The behavior of real exchange rates: the case of Japan

The study examines the convergence rate of mean reversion by contrasting the estimated half-life of real exchange rate (RER). We employ an extensive monthly consumer price index (CPI)-based product price’s panel for Japan (the U.S. as the num´eraire). We find that the disaggregated RERs are persistent due to the cross-sectional dependence problems. By controlling common correlated effects, the estimated half-life for all goods may fall to as low as 2.54 years, below the consensus view of 3 to 5 years summarized by Rogoff (1996). After correcting the small-sample bias, the estimated half-life of deviations from purchasing power parity (PPP) increase by 1.03 year. Our findings also support that the half-life of mean reversion of RER is about 3.55 years for traded goods, about 0.11 year lower than non-traded goods. We also show that traded goods and non-traded goods perform distinct distributions of persistence

Design of Immersed Tunnel and How We Research Submerged Floating Tunnel

This chapter begins with the discussion of the immersed tunnel design, concerning its reason of existence, historical review, general design, transverse and longitudinal design, the interaction, and the critical issues. The discussion is founded on the author’s 10 year experience in building the Hong Kong-Zhuhai-Macao Bridge (HZMB) immersed tunnel as a site design engineer. The experience of building immersed tunnel is transferable to build the submerged floating tunnel, which has never been built. In author’s opinion, the submerged floating tunnel (SFT) technique will be the next generation of IMT technique. In the second part of this chapter, the author proceeds to discuss the strategy of SFT research and the latest development in CCCC SFT Technical Joint Research Team

Little String Amplitudes (and the Unreasonable Effectiveness of 6D SYM)

We study tree level scattering amplitudes of four massless states in the double scaled little string theory, and compare them to perturbative loop amplitudes in six-dimensional super-Yang-Mills theory. The little string amplitudes are computed from correlators in the cigar coset CFT and in N=2 minimal models. The results are expressed in terms of integrals of conformal blocks and evaluated numerically in the alpha' expansion. We find striking agreements with up to 2-loop scattering amplitudes of massless gluons in 6D SU(k) SYM at a Z_k invariant point on the Coulomb branch. We comment on the issue of UV divergence at higher loop orders in the gauge theory and discuss the implication of our results.Comment: 58 pages, 5 figures, 3 tables, comments added, references adde

Topological Defect Lines and Renormalization Group Flows in Two Dimensions

We consider topological defect lines (TDLs) in two-dimensional conformal field theories. Generalizing and encompassing both global symmetries and Verlinde lines, TDLs together with their attached defect operators provide models of fusion categories without braiding. We study the crossing relations of TDLs, discuss their relation to the 't Hooft anomaly, and use them to constrain renormalization group flows to either conformal critical points or topological quantum field theories (TQFTs). We show that if certain non-invertible TDLs are preserved along a RG flow, then the vacuum cannot be a non-degenerate gapped state. For various massive flows, we determine the infrared TQFTs completely from the consideration of TDLs together with modular invariance.Comment: 101 pages, 63 figures, 2 tables; v3: minor changes, added footnotes and references, published versio