Entanglement for all quantum states

It is shown that a state that is factorizable in the Hilbert space corresponding to some choice of degrees of freedom, becomes entangled for a different choice of degrees of freedom. Therefore, entanglement is not a special case but is ubiquitous in quantum systems. Simple examples are calculated and a general proof is provided. The physical relevance of the change of tensor product structure is mentioned.Comment: 9 page

Financial globalization : unequal blessings

The authors present a framework to analyze financial globalization. They argue that financial globalization needs to take into account the relation between money (particularly in its role as store of value), asset and factor price flexibility, and contractual and regulatory institutions. Countries that have the"blessed trinity"(international currency, flexible exchange rate regime, and sound contractual and regulatory environment) can integrate successfully into the world financial markets. But developing countries normally display the"unblessed trinity"(weak currency, fear of floating, and weak institutional framework). The authors define and discuss two alternative avenues (a"dollar trinity"and a"peso trinity") for developing countries to safely embrace international financial integration while the blessed trinity remains beyond reach.Economic Theory&Research,Fiscal&Monetary Policy,Banks&Banking Reform,Payment Systems&Infrastructure,Financial Intermediation,Financial Economics,Macroeconomic Management,Economic Stabilization,Economic Theory&Research,Fiscal&Monetary Policy

Capital market development : whither Latin America ?

Over the past decades, many countries have implemented significant reforms to foster capital market development. Latin American countries were at the forefront of this process. The authors analyze where Latin American capital markets stand after these reforms. They find that despite the intense reform effort, capital markets in Latin America remain underdeveloped relative to markets in other regions. Furthermore, stock markets are below what can be expected, given Latin America's economic and institutional fundamentals. The authors discuss alternative ways of interpreting this evidence. They argue that it is difficult to pinpoint which policies Latin American countries should pursue to overcome their poor capital market development. Moreover, they argue that expectations about the outcome of the reform process may need to be revisited to take into account intrinsic characteristics of emerging economies. The latter may limit the scope for developing deep domestic capital markets in a context of international financial integration.Markets and Market Access,Economic Theory&Research,Access to Markets,Financial Economics,Financial Intermediation

Living and dying with hard pegs : the rise and fall of Argentina's currency board

The rise and fall of Argentina's currency board shows the extent to which the advantages of hard pegs have been overstated. The currency board did provide nominal stability and boosted financial intermediation, at the cost of endogenous financial dollarization, but did not foster monetary or fiscal discipline. The failure to adequately address the currency-growth-debt trap into which Argentina fell at the end of the 1990s precipitated a run on the currency and the banks, followed by the abandonment of the currency board and a sovereign debt default. The crisis can be best interpreted as a bad outcome of a high-stakes strategy to overcome a weak currency problem. To increase the credibility of the hard peg, the government raised its exit costs, which deepened the crisis once exit could no longer be avoided. But some alternative exit strategies would have been less destructive than the one adopted.Economic Theory&Research,Banks&Banking Reform,Fiscal&Monetary Policy,Payment Systems&Infrastructure,Financial Intermediation,Banks&Banking Reform,Fiscal&Monetary Policy,Financial Intermediation,Financial Economics,Economic Theory&Research

Financial globalization: Unequal blessings

This paper presents a framework to analyze financial globalization. It argues that financial globalization needs to take into account the relation between money (particularly in its role as store of value), asset and factor price flexibility, and contractual and regulatory institutions. Countries that have the “blessed trinity” (international currency, flexible exchange rate regime, and sound contractual and regulatory environment) can integrate successfully into the (imperfect) world financial markets. But developing countries normally display the “unblessed trinity” (weak currency, fear of floating, and weak institutional framework). The paper defines and discusses two alternative avenues (a “dollar trinity” and a “peso trinity”) for developing countries to safely embrace international financial integration while the blessed trinity remains beyond reach.

Innovative experiences in access to finance : market friendly roles for the visible hand ?

Interest in access to finance has increased significantly in recent years, as growing evidence suggests that lack of access to credit prevents lower-income households and small firms from financing high return investment projects, having an adverse effect on growth and poverty alleviation. This study describes some recent innovative experiences to broaden access to credit. These experiences are consistent with an emerging new view that recognizes a limited role for the public sector in financial markets, but contends that there might be room for well-designed, restricted interventions in collaboration with the private sector to foster financial development and broaden access. The authors illustrate this view with several recent experiences inLatin America and then discuss some open policy questions about the role of the public and private sectors in driving these financial innovations.Debt Markets,Banks&Banking Reform,,Emerging Markets,Bankruptcy and Resolution of Financial Distress

Stock market development under globalization : whither the gains from reforms ?

Over the past decades, many countries have implemented significant reforms to foster domestic capital market development. These reforms included stock market liberalization, privatization programs, and the establishment of regulatory and supervisory frameworks. Despite the intense reform efforts, the performance of capital markets in several countries has been disappointing. To study whether reforms have had the intended effects on capital markets, the authors analyze the impact of six capital market reforms on domestic stock market development and internationalization using event studies. They find that reforms tend to be followed by significant increases in domestic market capitalization, trading, and capital raising. Reforms are also followed by an increase in the share of activity in international equity markets, with potential negative spillover effects on domestic markets.Markets and Market Access,Economic Theory&Research,Access to Markets,Privatization,Corporate Law

Submersiones casi-hermiticas en W4-variedades

In thís article we prove some properties relatíves to inmersions, and almost-Hermitian submersions on W4-manifold

Drivers and Obstacles to Banking SMEs: The Role of Competition and the Institutional Framework

Small and medium enterprises (SMEs) are important for employment and economic activity; however, they are perceived to lack adequate financing, which hampers their growth. As a consequence, governments have implemented a number of programs to foster SME lending and attention has focused on improving the institutional environment, such that the financial system is more willing to lend to SMEs. In this paper, we directly ask banks (the main providers of SME external finance) what factors they perceive as drivers and obstacles to financing SMEs. We also study to what degree competition and the institutional framework play a role in banks’ decisions. To do so, we use a unique survey of banks in Argentina and Chile, two neighboring emerging countries with significant differences in how their institutional environments are viewed, and thus expected to shape banks’ willingness to deal with SMEs. The paper shows that, despite alleged differences in the countries’ environments regarding rules, regulations, institutions, and ease of doing business, SMEs have become a strategic segment for most banks in both countries. In particular, banks have begun to target SMEs due to the significant competition in the corporate and retail sectors. They perceive the SME market as highly profitable, large, and with good prospects. Moreover, banks are developing coping mechanisms to overcome the particular institutional obstacles present in each country and to compete for SMEs. Banks’ interest in SMEs is not based on government programs, yet policy action might help reduce the cost of providing financing, especially long-term lending.small and medium enterprises, bank finance, financial constraints, banking market structure, institutional factors, regulation, competition