The political economy of financial repression in transition economies

Financial systems in developing countries tend to be"restricted"or"repressed"through burdensome reserve requirements, interest-rate ceilings, foreign-exchange regulations, rules about the composition of bank balance sheets, or heavy taxation of the financial sector. Why are governments drawn to regulate financial markets to the point of financial repression? To address this question, the authors explore preliminary evidence from the post-Communist economies of Eastern Europe and the former Soviet Union, where financial regulations have rarely been examined systematically. They find that public-finance framework has limited ability to explain financial repression in the transition economies, given the peculiar financial lineage of the socialist state. The weak distinction between"public"and"private"spheres of finance in transition economies means that the deficit often conveys little information about the governments'real fiscal activities. It is more fruitful to examine how political institutions, by shaping the incentives politicians face, affect financial policy. Their findings suggest that post-Communist governments may adopt repressive financial controls - not to finance deficits more cheaply than would be the caseunder financial liberalization, but to maintain the authority and ensure the survival of those in power. In countries where pre-reform elites are plentiful in legislative bodies, where interparty competition is low, and where government parties are well-represented in parliaments, elites have been able to perpetuate a system of implicit subsidies by"softening up"the financial sector - especially commercial banks - to ensure the continued flow of cheap credit to specific borrowers. The main beneficiaries of these policies - large formerly state-owned industries with tight financial links to the largest commercial banks - are thus able to convert their well-established claims on public resources into preferential access to credit lines. In other words, financial repression in transition economies may simply serve to solidify main-bank, main-firm relations. These results would lend support to the claim of smaller, cash-starved Eastern European entrepreneurs that the commercial banks have"taken over the role of the old planning ministries."Banks&Banking Reform,Financial Intermediation,Payment Systems&Infrastructure,Environmental Economics&Policies,Economic Theory&Research,Environmental Economics&Policies,National Governance,Financial Intermediation,Banks&Banking Reform,Economic Theory&Research

Plan B Earth and others vs Secretary Of State for Transport

This article analyzes an emblematic climate litigation case involving the expansion of Heathrow airport. The action, proposed in August 2018 by the NGO Plan B Earth, alleges that in drafting its national aviation policy, the British government, in the person of the Secretary of Transport, did not take into account the 2015 Paris Agreement. The first decision of the Divisional Court found that the Secretary had fulfilled his obligations to consider existing domestic climate targets. Plan B and Friends of the Earth appealed and the Court of Appeals concluded that the government’s airport expansion policy would be illegal. This decision was appealed, and in December 2020, the Supreme Court recognized the legality of the process. More than two years after the decision, the airport expansion process has not been resumed yet. This article examines the social, political and economic conjuncture of the United Kingdom; the British legal system; the legal arguments articulated by the parties and the courts; and the potential relationship of the case with the Brazilian reality, particularly with regard to issues such as active legitimacy, limits of questioning, procedural remedy, intervention of the judiciary, and the effects of international commitments in domestic policy

Equation of State for a van der Waals Universe during Reissner-Nordstrom Expansion

In a previous work [E.M. Prodanov, R.I. Ivanov, and V.G. Gueorguiev, Reissner-Nordstrom Expansion, Astroparticle Physics 27 (150-154) 2007], we proposed a classical model for the expansion of the Universe during the radiation-dominated epoch based on the gravitational repulsion of the Reissner-Nordstrom geometry - naked singularity description of particles that "grow" with the drop of the temperature. In this work we model the Universe during the Reissner-Nordstrom expansion as a van der Waals gas and determine the equation of state.Comment: 13 pages, 2 figure

Reissner-Nordstrom Expansion

We propose a classical mechanism for the cosmic expansion during the radiation-dominated era. This mechanism assumes that the Universe is a two-component gas. The first component is a gas of ultra-relativistic "normal" particles described by an equation of state of an ideal quantum gas of massless particles. The second component consist of "unusual" charged particles (namely, either with ultra-high charge or with ultra-high mass) that provide the important mechanism of expansion due to their interaction with the "normal" component of the gas. This interaction is described by the Reissner--Nordstr\"om metric purely geometrically -- the ``unusual'' particles are modeled as zero-dimensional naked singularities inside spheres of gravitational repulsion. The radius of a repulsive sphere is inversely proportional to the energy of an incoming particle or the temperature. The expansion mechanism is based on the inflating of the "unusual" particles (of charge $Q$) with the drop of the temperature -- this drives apart all neutral particles and particles of specific charge $q/m$ such that ${sign}(Q) q/m \ge - 1$. The Reissner--Nordstr\"om expansion naturally ends at recombination. We discuss the range of model parameters within which the proposed expansion mechanism is consistent with the restrictions regarding quantum effects.Comment: 9 pages, LaTe

Implant augmentation: Adding bone cement to improve the treatment of osteoporotic distal femur fractures:A biomechanical study using human cadaver bones

The increasing problems in the field of osteoporotic fracture fixation results in specialized implants as well as new operation methods, for example, implant augmentation with bone cement. The aim of this study was to determine the biomechanical impact of augmentation in the treatment of osteoporotic distal femur fractures. Seven pairs of osteoporotic fresh frozen distal femora were randomly assigned to either an augmented or nonaugmented group. In both groups, an Orthopaedic Trauma Association 33 A3 fractures was fixed using the locking compression plate distal femur and cannulated and perforated screws. In the augmented group, additionally, 1 mL of polymethylmethacrylate cement was injected through the screw. Prior to mechanical testing, bone mineral density (BMD) and local bone strength were determined. Mechanical testing was performed by cyclic axial loading (100 N to 750 N + 0.05N/cycle) using a servo-hydraulic testing machine. As a result, the BMD as well as the axial stiffness did not significantly differ between the groups. The number of cycles to failure was significantly higher in the augmented group with the BMD as a significant covariate. In conclusion, cement augmentation can significantly improve implant anchorage in plating of osteoporotic distal femur fractures

Expectation and Attention in Hierarchical Auditory Prediction

Hierarchical predictive coding suggests that attention in humans emerges from increased precision in probabilistic inference, whereas expectation biases attention in favor of contextually anticipated stimuli. We test these notions within auditory perception by independently manipulating top-down expectation and attentional precision alongside bottom-up stimulus predictability. Our findings support an integrative interpretation of commonly observed electrophysiological signatures of neurodynamics, namely mismatch negativity (MMN), P300, and contingent negative variation (CNV), as manifestations along successive levels of predictive complexity. Early first-level processing indexed by the MMN was sensitive to stimulus predictability: here, attentional precision enhanced early responses, but explicit top-down expectation diminished it. This pattern was in contrast to later, second-level processing indexed by the P300: although sensitive to the degree of predictability, responses at this level were contingent on attentional engagement and in fact sharpened by top-down expectation. At the highest level, the drift of the CNV was a fine-grained marker of top-down expectation itself. Source reconstruction of high-density EEG, supported by intracranial recordings, implicated temporal and frontal regions differentially active at early and late levels. The cortical generators of the CNV suggested that it might be involved in facilitating the consolidation of context-salient stimuli into conscious perception. These results provide convergent empirical support to promising recent accounts of attention and expectation in predictive coding

Deformations of the fermion realization of the sp(4) algebra and its subalgebras

With a view towards future applications in nuclear physics, the fermion realization of the compact symplectic sp(4) algebra and its q-deformed versions are investigated. Three important reduction chains of the sp(4) algebra are explored in both the classical and deformed cases. The deformed realizations are based on distinct deformations of the fermion creation and annihilation operators. For the primary reduction, the su(2) sub-structure can be interpreted as either the spin, isospin or angular momentum algebra, whereas for the other two reductions su(2) can be associated with pairing between fermions of the same type or pairing between two distinct fermion types. Each reduction provides for a complete classification of the basis states. The deformed induced u(2) representations are reducible in the action spaces of sp(4) and are decomposed into irreducible representations.Comment: 28 pages, LaTeX 12pt article styl

q-Analogue of Am−1⊕An−1⊂Amn−1A_{m-1}\oplus A_{n-1}\subset A_{mn-1}

A natural embedding $A_{m-1}\oplus A_{n-1}\subset A_{mn-1}$ for the corresponding quantum algebras is constructed through the appropriate comultiplication on the generators of each of the $A_{m-1}$ and $A_{n-1}$ algebras. The above embedding is proved in their $q$-boson realization by means of the isomorphism between the $\mathcal{A}_q^{-}$ (mn)$\sim {\otimes} ^n \mathcal{A}_q^{-}$(m)$\sim {\otimes}^m\mathcal{A}_q^{-}$(n) algebras.Comment: 11 pages, no figures. In memory of professor R. P. Rousse

Predicted Infrared and Raman Spectra for Neutral Ti_8C_12 Isomers

Using a density-functional based algorithm, the full IR and Raman spectra are calculated for the neutral Ti_8C_12 cluster assuming geometries of Th, Td, D2d and C3v symmetry. The Th pentagonal dodecahedron is found to be dynamically unstable. The calculated properties of the relaxed structure having C3v symmetry are found to be in excellent agreement with experimental gas phase infrared results, ionization potential and electron affinity measurements. Consequently, the results presented may be used as a reference for further experimental characterization using vibrational spectroscopy.Comment: 6 pages, 5 figures. Physical Review A, 2002 (in press