Japanese Demand for M1 and Demand Deposits: Cross-Sectional and Time-Series Evidence from Japan

We investigate the relationship between money, short-term interest rates, and scale variables. We use three monetary aggregates: Ml, demand deposits, and cash currency in circulation. Regional cross- sectional data yield stable estimates of the income elasticity of demand deposits that are positive and close to unity. We impose the estimated income elasticity obtained from cross-sectional data and estimate double- log interest rate elasticities of demand for Ml velocities and demand- deposit velocities using time-series data.

Effects of External Debt on Domestic Resource Allocation in a Small Open Economy with Limited Access to the World Capital Market

This paper studies a small open economy with a large external debt. It begins by considering the long-term effects of shocks in the international capital market and domestic fiscal policy on the amount of outstanding external debt and the domestic reallocation of resources between the tradable and non-tradable goods sectors theoretically. Then, numerical examples on various shocks are illustrated to help understand those theoretical predictions. For example, an exogenous increase in government expenditures, together with an increase in the external borrowing rate, requires resource reallocation between the tradable goods sector and the non-tradable goods sector as well as a small amount of external borrowings to shift toward the new stationary equilibrium, whose welfare level worsens.

Magnetic Structure of Umbral Dots Observed with Hinode Solar Optical Telescope

High resolution and seeing-free spectroscopic observation of a decaying sunspot was done with the Solar Optical Telescope aboard Hinode satellite. The target was NOAA 10944 located in the west side of the solar surface from March 2 to March 4, 2007. The umbra included many umbral dots (UDs) with size of ~300 km in continuum light. We report the magnetic structures and Doppler velocity fields around UDs, based on the Milne-Eddington inversion of the two iron absorption lines at 6302 angstrom. The histograms of magnetic field strength(B), inclination angle(i), and Doppler velocity(v) of UDs showed a center-to-limb variation. Observed at disk center, UDs had (1)slightly smaller field strength (Delta B=-17 Gauss) and (2)relative blue shifts (Delta v=28 m s-1) compared to their surroundings. When the sunspot got close to the limb, UDs and their surroundings showed almost no difference in the magnetic and Doppler values. This center-to-limb variation can be understood by the formation height difference in a cusp-shaped magnetized atmosphere around UDs, due to the weakly magnetized hot gas intrusion. In addition, some UDs showed oscillatory light curves with multiple peaks around 10 min, which may indicate the presence of the oscillatory convection. We discuss our results in the frameworks of two theoretical models, the monolithic model (Schussler & Vogler 2006) and the field-free intrusion model (Spruit & Scharmer 2006).Comment: 8 pages, 8 figures, accepted for publication in PAS