85,736 research outputs found
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Optimal non-linear monetary policy rules
We propose a simply yet flexible framework for the analysis of optimal monetary policy
rules that produces the type of non-linear responses derived in the literature as
special cases. Perhaps more importantly, our framework suggests a richer set of nonlinear
responses than have been considered yet and thus may prompt further work in
this area
The Perverse Response of Interest Rates
We argue that an increase in aggregate demand can lead to a reduction in the interest rate.
This apparently perverse optimal response of interest rates can occur when the Phillips curve
is non-linear. In that case, an increase in aggregate demand tends to increase inflation and
output but also to change the weight on inflation in the optimal monetary policy rule. Although
the first two effects tend to increase interest rates, the latter effect can imply lower interest
rates. If this effect dominates, interest rates can fall
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Targets, Zones and Asymmetries: A Flexible Nonlinear model of Recent UK Monetary Policy
We estimate a flexible model of the behaviour of UK monetary policymakers in the era of
inflation targeting based on a new representation of policymaker’s preferences. This enables
us to address a range of issues that are beyond the scope of the existing literature. We find a
complex relationship between interest rates and inflation: interest rates are passive when
inflation is close to the target but there is an increasingly vigorous response as inflation
deviates further from the target. We also find that the response to the output gap is linear and
find no evidence of a nonlinear Phillips curve
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Non-linear and non-symmetric exchange-rate adjustment: new evidence from medium and high inflation countries
This paper analyses a model of non-linear exchange rate adjustment that extends the
literature by allowing asymmetric responses to over- and under-valuations. Applying
the model to Greece and Turkey, we find that adjustment is asymmetric and that
exchange rates depend on the sign as well as the magnitude of deviations, being more
responsive to over-valuations than under-valuations. Our findings support and extend
the argument that non-linear models of exchange rate adjustment can help to overcome
anomalies in exchange rate behaviour. They also suggest that exchange rate adjustment
is non-linear in economies where fundamentals models work well
Classification of irreducible quasifinite modules over map Virasoro algebras
We give a complete classification of the irreducible quasifinite modules for
algebras of the form Vir \otimes A, where Vir is the Virasoro algebra and A is
a Noetherian commutative associative unital algebra over the complex numbers.
It is shown that all such modules are tensor products of generalized evaluation
modules. We also give an explicit sufficient condition for a Verma module of
Vir \otimes A to be reducible. In the case that A is an infinite-dimensional
integral domain, this condition is also necessary.Comment: 25 pages. v2: Minor changes, published versio
Adaptive networks of trading agents
Multi-agent models have been used in many contexts to study generic
collective behavior. Similarly, complex networks have become very popular
because of the diversity of growth rules giving rise to scale-free behavior.
Here we study adaptive networks where the agents trade ``wealth'' when they are
linked together while links can appear and disappear according to the wealth of
the corresponding agents; thus the agents influence the network dynamics and
vice-versa. Our framework generalizes a multi-agent model of Bouchand and
Mezard, and leads to a steady state with fluctuating connectivities. The system
spontaneously self-organizes into a critical state where the wealth
distribution has a fat tail and the network is scale-free; in addition, network
heterogeneities lead to enhanced wealth condensation.Comment: 7 figure
Multivectorial strategy to interpret a resistive behaviour of loads in smart buildings
In Smart buildings, electric loads are affected by an
important distortion in the current and voltage waveforms,
caused by the increasing proliferation of non linear electronic
devices. This paper presents an approach on non sinusoidal
power theory based on Geometric Algebra that clearly improves
traditional methods in the optimization of apparent power and
power factor compensation. An example is included that
demonstrates the superiority of this approach compared with
traditional methods.Universidad de Málaga. Campus de Excelencia Internacional AndalucĂa Tech
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