The Independent Monetary Policy under the Fixed Exchange Regime

Using a macro-econometric model that is specified for the current Chinese economy, we investigate the performance of monetary policy in China with the assumption (which anyway will occur in the near future) that capital market was opened. Our purpose is to find how the monetary authority should response to a variety of external shocks by applying different policy tools (including required reserve ratio, buying and selling foreign exchange, the open market operation, the discount rate among others) while keeping the exchange rate within a designed regime. The Monte Carlo simulation will be used to evaluate the effectiveness of such policy reactions.

Monetary Policy and Exchange Rate Regime: Proposal for a Small and Less Developed Economy

We investigate monetary policy under the assumption that a country’s capital market is “open” under the WTO framework while the exchange rate is fixed. Our purpose is to determine if it is possible in this case for the economy to maintain an effective monetary policy for stabilizing the domestic economy. For this, we suggest two institutional restrictions. Given the restrictions, we demonstrate within a macro-dynamic model that monetary policy can still be effective. The implication of such an institutional design for an exchange rate regime is also discussed with special reference to small and less development economies.open economy trilemma; macroeconomic stability; exchange rate regime

Polarized Deep Inelastic Scattering Off the "Neutron" From Gauge/String Duality

We investigate deep inelastic scattering off the polarized "neutron" using gauge/string duality. The "neutron" corresponds to a supergravity mode of the neutral dilatino. Through introducing the Pauli interaction term into the action in $\textrm{AdS}_{5}$ space, we calculate the polarized deep inelastic structure functions of the "neutron" in supergravity approximation at large t' Hooft coupling $\lambda$ and finite $x$ with $\lambda^{-1/2}\ll x<1$. In comparison with the charged dilatino "proton," which has been obtained in the previous work by Gao and Xiao, we find the structure functions of the "neutron" are power suppressed at the same order as the ones of the "proton." Especially, we find the Burkhardt-Cottingham-like sum rule, which is satisfied in the work by Gao and Xiao, is broken due to the Pauli interaction term. We also illustrate how such a Pauli interaction term can arise naturally from higher dimensional fermion-graviton coupling through the usual Kaluza-Klein reduction.Comment: 21pages,5figures, published versio