Exchange Rates and Portfolio Balance

An open economy portfolio balance model, describing allocation among money, a domestic bond, and a traded foreign currency bond is developed for a world of many countries. A special role is attributed to the dollar, namely that all internationally traded bonds are denominated in that currency. It is shown that in the short run with real variables exogenous and expectations static, stability requires that all countries except the U.S. be net creditors in dollar-denominated bonds. What data are available on inter-country claims suggest that some countries may well be net debtors abroad in foreign currency. In particular, if one excludes direct investment claims, private claims on the rest of the world by Japan and Canada have been negative over the period of floating rates since 1973. However, some preliminary reduced-form regression equations for the dollar exchange rates of these two countries do not support the implications of the portfolio balance model in the debtor case. On the other hand, an equation for a composite of Western European currencies (by our calculations, this group of countries is a net creditor) gives more promising results.

Reactivation of Limestone-Derived Sorbents using Hydration: Preliminary Results From a Fluidised Bed

A simple method of CO~2~ capture is by using the calcium looping cycle. The calcium looping cycle uses CaCO~3~ as a CO~2~ carrier, via the reversible reaction CaO(s) + CO~2~(g) = CaCO~3~(s), to extract CO2 from the exhaust stream and provide a pure stream of CO~2~ suitable for sequestration. 
A problem associated with the technology is that the capacity of the sorbent to absorb CO~2~ reduces significantly with the number of cycles of carbonation and calcination. The energy penalty of the cycle is considerably increased by cycling unreacted sorbent: hydration of unreactive sorbent has emerged as a promising strategy of reducing this penalty by regenerating the reactivity of exhausted sorbent.
A small atmospheric pressure fluidised bed reactor has been built and tested, that allows repeated cycling between two temperatures up to 1000 °C. 
Work presented here focuses on the effects of variation of the calcination temperature before hydration. Hydration has been found to more than double the reactivity of a spent sorbent cycled under the mildest conditions studied (calcination temperature of 840 °C). However, as calcination temperature is increased the observed reactivation decreases until little reactivation is observed for the sorbent cycled at 950 °C. The primary reason for this appears to be a substantial increase in friability of particles, with reactivity normalised for mass losses appearing similar independent of cycling temperature

The divergence characteristics of constrained-sheath optics systems for use with 5-eV atomic oxygen sources

The potential usefulness of the constrained sheath optics concept as a means of controlling the divergence of low energy, high current density ion beams is examined numerically and experimentally. Numerical results demonstrate that some control of the divergence of typical ion beamlets can be achieved at perveance levels of interest by contouring the surface of the constrained sheath properly. Experimental results demonstrate that a sheath can be constrained by a wire mesh attached to the screen plate of the ion optics system. The numerically predicted beamlet divergence characteristics are shown to depart from those measured experimentally, and additional numerical analysis is used to demonstrate that this departure is probably due to distortions of the sheath caused by the fact that it attempts to conform to the individual wires that make up the sheath constraining mesh. The concept is considered potentially useful in controlling the divergence of ion beamlets in applications where low divergence, low energy, high current density beamlets are being sought, but more work is required to demonstrate this for net beam ion energies as low as 5 eV

Synaptic plasticity in medial vestibular nucleus neurons: comparison with computational requirements of VOR adaptation

Background: Vestibulo-ocular reflex (VOR) gain adaptation, a longstanding experimental model of cerebellar learning, utilizes sites of plasticity in both cerebellar cortex and brainstem. However, the mechanisms by which the activity of cortical Purkinje cells may guide synaptic plasticity in brainstem vestibular neurons are unclear. Theoretical analyses indicate that vestibular plasticity should depend upon the correlation between Purkinje cell and vestibular afferent inputs, so that, in gain-down learning for example, increased cortical activity should induce long-term depression (LTD) at vestibular synapses. Methodology/Principal Findings: Here we expressed this correlational learning rule in its simplest form, as an anti-Hebbian, heterosynaptic spike-timing dependent plasticity interaction between excitatory (vestibular) and inhibitory (floccular) inputs converging on medial vestibular nucleus (MVN) neurons (input-spike-timing dependent plasticity, iSTDP). To test this rule, we stimulated vestibular afferents to evoke EPSCs in rat MVN neurons in vitro. Control EPSC recordings were followed by an induction protocol where membrane hyperpolarizing pulses, mimicking IPSPs evoked by flocculus inputs, were paired with single vestibular nerve stimuli. A robust LTD developed at vestibular synapses when the afferent EPSPs coincided with membrane hyperpolarisation, while EPSPs occurring before or after the simulated IPSPs induced no lasting change. Furthermore, the iSTDP rule also successfully predicted the effects of a complex protocol using EPSP trains designed to mimic classical conditioning. Conclusions: These results, in strong support of theoretical predictions, suggest that the cerebellum alters the strength of vestibular synapses on MVN neurons through hetero-synaptic, anti-Hebbian iSTDP. Since the iSTDP rule does not depend on post-synaptic firing, it suggests a possible mechanism for VOR adaptation without compromising gaze-holding and VOR performance in vivo

Modified confidence intervals for the Mahalanobis distance

Reiser (2001) proposes a method of forming confidence interval for a Mahalanobis distance that yields intervals which have exactly the nominal coverage, but sometimes the interval is View the MathML source (0,0). We consider the case where Mahalanobis distance quantifies the difference between an individual and a population mean, and suggest a modification that avoids implausible intervals

Managing the Regulatory State: The Experience of the Bush Administration

This Article traces the history of Presidential management of the regulatory state up to the administration of President George W. Bush. It focuses on the latter\u27s implementation of smarter regulation, an approach to regulation based on unfunded mandates on the private sector implemented through the Office of Management and Budget, an organization within the Executive Office of the President. It finds cost-benefit analysis an essential, yet often neglected, tool for implementing efficient and effective regulations. It concludes the policies promoted under President Bush\u27s OMB have effectively cut costs by streamlining the rule-making process and discouraging adopting new federal rules, but cautions there is still a sea of overlapping regulations and conflict over turf among agencies causing the administrative state to steadily rise in cost

Plasmid copy number underlies adaptive mutability in bacteria.

The origin of mutations under selection has been intensively studied using the Cairns-Foster system, in which cells of an Escherichia coli lac mutant are plated on lactose and give rise to 100 Lac+ revertants over several days. These revertants have been attributed variously to stress-induced mutagenesis of nongrowing cells or to selective improvement of preexisting weakly Lac+ cells with no mutagenesis. Most revertant colonies (90%) contain stably Lac+ cells, while others (10%) contain cells with an unstable amplification of the leaky mutant lac allele. Evidence is presented that both stable and unstable Lac+ revertant colonies are initiated by preexisting cells with multiple copies of the F'lac plasmid, which carries the mutant lac allele. The tetracycline analog anhydrotetracycline (AnTc) inhibits growth of cells with multiple copies of the tetA gene. Populations with tetA on their F'lac plasmid include rare cells with an elevated plasmid copy number and multiple copies of both the tetA and lac genes. Pregrowth of such populations with AnTc reduces the number of cells with multiple F'lac copies and consequently the number of Lac+ colonies appearing under selection. Revertant yield is restored rapidly by a few generations of growth without AnTc. We suggest that preexisting cells with multiple F'lac copies divide very little under selection but have enough energy to replicate their F'lac plasmids repeatedly until reversion initiates a stable Lac+ colony. Preexisting cells whose high-copy plasmid includes an internal lac duplication grow under selection and produce an unstable Lac+ colony. In this model, all revertant colonies are initiated by preexisting cells and cannot be stress induced