Negative Interest Rate Policies: Sources and Implications

Against the background of continued growth disappointments, depressed inflation expectations, and declining real equilibrium interest rates, a number of central banks have implemented negative interest rate policies (NIRP) to provide additional monetary policy stimulus over the past few years. This paper studies the sources and implications of NIRP. We report four main results. First, monetary transmission channels under NIRP are conceptually analogous to those under conventional monetary policy but NIRP present complications that could limit policy effectiveness. Second, since the introduction of NIRP, many of the key financial variables have evolved broadly as implied by the standard transmission channels. Third, NIRP could pose risks to financial stability, particularly if policy rates are substantially below zero or if NIRP are employed for a protracted period of time. Potential adverse consequences include the erosion of profitability of banks and other financial intermediaries, and excessive risk taking. However, there has so far been no significant evidence that financial stability has been compromised because of NIRP. Fourth, spillover implications of NIRP for emerging market and developing economies are mostly similar to those of other unconventional monetary policy measures. In sum, NIRP have a place in a policy maker's toolkit but, given their domestic and global implications, these policies need to be handled with care to secure their benefits while mitigating risks

Cool Farm Tool Water: A global on-line tool to assess water use in crop production

The agricultural sector accounts for 70% of all water consumption and poses great pressure on ground water resources. Therefore, evaluating agricultural water consumption is highly important as it allows supply chain actors to identify practices which are associated with unsustainable water use, which risk depleting current water resources and impacting future production. However, these assessments are often not feasible for crop producers as data, models and experiments are required in order to conduct them. This work introduces a new on-line agricultural water use assessment tool that provides the water footprint and irrigation requirements at field scale based on an enhanced FAO56 approach combined with a global climate, crop and soil databases. This has been included in the Cool Farm Tool \u2013 an online tool which already provides metrics for greenhouse gas emissions and biodiversity impacts and therefore allows for a more holistic assessment of environmental sustainability in farming and agricultural supply chains. The model is tested against field scale and state level water footprint data providing good results. The tool provides a practical, reliable way to assess agricultural water use, and offers a means to engage growers and stakeholders in identifying efficient water management practices

Impaired cone function and cone degeneration resulting from CNGB3 deficiency: down-regulation of CNGA3 biosynthesis as a potential mechanism

The cone cyclic nucleotide-gated (CNG) channel is essential for central and color vision and visual acuity. This channel is composed of two structurally related subunits, CNGA3 and CNGB3; CNGA3 is the ion-conducting subunit, whereas CNGB3 is a modulatory subunit. Mutations in both subunits are associated with achromatopsia and progressive cone dystrophy, with mutations in CNGB3 alone accounting for 50% of all known cases of achromatopsia. However, the molecular mechanisms underlying cone diseases that result from CNGB3 deficiency are unknown. This study investigated the role of CNGB3 in cones, using CNGB3−/− mice. Cone dysfunction was apparent at the earliest time point examined (post-natal day 30) in CNGB3−/− mice. When compared with wild-type (WT) controls: photopic electroretingraphic (ERG) responses were decreased by ∼75%, whereas scotopic ERG responses were unchanged; visual acuity was decreased by ∼20%, whereas contrast sensitivity was unchanged; cone density was reduced by ∼40%; photoreceptor apoptosis was detected; and outer segment disorganization was observed in some cones. Notably, CNGA3 protein and mRNA levels were significantly decreased in CNGB3−/− mice; in contrast, mRNA levels of S-opsin, Gnat2 and Pde6c were unchanged, relative to WT mice. Hence, we show that loss of CNGB3 reduces biosynthesis of CNGA3 and impairs cone CNG channel function. We suggest that down-regulation of CNGA3 contributes to the pathogenic mechanism by which CNGB3 mutations lead to human cone disease