Beyond Competitive Devaluations: The Monetary Dimensions of Comparative Advantage

Motivated by the long-standing debate on the pros and cons of competitive devaluation, we propose a new perspective on how monetary and exchange rate policies can contribute to a country's international competitiveness. We refocus the analysis on the implications of monetary stabilization for a country's comparative advantage. We develop a two-country New-Keynesian model allowing for two tradable sectors in each country: while one sector is perfectly competitive,firms in the other sector produce differentiated goods under monopolistic competition subject to sunk entry costs and nominal rigidities, hence their performance is more sensitive to macroeconomic uncertainty. We show that, by stabilizing markups, monetary policy can foster the competitiveness of these firms, encouraging investment and entry in the differentiated goods sector, and ultimately affecting the composition of domestic output and exports. Panel regressions based on worldwide exports to the U.S. by sector lend empirical support to the theory.Constraining monetary policy with an exchange rate peg lowers a country's share of differentiated goods in exports between 4 and 12 percent

The Macroeconomic Stabilization Of Tariff Shocks: What Is The Optimal Monetary Response?

In the wake of Brexit and Trump trade war, central banks face the need to reconsider the role of monetary policy in managing the inflationary-recessionary effects of hikes in tariffs. Using a New Keynesian model enriched with elements from the trade literature, including global value chains, firm dynamics, and comparative advantage, we show that the optimal monetary response is expansionary. It supports activity and producer prices at the expense of aggravating short-run headline inflation---contrary to the prescription of the standard Taylor rule. This holds all the more when the home currency is dominant in pricing of international trade

A Direct Measurement of the Total Gas Column Density in Orion KL

The large number of high-J lines of C^(18)O available via the Herschel Space Observatory provide an unprecedented ability to model the total CO column density in hot cores. Using the emission from all the observed lines (up to J = 15-14), we sum the column densities in each individual level to obtain the total column after correcting for the population in the unobserved states. With additional knowledge of source size, V_(LSR), and line width, and both local thermodynamic equilibrium (LTE) and non-LTE modeling, we have determined the total C^(18)O column densities in the Extended Ridge, Outflow/Plateau, Compact Ridge, and Hot Core components of Orion KL to be 1.4 × 10^(16) cm^(–2), 3.5 × 10^(16) cm^(–2), 2.2 × 10^(16) cm^(–2), and 6.2 × 10^(16) cm^(–2), respectively. We also find that the C^(18)O/C^(17)O abundance ratio varies from 1.7 in the Outflow/Plateau, 2.3 in the Extended Ridge, 3.0 in the Hot Core, and to 4.1 in the Compact Ridge. This is in agreement with models in which regions with higher ultraviolet radiation fields selectively dissociate C^(17)O, although care must be taken when interpreting these numbers due to the size of the uncertainties in the C^(18)O/C^(17)O abundance ratio

Organic Carbon, Inorganic Carbon, and Related Variables in Offshore Oil Production Areas of the Northern Gulf of Mexico

Paper by Charles R. Brent, Howard P. Williams, W. A. Bergin, John L. Tyvoll, and Tommy E. Myer

Velocity-resolved [CII] emission and [CII]/FIR Mapping along Orion with Herschel

We present the first 7.5'x11.5' velocity-resolved map of the [CII]158um line toward the Orion molecular cloud-1 (OMC-1) taken with the Herschel/HIFI instrument. In combination with far-infrared (FIR) photometric images and velocity-resolved maps of the H41alpha hydrogen recombination and CO J=2-1 lines, this data set provides an unprecedented view of the intricate small-scale kinematics of the ionized/PDR/molecular gas interfaces and of the radiative feedback from massive stars. The main contribution to the [CII] luminosity (~85%) is from the extended, FUV-illuminated face of the cloud G_0>500, n_H>5x10^3 cm^-3) and from dense PDRs (G_0~10^4, n_H~10^5 cm^-3) at the interface between OMC-1 and the HII region surrounding the Trapezium cluster. Around 15% of the [CII] emission arises from a different gas component without CO counterpart. The [CII] excitation, PDR gas turbulence, line opacity (from [13CII]) and role of the geometry of the illuminating stars with respect to the cloud are investigated. We construct maps of the [CII]/FIR and FIR/M_Gas ratios and show that [CII]/FIR decreases from the extended cloud component (10^-2-10^-3) to the more opaque star-forming cores (10^-3-10^-4). The lowest values are reminiscent of the "[CII] deficit" seen in local ultra-luminous IR galaxies hosting vigorous star formation. Spatial correlation analysis shows that the decreasing [CII]/FIR ratio correlates better with the column density of dust through the molecular cloud than with FIR/M_Gas. We conclude that the [CII] emitting column relative to the total dust column along each line of sight is responsible for the observed [CII]/FIR variations through the cloud.Comment: 21 pages, 17 figures. Accepted for publication in the Astrophysical Journal (2015 August 12). Figures 2, 6 and 7 are bitmapped to lower resolution. This is version 2 after minor editorial changes. Notes added after proofs include

Fully Sampled Maps of Ices and Silicates in Front of Cepheus A East with Spitzer

We report the first fully sampled maps of the distribution of interstellar CO2 ices, H2O ices and total hydrogen nuclei, as inferred from the 9.7 micron silicate feature, toward the star-forming region Cepheus A East with the IRS instrument onboard the Spitzer Space Telescope. We find that the column density distributions for these solid state features all peak at, and are distributed around, the location of HW2, the protostar believed to power one of the outflows observed in this star-forming region. A correlation between the column density distributions of CO2 and water ice with that of total hydrogen indicates that the solid state features we mapped mostly arise from the same molecular clumps along the probed sight lines. We therefore derive average CO2 ice and water ice abundances with respect to the total hydrogen column density of X(CO2)_ice~1.9x10^-5 and X(H2O)_ice~7.5x10^-5. Within errors, the abundances for both ices are relatively constant over the mapped region exhibiting both ice absorptions. The fraction of CO2 ice with respect to H2O ice is also relatively constant at a value of 22% over that mapped region. A clear triple-peaked structure is seen in the CO2 ice profiles. Fits to those profiles using current laboratory ice analogs suggest the presence of both a low-temperature polar ice mixture and a high-temperature methanol-rich ice mixture along the probed sightlines. Our results further indicate that thermal processing of these ices occurred throughout the sampled region.Comment: 26 pages, 8 figures, accepted for publication in Ap

The Distribution of Water Emission in M17SW

We present a 17-point map of the M17SW cloud core in the 1_{10}-1_{01} transition of ortho-water at 557 GHz obtained with the Submillimeter Wave Astronomy Satellite. Water emission was detected in 11 of the 17 observed positions. The line widths of the water emission vary between 4 and 9 km s^{-1}, and are similar to other emission lines that arise in the M17SW core. A direct comparison is made between the spatial extent of the water emission and the ^{13}CO J = 5\to4 emission; the good agreement suggests that the water emission arises in the same warm, dense gas as the ^{13}CO emission. A spectrum of the H_2^{18}O line was also obtained at the center position of the cloud core, but no emission was detected. We estimate that the average abundance of ortho-water relative to H_2 within the M17 dense core is approximately 1x10^{-9}, 30 times smaller than the average for the Orion core. Toward the H II region/molecular cloud interface in M17SW the ortho-water abundance may be about 5 times larger than in the dense core.Comment: 4 pages, 3 Postscript figures, uses aastex.cls, emulateapj5.sty (included), and apjfonts.sty (included

A New Probe of the Planet-Forming Region in T Tauri Disks

We present new observations of the FUV (1100-2200 Angstrom) radiation field and the near- to mid-IR (3--13.5 micron) spectral energy distribution (SED) of a sample of T Tauri stars selected on the basis of bright molecular disks (GM Aur, DM Tau, LkCa15). In each source we find evidence for Ly alpha induced H2 fluorescence and an additional source of FUV continuum emission below 1700 Angstroms. Comparison of the FUV spectra to a model of H2 excitation suggests that the strong continuum emission is due to electron impact excitation of H2. The ultimate source of this excitation is likely X-ray irradiation which creates hot photo-electrons mixed in the molecular layer. Analysis of the SED of each object finds the presence of inner disk gaps with sizes of a few AU in each of these young (~1 Myr) stellar systems. We propose that the presence of strong H2 continuum emission and inner disk clearing are related by the increased penetration power of high energy photons in gas rich regions with low grain opacity.Comment: 5 pages, 3 figures, accepted by ApJ Letter