (from 47.8% to 83.8%). The aim of the tests were to determine the rheological behavior of wooden joints; variation of deformations in relation to the relative humidity and temperature; rate of strain and connections in determining rheological model of wood with threaded rods. It was found that the low temperatures during winter (-7…0°C) correlated with high relative humidity led to sudden changes in strain. It was observed that the high-speed deformation had a joint with the largest diameter rod (8mm). The paper highlights the rheological analysis of joints in wooden rods in real conditions of temperature and humidity, with regards to applied tension and the determination of the creep function that characterizes these types of connections, establishing the optimum diameter rods

Saving behaviour and global imbalances: the role of emerging market economies

In recent years there has been considerable variation in savings patterns across countries and regions, with implications for the configuration of global current account balances, asset valuations and real interest rates. This paper looks at the empirical drivers behind these trends. It uses a reduced-form model that relates private savings to a set of economic fundamentals, while controlling for structural and institutional differences across countries. Addressing a typical shortcoming of the previous literature, estimates are obtained from a dynamic model, which accounts for cross-sectional heterogeneity. The results suggest that saving rates in emerging economies are higher than cross-country estimates based on fundamentals, particularly in Asia. Demographic factors and financial catching-up have been key drivers of the observed changes in savings in these economies. Looking ahead, the prospective population aging is likely to lead to a considerable fall in saving rates in many economies - albeit the process will take decades to unfold. Further progress in financial deepening in developing economies may be conducive to a redistribution of international saving flows and may potentially support a smoother adjustment of global imbalances

Holistic Approach to Revitalised Old Industrial Areas

AbstractOld industrial centers, especially those in the South-eastern Europe (SEE) which had developed in a different socio-economic system, did not respond to changes in global economic trends of the post-industrial production in a timely manner. Integration in the Common European Market and transition to market economy brought a rapid breakdown of traditional industry sectors. University of Maribor participated in the international project ReTInA – Revitalization of Traditional Industrial Areas within the SEE program. The main aim of the project was to develop a method of Revitalization of old industrial areas in SEE based on a model which results from good practice, case studies and includes engagement of local and regional stakeholders. Socio-political changes in the European area very often resulted in the open question of ownership and the conflict of interests between the public and private sectors. Social responsibility in the initiators of Revitalization is also not developed sufficiently for public funds to be allocated for the preparation of the area (planning, decontamination, spatial plan, etc.) to attract the investors. In the context of the project we came to the conclusion that the SEE countries do not pursue the implementation of the European spatial development perspective policies. We established that a majority of countries do not have adequate strategies to tackle the problem of brownfields. Problems also occur due to the lack of adequate experts. Only the holistic approach to Revitalization of old industrial areas will enable us to assure a new quality to managing urban environment of the degraded cities. The long-term aim of the project is Revitalization of old industrial areas in order to provide new jobs and assure sustainable development, as well as to create synergy between providing quality living, social security and sustainability