Nominal versus Real Convergence with Respect to EMU Accession - EMU Entry Scenarios for the New Member States

This paper explores the conflict of real and monetary convergence during the EMU run-up of the Central and Eastern European new EU member states. Based on a Balassa-Samuelson model of productivity driven inflation, it finds a high probability of higher inflation in the new member states. It compares the policy options which might make the compliance possible, i.e., fiscal tightening and nominal appreciation within the ERM2 band. Nominal appreciation within ERM2 seems the better option to achieve the compliance with the Maastricht criteria as no discretionary government intervention is necessary and losses in terms of real growth are less. Having once opted for nominal appreciation within ERM2 by fixing the ERM2 entry rate as the ERM2 central rate (Irish model), a high degree of flexibility is provided in coping with erratic short-term capital inflows. Setting the ERM2 entry rate above the ERM2 central rate (Greek model) implies a clear exchange rate path within ERM2 and thereby less exchange rate volatility. Despite the merits of nominal appreciation, countries committed to hard euro pegs or with high budget deficits might choose fiscal contraction as a solution, which will require a high degree of fiscal flexibility and thereby decisiveEMU, ERMII, Balassa-Samuelson Effect, Real Appreciation, Monetary Union, Central and Eastern Europe.

Exchange Rate Regimes and Macroeconomic Stability in Central and Eastern Europe

This paper explores the impact of the exchange rate regime on inflation and output in the Central and Eastern European (CEE) EU candidate countries. The panel estimations for the period between 1994 and 2002 show that de facto measures of exchange rate stability have a better explanatory power than the de jure measures in the inflation and growth equations. For the whole observation period the estimations reveal a significant impact of exchange rate stability on low inflation as well as a highly significant positive impact of exchange stability on real growth. When sub-dividing the period into a “high-inflation” period (1994-1997) and a “low-inflation period” (1998-2002) and when removing outliers from the sample, the evidence in favour of a positive association between exchange rate stability and inflation gets weaker. The association of exchange rate stability with higher real growth remains quite robust. Thus our findings can be interpreted to mean that membership of the CEE countries in the European Monetary Union would have a positive impact on these countries’ growth rates.exchange rate regimes, inflation, growth, Central and Eastern Europe, macroeconomic stability

Nominal versus Real Convergence with Respect to EMU Accession.How to Cope with the Balassa-Samuelson Dilemma

This paper explores the conflict of real and monetary convergence during the EMU run-up of the future Central and Eastern European (CEE) EU member states. Based on a Balassa-Samuelson model of productivity driven inflation, it compares the policy options which might make the compliance possible, i.e., fiscal tightening and nominal appreciation within the ERM2 band. Nominal appreciation within ERM2 seems the better option to achieve the compliance with the Maastricht criteria as no discretionary government intervention is necessary and losses in terms of real growth are less. Having once opted for nominal appreciation within ERM2 by fixing the ERM2 entry rate as the ERM2 central rate (Irish model), a high degree of flexibility is provided in coping with erratic short-term capital inflows. Setting the ERM2 entry rate below or above the ERM2 central rate (Greek model) implies a clear exchange rate path within ERM2 and thereby less exchange rate volatility. But the Greek model also requires accurate information about the future exchange rate path and strict fulfilment of the Maastricht criteria within the projected time frame. Despite the merits of nominal appreciation, countries committed to hard euro pegs might choose fiscal contraction as the second best solution.Euro; EMU; EU-East-Central Europe; enlargement

Exchange Rate Regimes and Macroeconomic Stability in Central and Eastern Europe

The IMF classifications of the Central and Eastern European exchange rate arrangements are heterogeneous. While one group of countries reports tight pegs to the euro, a second group seems to have moved toward (more) exchange rate flexibility. Based on the recent discussion about the accuracy of IMF exchange rate arrangement classifications, low- and high-frequency exchange rate stability in Central and Eastern Europe is explored here. De facto exchange rate stabilization is found to be much more prevalent in Central and Eastern Europe than suggested by de jure exchange rate classifications. Most of the CEE countries peg their currencies to the euro, thereby contributing to a growing euro zone. Nevertheless, as exchange rate stabilization against the euro is pursued with different degrees and with different long-term drifts, intra-regional exchange rates are still far from being unified.Exchange Rate Regimes, Inflation, Growth, Central and Eastern Europe, Macroeconomic Stability

Active seat suspension enhancing driver comfort

One or two mass models (Fig.1) have been suggested to represent vehicle seat-occupant vibration behaviour, which contributes significantly to vehicle occupant comfort. Moreover it has been experimentally determined that vehicle seat vibration comfort mainly depends on vibration in a frequency range from f = 0-30 Hz. Subjective vibration comfort perception coincides with the two-mass models and finds resonance frequencies at around 4.5 Hz and 14-15 Hz.To avoid adverse occupant effects in autonomous driving, seat vibration must be controlled (Fig.2).This can be achieved through four actors mounted between the seat and seat rails, effectively isolating the seat from vehicle vibration. The isolation performance for such an active vibration damper is shown in Fig.3 for a constant damping factor and three stiffnesses. Moreover, isolation performance depends on the operating displacement capacity (Fig.4).Small actor displacement drives high stiffness; vice–versa the higher the stiffness, the smaller the actor displacement. The higher the stiffness, the higher is also the required actor power, and the stiffer the system, the worse the vibration isolation. The larger the actor displacement, the smaller the resonance frequency, which is desirable. The higher the damping, the higher is also the required actor power, and the smaller the resonance amplitude. On the other hand, the smaller the damping and the higher the actor displacement, the better the vibration isolation above 4 Hz. Vibration isolation below 1 Hz is not possible. Hence to optimize the system large actor displacement, small stiffness and medium to high damping must be achieved (Fig.5)

Defining standards for modelling the biomechanics of the foot and ankle: a systematic review

The complex interaction of the bones of the foot has been explored in detail in recent years, which has led to the acknowledgement in the biomechanics community that the foot can no longer be considered as a single rigid segment. With the advance of motion analysis technology it has become possible to quantify the biomechanics of simplified units or segments that make up the foot. Advances in technology coupled with reducing hardware prices has resulted in the uptake of more advanced tools available for clinical gait analysis. The increased use of these techniques in clinical practice requires defined standards for modelling and reporting of foot and ankle kinematics. This systematic review aims to provide a critical appraisal of commonly used foot and ankle marker sets designed to assess kinematics and thus provide a theoretical background for the development of modelling standards

Modelling of multilayered foams for universal seat design

Patients with chronic disability, or in a transient disability state post-surgery may require a mobility device for their safety and convenience. Patients with a low to mid-level severe mobility impairment are mostly comfortable to leave hospital in a factory wheelchair without further modifications, however in particular chronically disabled wheelchair bound patients require wheelchair cushion modifications specifically designed for their condition. Such personalized cushions minimise pain from sitting, avoid pressure ulcers, and correct patient posture to prevent musculoskeletal and spinal damage. To identify physical properties of a complex seat cushion design with multiple layers, for the simulation of optimum seat cushions for mobility impaired users, long-term testing was undertaken with multiples of different layer combination samples. Physical indentation results for reorganised cushions were obtained and further evaluated. We present the first study where a complex, multi-layered foam cushion structure is cycle-tested using a custom-specific human-shape indenter, derived from 3-D body scanning of a 95th percentile stature subject. The test provides physical material properties of the complex foam structure under realistic human shape indentation for the selected anthropometry. The test results feed and validate a realistic material model, and confirm durability and stability over time of the complex foam