Productivity differentials and external balance in ERM II

Differences in growth, productivity and inflation levels are going to be a prominent feature of the future of EMU, as the convergence process is still on-going in the new Member States. This convergence process can be described by the Balassa-Samuelson proposition, which states that faster growth in the traded goods sector than in the non-traded goods sector results in a rise in the price of non-traded goods and an appreciation of the trend real exchange rate. In this study, the aim is to construct a small open economy model that enables examination of the effects of Balassa-Samuelson-type growth in an intertemporal fixed exchange rate framework with a focus on the external balance. To address the well-known problems with small open economy models, an endogenous discount rate is used. The results imply that faster productivity growth in the traded than in the non-traded goods sector may induce external imbalances, leading to increased vulnerability of the economy. However, trade account deficits would appear to be a temporary phenomenon, as this line of development can be reversed by the natural shift in the composition of consumption towards non-traded goods that is characteristic of catch-up economies. In the meantime, fiscal policy plays a key role.small open economy; Balassa-Samuelson effect; ERM II; external balance

Productivity differentials and external balance in ERM II

Differences in growth, productivity and inflation levels are going to be a prominent feature of the future of EMU, as the convergence process is still ongoing in the new Member States. This convergence process can be described by the Balassa-Samuelson proposition, which states that faster growth in the traded goods sector than in the non-traded goods sector results in a rise in the price of non-traded goods and an appreciation of the trend real exchange rate. In this study, the aim is to construct a small open economy model that enables examination of the effects of Balassa-Samuelson-type growth in an intertemporal fixed exchange rate framework with a focus on the external balance. To address the well- known problems with small open economy models, an endogenous discount rate is used. The results imply that faster productivity growth in the traded than in the non-traded goods sector may induce external imbalances, leading to increased vulnerability of the economy. However, trade account deficits would appear to be a temporary phenomenon, as this line of development can be reversed by the natural shift in the composition of consumption towards nontraded goods that is characteristic of catch-up economies. In the meantime, fiscal policy plays a key role.small open economy, Balassa-Samuelson effect, ERM II, external balance

Vuoden 2023 alustava talousarviosuunnitelma

Vuoden 2023 alustava talousarviosuunnitelmaEuroopan parlamentin ja neuvoston asetuksen (EU) N:o 473/2013 (asetus alustavien talousarviosuunnitelmien seurantaa ja arviointia sekä euroalueen jäsenvaltioiden liiallisen alijäämän tilanteen korjaamisen varmistamista koskevista yhteisistä säännöksistä) mukaisesti euroalueen jäsenvaltiot toimittavat 15. lokakuuta mennessä tulevaa vuotta koskevat alustavat talousarviosuunnitelmansa (Draft Budgetary Plan, DBP) komissiolle. Alustavat talousarviosuunnitelmat kuuluvat syksyisin toteutettavaan koordinoituun valvontamenettelyyn. Alustava talousarviosuunnitelma pitää sisällään tiedot makrotalouden ennusteista ja oletuksista, julkisen talouden tavoitteista, tulo- ja menoennusteista politiikan pysyessä muuttumattomana, tulo- ja menotavoitteista, talousarvioesitykseen sisältyvistä päätösperäisistä toimenpiteistä, unionin kasvu- ja työllisyysstrategian tavoitteista ja maakohtaisista suosituksista ja viimeisimmän vakausohjelman ja alustavan talousarviosuunnitelman vertailusta sekä menetelmiä koskevan liitteen. Vakaus- ja kasvusopimuksen yleinen poikkeuslauseke aktivoitiin maaliskuussa 2020 ja se on voimassa myös vuonna 2023. Vuoden 2023 alustavan talousarviosuunnitelman pohjana toimivat hallituksen eduskunnalle antama vuoden 2023 valtion talousarvioesitys, joka perustuu pitkälti kevään 2022 kehyspäätökseen, vuoden 2022 lisätalousarvioihin sekä kuntatalousohjelmaan vuodelle 2023

Ovatko EU:n finanssipoliittiset säännöt vihdoin uudistumassa?

Pandemian takia keskeytyneet keskustelut EU:n talouspoliittisen koordinaatiokehikon tulevaisuudesta käynnistyivät uudestaan viime syksynä, mistä alkoivat laajat teemakohtaiset komiteatason keskustelut EU:ssa. Pitkälti näiden keskustelujen pohjalta komissio julkaisi marraskuun alussa suunnitelmansa siitä, miten koordinaatiokehikkoa pitäisi sen mielestä uudistaa. Muutoksen painopiste on finanssipoliittisten sääntöjen uudistamisessa, jossa komission keskeinen ajatus on yhdistää asteittaisempi julkisen talouden sopeuttaminen tiukempaan valvontaan. Keskustelut komission suunnitelmista ovat jo käynnistyneet jäsenmaiden välillä, jotka pyrkivät löytämään yhteisymmärryksen muutoksen suunnasta alkuvuonna, minkä jälkeen olisi mahdollisten lainsäädäntömuutosehdotusten aika. Todennäköisesti uutta kehikkoa päästään kuitenkin soveltamaan täysimääräisesti vasta vuotta 2025 koskevassa finanssipoliittisessa suunnittelussa.</p

Knee kinematics and kinetics in former soccer players with a 16-year-old ACL injury – the effects of twelve weeks of knee-specific training

BACKGROUND: Training of neuromuscular control has become increasingly important and plays a major role in rehabilitation of subjects with an injury to the anterior cruciate ligament (ACL). Little is known, however, of the influence of this training on knee stiffness during loading. Increased knee stiffness occurs as a loading strategy of ACL-injured subjects and is associated with increased joint contact forces. Increased or altered joint loads contribute to the development of osteoarthritis. The aim of the study was to determine if knee stiffness, defined by changes in knee kinetics and kinematics of gait, step activity and cross-over hop could be reduced through a knee-specific 12-week training programme. METHODS: A 3-dimensional motion analysis system (VICON) and a force plate (AMTI) were used to calculate knee kinetics and kinematics before and after 12 weeks of knee-specific training in 12 males recruited from a cohort with ACL injury 16 years earlier. Twelve uninjured males matched for age, sex, BMI and activity level served as a reference group. Self-reported patient-relevant data were obtained by the KOOS questionnaire. RESULTS: There were no significant changes in knee stiffness during gait and step activity after training. For the cross-over hop, increased peak knee flexion during landing (from 44 to 48 degrees, p = 0.031) and increased internal knee extensor moment (1.28 to 1.55 Nm/kg, p = 0.017) were seen after training, indicating reduced knee stiffness. The KOOS sport and recreation score improved from 70 to 77 (p = 0.005) and was significantly correlated with the changes in knee flexion during landing for the cross-over hop (r = 0.6, p = 0.039). CONCLUSION: Knee-specific training improved lower extremity kinetics and kinematics, indicating reduced knee stiffness during demanding hop activity. Self-reported sport and recreational function correlated positively with the biomechanical changes supporting a clinical importance of the findings. Further studies are needed to confirm these results in women and in other ACL injured populations

Essays on euro area enlargement

This dissertation examines issues related to the adoption of the euro by the new Central and Eastern European EU Member States. The first essay studies the interaction between fiscal policy and the price level in different exchange rate regimes. The theoretical framework is based on the Fiscal Theory of the Price Level (FTPL). The results show that a credibly fixed exchange rate is inconsistent with fiscal irresponsibility, which implies that fiscal discipline is a prerequisite for successful participation in the exchange rate mechanism ERM II, while countries unable to commit to sound ?scal policies, probably should not commit to a fixed exchange rate either. Paradoxically, adoption of the common currency enables a country to conduct irresponsible policies, with the result that a rise in the debt level of one country raises the common price level of the monetary union. In the second essay, a small open economy model is constructed, which allows the examination of the effects of Balassa-Samuelson-type growth - i.e. faster productivity growth in the traded goods sector than in the non-traded goods sector - in an intertemporal fixed exchange rate framework with a focus on the external balance, which has gained less attention in earlier research. The numerical simulations imply that the Balassa-Samuelson e¤ect may increase the vulnerability of the economy. However, trade account deficits would appear to be a temporary phenomenon, as the deficits are decreased by the natural shift in the composition of consumption towards non-traded goods that is characteristic of catch-up. The focus of the third essay is the effects of the EU fiscal policy rules on the fiscal variables, namely deficit and debt, and the external balance in the new Member States participating in ERM II. The numerical simulations show that a fiscal rule based on debt may be better at providing stability into the economy, while a deficit rule implies a smoother response to a transitory increase in output. External imbalances appear to be a natural part of the convergence process, which cannot be eliminated through the use of fiscal rules alon

Stepping forward down from a step board with knee control on both the "supporting knee" and the "step down knee"

<p><b>Copyright information:</b></p><p>Taken from "Knee kinematics and kinetics in former soccer players with a 16-year-old ACL injury – the effects of twelve weeks of knee-specific training"</p><p>http://www.biomedcentral.com/1471-2474/8/35</p><p>BMC Musculoskeletal Disorders 2007;8():35-35.</p><p>Published online 17 Apr 2007</p><p>PMCID:PMC1865380.</p><p></p