Implications of globalisation for financial stability.

Asia’s share of world trade has expanded constantly over the last two decades. This increase reflects, inter alia, the considerable strengthening of trade links between the countries of the region, fostered by the vertical specialisation of the Asian economies. In the 1980s, the most advanced economies in the region, e.g. Japan, relocated the most labour-intensive stages of their production processes to the newly-industrialised Asian economies like South Korea and Singapore and then, in the 1990s, to emerging Asia, i.e. Indonesia, Malaysia, the Philippines and Thailand. The emergence of China has also given signifi cant impetus to regional trade integration. Surging intra-regional direct investment fl ows have accompanied and shored up trade fl ows, however, portfolio investment fl ows and cross-border bank loans have remained limited. Given that production processes within the region are complementary and that the final destination for exports is outside the region, the lack of a regional exchange rate arrangement in Asia does not appear to be a concern in the short term. Indeed, the regional integration initiatives adopted in Asia in the aftermath of the 1997-1998 financial crisis aim to build further resilience to fi nancial market turbulence. Firstly, deeper and more liquid local bond markets should make it possible to reduce the double financial mismatch, i.e. the currency mismatch and maturity mismatch, which largely sustained the crisis. In this regard, the ASEAN+3 Asian Bond Market Initiative examines the supply-side issues while the Asian Bond Funds initiative of the Executives’ Meeting of East Asia-Pacifi c Central Banks (EMEAP) deals with demand-side issues via the pooling of resources to buy bonds issued by member countries. Secondly, the Chiang Mai Initiative, which consists in a network of currency swap arrangements between the central banks of the ASEAN+3 member states, provides these countries with a regional fi nancial assistance mechanism in the event of a liquidity crisis. The Asian vertical model of production appears to have reached its limit and is evolving towards a more “horizontal” model in terms of both production (substitutability of production processes as a result of the shift towards higher value-added activities) and consumption (expansion of the regional market linked to the growth potential of domestic Chinese demand). Regional monetary co-operation could therefore aim in the future at curbing intra-regional exchange rate fl uctuations in order to promote trade and investment within the region.

Hard Thermal Loops in the n-Dimensional phi3 Theory

We derive a closed-form result for the leading thermal contributions which appear in the n-dimensional phi3 theory at high temperature. These contributions become local only in the long wavelength and in the static limits, being given by different expressions in these two limits.Comment: 3 pages, one figure. To be published in the Brazilian Journal of Physic

The 3-graviton vertex function in thermal quantum gravity

The high temperature limit of the 3-graviton vertex function is studied in thermal quantum gravity, to one loop order. The leading ($T^4$) contributions arising from internal gravitons are calculated and shown to be twice the ones associated with internal scalar particles, in correspondence with the two helicity states of the graviton. The gauge invariance of this result follows in consequence of the Ward and Weyl identities obeyed by the thermal loops, which are verified explicitly.Comment: 19 pages, plain TeX, IFUSP/P-100

Dressing Symmetries of Holomorphic BF Theories

We consider holomorphic BF theories, their solutions and symmetries. The equivalence of Cech and Dolbeault descriptions of holomorphic bundles is used to develop a method for calculating hidden (nonlocal) symmetries of holomorphic BF theories. A special cohomological symmetry group and its action on the solution space are described.Comment: 14 pages, LaTeX2

Vertex-algebraic structure of the principal subspaces of certain A_1^(1)-modules, I: level one case

This is the first in a series of papers in which we study vertex-algebraic structure of Feigin-Stoyanovsky's principal subspaces associated to standard modules for both untwisted and twisted affine Lie algebras. A key idea is to prove suitable presentations of principal subspaces, without using bases or even ``small'' spanning sets of these spaces. In this paper we prove presentations of the principal subspaces of the basic A_1^(1)-modules. These convenient presentations were previously used in work of Capparelli-Lepowsky-Milas for the purpose of obtaining the classical Rogers-Ramanujan recursion for the graded dimensions of the principal subspaces.Comment: 20 pages. To appear in International J. of Mat

The graviton self-energy in thermal quantum gravity

We show generally that in thermal gravity, the one-particle irreducible 2-point function depends on the choice of the basic graviton fields. We derive the relevant properties of a physical graviton self-energy, which is independent of the parametrization of the graviton field. An explicit expression for the graviton self-energy at high-temperature is given to one-loop order.Comment: 13 pages, 2 figure

Hard thermal effective action in QCD through the thermal operator

Through the application of the thermal operator to the zero temperature retarded Green's functions, we derive in a simple way the well known hard thermal effective action in QCD. By relating these functions to forward scattering amplitudes for on-shell particles, this derivation also clarifies the origin of important properties of the hard thermal effective action, such as the manifest Lorentz and gauge invariance of its integrand.Comment: 6 pages, contribution of the quarks to the effective action included and one reference added, version to be published in Phys. Rev.

General structure of the graviton self-energy

The graviton self-energy at finite temperature depends on fourteen structure functions. We show that, in the absence of tadpoles, the gauge invariance of the effective action imposes three non-linear relations among these functions. The consequences of such constraints, which must be satisfied by the thermal graviton self-energy to all orders, are explicitly verified in general linear gauges to one loop order.Comment: 4 pages, minor corrections of typo