Microeconomic Shocks, Depreciation and Inflation: an Australian Perspective

The general equilibrium approach demonstrates that macroeconomic shocks link the exchange rate and the inflation rate through diverse transmission channels. Therefore, the one-track focus of the partial equilibrium 'pass-through' approach that predicts that exchange rate depreciation causes inflation is flawed does not explain the exchange rate inflation dynamics of post-float australia. In this paper based on a mundell-fleming stochastic rational expectations model the theoretical priors that link exogenous shocks and macro-variables such variables real exchange rate, relative prices and relative output have been identified. Thereafter, the structural var (svar) methodology has been deployed to the identify the exogenous shocks by appealing to the long-run classical neutrality postulates. The dynamic interactions between shocks and macro-variables have been empirically reviewed using innovation accounting.

Inflation Targeting Macroeconomic Distortions and the Policy Reaction Function

The paper examines the evolution of monetary policy design in Australia over the past quarter of a century culminating recently in the adoption of an inflation targeting approach through the institutional mechanism of CBI (Central Bank Independence). Cross-country empirics have repeatedly confirmed the stylized fact that high CBI delivers low inflation. This study covers new ground by using time-series techniques to test the nexus between CBI and inflation using Australian quarterly time-series data for the sample period 1973Q3-1998Q4. The theoretical analysis based on a quadratic social loss function subject to a Lucas supply curve demonstrates that the exclusive focus on the institutional mechanism of CBI to reduce inflation bias may be flawed because it ignores the spillover effects of macroeconomic distortions on inflation. Time-series composite indices were constructed to proxy CBI and macroeconomic distortions in the labour market, the tax system and in the arena of international competition. The general-to-specific methodology was applied to sequentially derive a parsimonious VECM (Vector Error Correction Model) linking CBI and macroeconomic distortions to inflation during the study period. Granger causality tests indicated that both CBI and macroeconomic distortions Granger caused inflation. The VECM empirics revealed that CBI and neocorporatism contributed in a significant manner to reduction of inflation during the study period. The fact that neocorporatism curbed inflation during the study period raises the issue that the industrial relations reforms agenda aimed at eroding neocorporatism are politically motivated and lack an economic rationale. However, when the link between inflation and neocorporatism was reanalyzed taking feedback effects into account using the VAR methodology a different picture emerged. The impulse response functions revealed that an increase in neocorporatism exacerbated inflation in the short run. Thus the VAR empirics therefore provided a rationale for the labour market reforms aimed at rectifying labour market distortion attributed to neocorporatism. Both the VECM and VAR empirics make a strong case for tax reform in order to reduce welfare payments without compromising on safety net and equity issues. It also makes a case for reducing the volatility or the real exchange rate to sharpen Australia's competitive edge. The significance of macroeconomic distortions in causing output to deviate from potential underscore that the policy reaction function is influenced by distortions. Non-nested tests revealed that the Taylor rule taking account of deviations of output from potential due to macro distortions was superior to an inflation rate only rule. Therefore the study results recommend that policymaker (Reserve Bank of Australia) should pursue a Taylor rule rather than inflation rate only rule in smoothing the overnight cash rate to achieve the pre-announced inflation target.

Rival Macroeconomic Models And Australian Stylised Facts

This paper reports the stylised facts resulting from the tests of rival macroeconomic models in explaining the Australian business cycle during the sample period 1966(3)-1995(3). The dominant rival paradigms such as the New Classical, Keynesian the Real Business Cycle theories have been tested using both Granger causality and non-nested testing techniques. The time-series data used for modelling the rival paradigms were processed using unit root and cointegration econometrics to guard against possible spurious regression inferences due to nonstationarity in the data. Parsimonious data congruent models for testing the rival paradigms were derived by the application of the general-to-specific methodology. The problem of non-spherical errors created by the use of generated regressors in the specification of business cycle models was tackled by replacing ordinary least squares by generalised least squares estimates. The empirical results supported the conclusion that hybrid macroeconomic paradigms encompassing both demand and supply side shocks provide more plausible explanations of the Australian business cycle than tests narrowly focussed only on demand side shocks. The study results challenges the narrow view that rival macroeconomic theories would have failed to provide meaningful guidelines to Australian policymakers to implement counter-cyclical policies during the study period.

Export Response to the Reduction of Anti-Export Bias: Empirics from Bangladesh

The paper assesses the relationship between export growth of Bangladesh and trade liberalisation, the latter being proxied by the reduction of anti-export bias. In the empirical analysis, separate supply equations for total exports, (total) manufacturing exports, and textiles and readymade garment exports have been undertaken using quarterly time series data. The empirical results, based on vector error correction modelling (VECM), show that trade liberalisation has both long run and contemporaneous effects on total exports, manufacturing exports, and textiles and readymade garment exports supply. Besides, domestic price, export price, anti-export bias reduction, the degree of openness and production capacity all have either unidirectional or bi-directional causality between them.

IN VITRO AND IN VIVO ASSESSMENT OF RATE AND EXTENT OF STARCH DIGESTIBILITY IN WESTERN CANADIAN WHEAT MARKET CLASSES AND CULTIVARS IN BROILER CHICKENS

Two experiments were conducted to investigate the effect of Western Canadian wheat market classes and cultivars on rate and extent of starch digestibility in broiler chickens. The first experiment was an in vitro trial to determine starch digestibility rate and extent by mimicking chicken gastric and small intestinal (SI) phases. The study evaluated 18 spring wheat cultivars from eight Western Canadian wheat market classes. Each cultivar was replicated four times by growing them at four separate plots in a field nursery at Saskatoon, SK. Grain characteristics of these wheat cultivars were analyzed to determine the relationship with starch digestibility. The second experiment was designed to investigate genotypic variability of starch digestibility rate and extent, and also AMEn using broiler chickens. A total of 468 1-d-old male broiler chickens were randomly assigned to dietary treatments (6 cages/treatment, 6 birds/cage) from 0 to 21 day of age. The study evaluated two wheat cultivars from each of six Western Canadian wheat classes (selected according to the results of Experiment 1). Wheat cultivars were also subjected to in vitro starch digestion and grain characteristic analysis. Experiments 1 and 2 were completely randomized and randomized complete block designs, respectively. Wheat cultivars were nested within wheat market classes in both experiments. Differences were considered significant when P < 0.05. Pearson correlation was used to determine correlations. In vitro starch digestibility was affected by wheat market class and cultivar nested within class according to results of Experiment 1. Starch digestibility ranges of wheat classes for the selected SI phase times are as follows: 15 min – 33.1 to 49.1%, 60 min – 80.2 to 93.3% and 120 min – 92.4 to 97.6%. Low to moderate positive correlations were found for starch digestibility rate and extent with CP, ash, NSP and large granule size distribution, whereas negative correlations were found with total starch (TS), and small and medium granule proportions. According to Experiment 2 results, the starch digestibility ranges were: proximal jejunum – 23.7 to 50.6%; distal jejunum – 63.5 to 76.4%; proximal ileum – 88.7 to 96.9%; distal ileum – 94.4 to 98.5%; excreta – 98.4 to 99.3%. Wheat class affected wheat AMEn with levels ranging from 3203 to 3411 kcal/kg at 90% DM. In vivo starch digestibility in all four segments of SI and total tract starch digestibility were affected by wheat market class. Moderate positive correlations were found for in vitro starch digestibility with CP and large granule size distribution, whereas it was negative with TS, and small and medium granule proportions. There were moderate positive correlations for in vivo starch digestibility with wheat hardness and ash content. Significant and moderate strong positive correlations were observed between in vitro and in vivo starch digestion rate, but no correlations were found between AMEn and starch digestion rate. In conclusion, rate and extent of both in vitro and in vivo starch digestibility and AMEn were affected by Western Canadian wheat class, but starch digestibility did not predict wheat AMEn. The in vitro starch digestion model may have application in screening large numbers of samples for starch digestibility in poultry. Further, grain characteristics were related to differences in the rate and extent of starch digestion of Western Canadian wheat classes and cultivars, but to a limited degree

Alginate nanoparticles protect ferrous from oxidation: Potential iron delivery system

A novel, efficient delivery system for iron (Fe²⁺) was developed using the alginate biopolymer. Iron loaded alginate nanoparticles were synthesized by a controlled ionic gelation method and was characterized with respect to particle size, zeta potential, morphology and encapsulation efficiency. Successful loading was confirmed with Fourier Transform Infrared spectroscopy and Thermogravimetric Analysis. Electron energy loss spectroscopy study corroborated the loading of ferrous into the alginate nanoparticles. Iron encapsulation (70%) was optimized at 0.06% Fe (w/v) leading to the formation of iron loaded alginate nanoparticles with a size range of 15-30nm and with a negative zeta potential (-38mV). The in vitro release studies showed a prolonged release profile for 96h. Release of iron was around 65-70% at pH of 6 and 7.4 whereas it was less than 20% at pH 2.The initial burst release upto 8h followed zero order kinetics at all three pH values. All the release profiles beyond 8h best fitted the Korsmeyer-Peppas model of diffusion. Non Fickian diffusion was observed at pH 6 and 7.4 while at pH 2 Fickian diffusion was observed.This research was financially supported by the HETC QIG Win 3 grant, University of Peradeniya, Peradeniya, Sri Lanka

Effect of Lipid Composition on In Vitro

Liposomal encapsulation improves numerous physiochemical and biological properties of curcumin. The aim of this work was to impart slow release and skin delivery of curcumin via liposomal encapsulation. Liposomes were made using egg yolk phosphatidylcholine as the staple lipid while incorporating polysorbate 80 and stearylamine to prepare hybrid liposomes and positively charged liposomes, respectively. Negatively charged liposomes exhibited the highest encapsulation efficiencies (87.8±4.3%) and loading capacities (3.4±0.2%). The sizes of all formulations were about 250 nm, while stearylamine increased the polydispersity index. Positively charged liposomes showed lower degradation temperatures than negatively charged liposomes by 10–15°C, attributable to the presence of stearylamine. The melting temperatures of positively charged liposomes (40–50°C) were much higher than those of negatively charged liposomes (14-15°C), which may have affected release and skin deposition behavior of liposomes. The positively charged liposomes exhibited the slowest release of curcumin in phosphate buffered saline (pH 6.8) and the release profiles of all liposomal formulations conformed to the Gompertz model. The negatively charged liposomes facilitated the highest skin deposition of curcumin as revealed by studies conducted using excised pig ear skin. Concisely, positively and negatively charged liposomes were optimal for slow release and skin deposition of curcumin, respectively

Navigating a Social Justice Motivation and Praxis as Student Affairs Professionals

While diversity and social justice are espoused values of the field of student affairs, student affairs professionals are socialized to varying degrees in regard to the awareness, knowledge, and skills necessary to be social justice advocates. Through qualitative interviews with nine entry- and mid-level student affairs professionals, we explored the motivations and experiences of student affairs professionals who enact values of social justice in their praxis. Participants shared strategies to navigating the field and their advocacy, the influence of theirs and others’ identities on their work, techniques for implementing intentional social justice praxis, challenges faced in their advocacy, and how they practice self-care