Optimal Monetary Policy Rules Under Inflation Range Targeting

We calculate and compare optimal monetary policy (MP) rules for a simple economy under alternative central bank objective (loss) functions. We compare both soft- and hard-edges range (zone) targeting as well as asymmetric loss-functions to a quadratic loss case. The latter represents the standard loss-function for point inflation targeting. The results show that MP aggressiveness under range targeting critically depends on how hard are the edges of this range. If a range is thought of as a thick point objective, MP is always active (there are no inaction zones), although it is less aggressive against inflation and output shocks if range edges are sufficiently soft (vis-à-vis a point target). Harder edges makes MP more aggressive even when the economy is close to the central part of the range. Finally, an asymmetric loss-function for inflation that penalizes positive deviations relatively more generates a bias against output.

Optimal Monetary Policy Rules when the Current Account Matters

This paper explores the implications for optimal monetary policy rules of including a target for the current account (CA) among central bank (CB) objectives. Using a simple but realistic macroeconomic model of the Chilean economy and standard dynamic programming with forward looking variables, the paper finds optimal rules under alternative specifications of a CB quadratic loss-function. The results show that optimal policy reactions change substantially when there is an objective for the CA (besides inflation). Furthermore, once the CA enters the CB objective function, the relative importance of output vis-à-vis inflation variability is less crucial in determining optimal policy rules. Using a simple 2-equation model, the paper then investigates the implications for monetary policy of having an asymmetric objective with respect to the CA. Specifically, it considers the case in which negative deviations from target are considered to be relatively more costly. The results indicate that, in this non-quadratic set-up, monetary policy is clearly more aggressive against positive inflation shocks than in the symmetric case.

Constant curvature black holes in Einstein AdS gravity: conserved quantities

We study physical properties of constant curvature black holes (CCBHs) in Einstein anti-de Sitter (AdS) gravity. These objects, which are locally AdS throughout the space, are constructed from identifications of global AdS spacetime, in a similar fashion as Banados-Teitelboim-Zanelli (BTZ) black hole in three dimensions. We find that, in dimensions equal or greater than four, CCBHs have zero mass and angular momentum. Only in odd dimensions we are able to associate a nonvanishing conserved quantity to these solutions, which corresponds to the vacuum (Casimir) energy of the spacetime.Comment: 20 pages, no figure

The Effects of Privatization on Firms and on Social Welfare: The Chilean Case

Chile led the Latin American pack in launching its far-reaching privatization program, but the question of whether the process has made firms more profitable remains. Also unclear is whether society as a whole is better off because of privatization. This paper looks at the performance of several industries to gauge the effects of privatization on Chilean firms and social welfare. The authors’ research, which is both broad and deep, yields some surprising findings. For example, contrary to commonly-held perceptions of bloated state-run bureaucracies, the authors find that the employment ranks of regulated entities actually swelled after their ownership switched to private hands. The paper evaluates a wide range of aspects of the privatization process, from highway tolls to private pension fund returns to school vouchers, and concludes with some concrete recommendations for future improvements.

Non-modal analysis of spectral element methods: Towards accurate and robust large-eddy simulations

We introduce a \textit{non-modal} analysis technique that characterizes the diffusion properties of spectral element methods for linear convection-diffusion systems. While strictly speaking only valid for linear problems, the analysis is devised so that it can give critical insights on two questions: (i) Why do spectral element methods suffer from stability issues in under-resolved computations of nonlinear problems? And, (ii) why do they successfully predict under-resolved turbulent flows even without a subgrid-scale model? The answer to these two questions can in turn provide crucial guidelines to construct more robust and accurate schemes for complex under-resolved flows, commonly found in industrial applications. For illustration purposes, this analysis technique is applied to the hybridized discontinuous Galerkin methods as representatives of spectral element methods. The effect of the polynomial order, the upwinding parameter and the P\'eclet number on the so-called \textit{short-term diffusion} of the scheme are investigated. From a purely non-modal analysis point of view, polynomial orders between $2$ and $4$ with standard upwinding are well suited for under-resolved turbulence simulations. For lower polynomial orders, diffusion is introduced in scales that are much larger than the grid resolution. For higher polynomial orders, as well as for strong under/over-upwinding, robustness issues can be expected. The non-modal analysis results are then tested against under-resolved turbulence simulations of the Burgers, Euler and Navier-Stokes equations. While devised in the linear setting, our non-modal analysis succeeds to predict the behavior of the scheme in the nonlinear problems considered

New Keynesian Models For Chile During the Inflation Targeting Regime: A Structural Approach

Knowing the frictions that are present in the economy is a key step towards the efficient design of policy actions. In particular, price and wage rigidities determine the degree of tradeoff between output and inflation stabilization that central banks face. In this context, the main purpose of this paper is to determine the importance of nominal and real rigidities in the Chilean economy. In doing so, we derive and estimate a dynamic stochastic general equilibrium (DSGE) model for the Chilean economy. We find that several rigidities are present in the Chilean economy and, in particular, that. the degree of wage stickiness is higher than that of prices. Furthermore, imperfect passthrough from exchange rate to import prices is an important feature of the Chilean economy. The subsample analysis suggests that some rigidities and policy reactions may have changed. Those changes maybe related to more a more credible monetary policy.

Moviments de dispersió en els primats. Variabilitat en els seus patrons i causes

Els moviments de dispersió en els animals representen decisions crucials per als individus, ja que afecten la seua supervivència i èxit reproductiu, a més de ser un component important de la dinàmica poblacional. En aquest article es descriu la variabilitat en els patrons de dispersió en els primats i algunes de les causes, tant últimes com proximals, a les quals respon