International investment positions and exchange rate dynamics : a dynamic panel analysis

In this paper we revisit medium- to long-run exchange rate determination, focusing on the role of international investment positions. To do so, we develop a new econometric framework accounting for conditional long-run homogeneity in heterogeneous dynamic panel data models. In particular, in our model the long-run relationship between effective exchange rates and domestic as well as weighted foreign prices is a homogeneous function of a country’s international investment position. We find rather strong support for purchasing power parity in environments of limited negative net foreign asset to GDP positions, but not outside such environments. We thus argue that the purchasing power parity hypothesis holds conditionally, but not unconditionally, and that international investment positions are an essential component to characterizing this conditionality. Finally, we adduce evidence that whether deterioration of a country’s net foreign asset to GDP position leads to a depreciation of that country’s effective exchange rate depends on its rate of inflation relative to the rate of inflation abroad as well as its exposure to global shocks. JEL Classification: F31, F37, C2

Deligne Categories in Lattice Models and Quantum Field Theory, or Making Sense of O(N)O(N) Symmetry with Non-integer NN

When studying quantum field theories and lattice models, it is often useful to analytically continue the number of field or spin components from an integer to a real number. In spite of this, the precise meaning of such analytic continuations has never been fully clarified, and in particular the symmetry of these theories is obscure. We clarify these issues using Deligne categories and their associated Brauer algebras, and show that these provide logically satisfactory answers to these questions. Simple objects of the Deligne category generalize the notion of an irreducible representations, avoiding the need for such mathematically nonsensical notions as vector spaces of non-integer dimension. We develop a systematic theory of categorical symmetries, applying it in both perturbative and non-perturbative contexts. A partial list of our results is: categorical symmetries are preserved under RG flows; continuous categorical symmetries come equipped with conserved currents; CFTs with categorical symmetries are necessarily non-unitary.Comment: 59 pages, many figures; v3 typos fixed, version submitted to journa

A model for a non-minimally coupled scalar field interacting with dark matter

In this work we investigate the evolution of a Universe consisted of a scalar field, a dark matter field and non-interacting baryonic matter and radiation. The scalar field, which plays the role of dark energy, is non-minimally coupled to space-time curvature, and drives the Universe to a present accelerated expansion. The non-relativistic dark matter field interacts directly with the dark energy and has a pressure which follows from a thermodynamic theory. We show that this model can reproduce the expected behavior of the density parameters, deceleration parameter and luminosity distance.Comment: 3 pages, 4 figures. To appear in Brazilian Journal of Physic

International Investment Positions and Exchange Rate Dynamics: A Dynamic Panel Analysis

In this paper we revisit medium- to long-run exchange rate determination, focusing on the role of international investment positions. To do so, we develop a new econometric framework accounting for conditional long-run homogeneity in heterogeneous dynamic panel data models. In particular, in our model the long-run relationship between effective exchange rates and domestic as well as weighted foreign prices is a homogeneous function of a country’s international investment position. We find rather strong support for purchasing power parity in environments of limited negative net foreign asset to GDP positions, but not outside such environments. We thus argue that the purchasing power parity hypothesis holds conditionally, but not unconditionally, and that international investment positions are an essential component to characterizing this conditionality. Finally, we adduce evidence that whether deterioration of a country’s net foreign asset to GDP position leads to a depreciation of that country’s effective exchange rate depends on its rate of inflation relative to the rate of inflation abroad as well as its exposure to global shocks.exchange rate determination, international financial integration, dynamic panel data models

International investment positions and exchange rate dynamics: a dynamic panel analysis

In this paper we revisit medium- to long-run exchange rate determination, focusing on the role of international investment positions. To do so, we develop a new econometric framework accounting for conditional long-run homogeneity in heterogeneous dynamic panel data models. In particular, in our model the long-run relationship between effective exchange rates and domestic as well as weighted foreign prices is a homogeneous function of a country's international investment position. We find rather strong support for purchasing power parity in environments of limited negative net foreign asset to GDP positions, but not outside such environments. We thus argue that the purchasing power parity hypothesis holds conditionally, but not unconditionally, and that international investment positions are an essential component to characterizing this conditionality. Finally, we adduce evidence that whether deterioration of a country's net foreign asset to GDP position leads to a depreciation of that country's effective exchange rate depends on its rate of inflation relative to the rate of inflation abroad as well as its exposure to global shocks. --Exchange Rate Determination,International Financial Integration,Dynamic Panel Data Models

Maternal haemodynamic function differs in pre‐eclampsia when it is associated with a small‐for‐gestational‐age newborn: a prospective cohort study

Objective To describe maternal haemodynamic differences in gestational hypertension with small‐for‐gestational‐age babies (HDP + SGA), gestational hypertension with appropriate‐for‐gestational‐age babies (HDP‐only) and control pregnancies. Design Prospective cohort study. Setting Tertiary Hospital, UK. Population Women with gestational hypertension and healthy pregnant women. Methods Maternal haemodynamic indices were measured using a non‐invasive Ultrasound Cardiac Output Monitor (USCOM‐1A®) and corrected for gestational age and maternal characteristics using device‐specific reference ranges. Main outcome measures Maternal cardiac output, stroke volume, systemic vascular resistance. Results We included 114 HDP + SGA, 202 HDP‐only and 401 control pregnancies at 26–41 weeks of gestation. There was no significant difference in the mean arterial blood pressure (110 versus 107 mmHg, P = 0.445) between the two HDP groups at presentation. Pregnancies complicated by HDP + SGA had significantly lower median heart rate (76 versus 85 bpm versus 83 bpm), lower cardiac output (0.85 versus 0.98 versus 0.97 MoM) and higher systemic vascular resistance (1.4 versus 1.0 versus 1.2 MoM) compared with control and HDP‐only pregnancies, respectively (all P < 0.05). Conclusion Women with HDP + SGA present with more severe haemodynamic dysfunction than HDP‐only. Even HDP‐only pregnancies exhibit impaired haemodynamic indices compared with normal pregnancies, supporting a role of the maternal cardiovascular system in gestational hypertension irrespective of fetal size. Central haemodynamic changes may play a role in the pathogenesis of pre‐eclampsia and should be considered alongside placental aetiology