Does Inflation Targeting decrease Exchange Rate Pass-through in Emerging Countries?

In this paper, we empirically examine the effect of inflation targeting on the exchange rate pass-through to prices in emerging countries. We use a panel VAR that allows us to use a large dataset on twenty-seven emerging countries (fifteen inflation targeters and twelve inflation nontargeters). Our evidence suggests that inflation targeting in emerging countries contributed to a reduction in the pass-through to various price indexes (import prices, producer prices and consumer prices) from a higher level to a new level that is significantly different from zero. The variance decomposition shows that the contribution of exchange rate shocks to price fluctuations is more important in emerging targeters compared to nontargeters, and the contribution of exchange rate shocks to price fluctuations in emerging targeters declines after adopting inflation targeting.Inflation Targeting, Exchange Rate Pass-Through, panel VAR.

On Quantum Field Theory with Nonzero Minimal Uncertainties in Positions and Momenta

We continue studies on quantum field theories on noncommutative geometric spaces, focusing on classes of noncommutative geometries which imply ultraviolet and infrared modifications in the form of nonzero minimal uncertainties in positions and momenta. The case of the ultraviolet modified uncertainty relation which has appeared from string theory and quantum gravity is covered. The example of euclidean $\phi^4$-theory is studied in detail and in this example we can now show ultraviolet and infrared regularisation of all graphs.Comment: LaTex, 32 page

Maximal Localisation in the Presence of Minimal Uncertainties in Positions and Momenta

Small corrections to the uncertainty relations, with effects in the ultraviolet and/or infrared, have been discussed in the context of string theory and quantum gravity. Such corrections lead to small but finite minimal uncertainties in position and/or momentum measurements. It has been shown that these effects could indeed provide natural cutoffs in quantum field theory. The corresponding underlying quantum theoretical framework includes small `noncommutative geometric' corrections to the canonical commutation relations. In order to study the full implications on the concept of locality it is crucial to find the physical states of then maximal localisation. These states and their properties have been calculated for the case with minimal uncertainties in positions only. Here we extend this treatment, though still in one dimension, to the general situation with minimal uncertainties both in positions and in momenta.Comment: Latex, 21 pages, 2 postscript figure

Regional Debt in Monetary Unions: Is it Inflationary?

This paper studies the inflationary implications of interest bearing regional debt in a monetary union. Is this debt simply backed by future taxation with no inflationary consequences? Or will the circulation of region debt induce monetization by a central bank? We argue here that both outcomes can arise in equilibrium. In the model economy, there are multiple equilibria which reflect the perceptions of agents regarding the manner in which the debt obligations will be met. In one equilibrium, termed Ricardian, the future obligations are met with taxation by a regional government while in the other, termed Monetization, the central bank is induced to print money to finance the region's obligations. The multiplicity of equilibria reflects a commitment problem of the central bank. A key indicator of the selected equilibrium is the distribution of the holdings of the regional debt. We show that regional governments, anticipating central bank financing of their debt obligations, have an incentive to create excessively large deficits. We use the model to assess the impact of policy measures within a monetary union.Monetary Union ; Inflation tax ; Seigniorage ; Public debt.

Insulation impossible: monetary policy and regional fiscal spillovers in a federation

This paper studies the effects of monetary policy rules in a fiscal federation, such as the European Union. The focus of the analysis is the interaction between the fiscal policy of member countries (regions) and the monetary authority. Each of the countries structures its fiscal policy (spending and taxes) with the interests of its citizens in mind. Ricardian equivalence does not hold due to the presence of monetary frictions, modeled here as reserve requirements. When capital markets are integrated, the fiscal policy of one country influences equilibrium wages and interest rates. Under certain rules, monetary policy may respond to the price variations induced by regional fiscal policies. Depending on the type of rule it adopts, interventions by the monetary authority affect the magnitude and nature of the spillover from regional fiscal policy.Monetary Union, Inflation tax, Seigniorage, monetary rules, public debt.

Monetary rules and the spillover of regional fiscal policies in a federation.

This paper studies the effects of monetary policy rules in a fiscal federation, such as the European Union. The focus of the analysis is the interaction between the fiscal policy of member countries (regions) and the monetary authority. Each of the countries structures its fiscal policy (spending and taxes) with the interests of its citizens in mind. Ricardian equivalence does not hold due to the presence of monetary frictions, modelled here as reserve requirements. When capital markets are integrated, the fiscal policy of one country influences equilibrium wages and interest rates. Under certain rules, monetary policy may respond to the price variations induced by regional fiscal policies. Depending on the type of rule it adopts, interventions by the monetary authority affect the magnitude and nature of the spillover from regional fiscal policy.Monetary Union ; Inflation tax ; Seigniorage ; monetary rules ; public debt.

Comment on "Quantum mechanics of smeared particles"

In a recent article, Sastry has proposed a quantum mechanics of smeared particles. We show that the effects induced by the modification of the Heisenberg algebra, proposed to take into account the delocalization of a particle defined via its Compton wavelength, are important enough to be excluded experimentally.Comment: 2 page

Algebraic {qq}-Integration and Fourier Theory on Quantum and Braided Spaces

We introduce an algebraic theory of integration on quantum planes and other braided spaces. In the one dimensional case we obtain a novel picture of the Jackson $q$-integral as indefinite integration on the braided group of functions in one variable $x$. Here $x$ is treated with braid statistics $q$ rather than the usual bosonic or Grassmann ones. We show that the definite integral $\int x$ can also be evaluated algebraically as multiples of the integral of a $q$-Gaussian, with $x$ remaining as a bosonic scaling variable associated with the $q$-deformation. Further composing our algebraic integration with a representation then leads to ordinary numbers for the integral. We also use our integration to develop a full theory of $q$-Fourier transformation $F$. We use the braided addition $\Delta x=x\otimes 1+1\otimes x$ and braided-antipode $S$ to define a convolution product, and prove a convolution theorem. We prove also that $F^2=S$. We prove the analogous results on any braided group, including integration and Fourier transformation on quantum planes associated to general R-matrices, including $q$-Euclidean and $q$-Minkowski spaces.Comment: 50 pages. Minor changes, added 3 reference

Uncertainty Relation in Quantum Mechanics with Quantum Group Symmetry

We study the commutation relations, uncertainty relations and spectra of position and momentum operators within the framework of quantum group % symmetric Heisenberg algebras and their (Bargmann-) Fock representations. As an effect of the underlying noncommutative geometry, a length and a momentum scale appear, leading to the existence of minimal nonzero uncertainties in the positions and momenta. The usual quantum mechanical behaviour is recovered as a limiting case for not too small and not too large distances and momenta.Comment: 15 pages, Latex, preprint DAMTP/93-6

Kodaira-Spencer formality of products of complex manifolds

We shall say that a complex manifold $X$ is emph{Kodaira-Spencer formal} if its Kodaira-Spencer differential graded Lie algebra $A^{0,*}_X(Theta_X)$ is formal; if this happen, then the deformation theory of $X$ is completely determined by the graded Lie algebra $H^*(X,Theta_X)$ and the base space of the semiuniversal deformation is a quadratic singularity.. Determine when a complex manifold is Kodaira-Spencer formal is generally difficult and we actually know only a limited class of cases where this happen. Among such examples we have Riemann surfaces, projective spaces, holomorphic Poisson manifolds with surjective anchor map $H^*(X,Omega^1_X) o H^*(X,Theta_X)$ and every compact K"{a}hler manifold with trivial or torsion canonical bundle. In this short note we investigate the behavior of this property under finite products. Let $X,Y$ be compact complex manifolds; we prove that whenever $X$ and $Y$ are K"{a}hler, then $X imes Y$ is Kodaira-Spencer formal if and only if the same holds for $X$ and $Y$. A revisit of a classical example by Douady shows that the above result fails if the K"{a}hler assumption is droppe