Regional Debt in Monetary Unions: Is it Inflationary?

This paper studies the inflationary implications of interest bearing regional debt in a monetary union. Is this debt simply backed by future taxation with no inflationary consequences? Or will the circulation of region debt induce monetization by a central bank? We argue here that both outcomes can arise in equilibrium. In the model economy, there are multiple equilibria which reflect the perceptions of agents regarding the manner in which the debt obligations will be met. In one equilibrium, termed Ricardian, the future obligations are met with taxation by a regional government while in the other, termed Monetization, the central bank is induced to print money to finance the region's obligations. The multiplicity of equilibria reflects a commitment problem of the central bank. A key indicator of the selected equilibrium is the distribution of the holdings of the regional debt. We show that regional governments, anticipating central bank financing of their debt obligations, have an incentive to create excessively large deficits. We use the model to assess the impact of policy measures within a monetary union.Monetary Union ; Inflation tax ; Seigniorage ; Public debt.

Insulation impossible: monetary policy and regional fiscal spillovers in a federation

This paper studies the effects of monetary policy rules in a fiscal federation, such as the European Union. The focus of the analysis is the interaction between the fiscal policy of member countries (regions) and the monetary authority. Each of the countries structures its fiscal policy (spending and taxes) with the interests of its citizens in mind. Ricardian equivalence does not hold due to the presence of monetary frictions, modeled here as reserve requirements. When capital markets are integrated, the fiscal policy of one country influences equilibrium wages and interest rates. Under certain rules, monetary policy may respond to the price variations induced by regional fiscal policies. Depending on the type of rule it adopts, interventions by the monetary authority affect the magnitude and nature of the spillover from regional fiscal policy.Monetary Union, Inflation tax, Seigniorage, monetary rules, public debt.

Monetary rules and the spillover of regional fiscal policies in a federation.

This paper studies the effects of monetary policy rules in a fiscal federation, such as the European Union. The focus of the analysis is the interaction between the fiscal policy of member countries (regions) and the monetary authority. Each of the countries structures its fiscal policy (spending and taxes) with the interests of its citizens in mind. Ricardian equivalence does not hold due to the presence of monetary frictions, modelled here as reserve requirements. When capital markets are integrated, the fiscal policy of one country influences equilibrium wages and interest rates. Under certain rules, monetary policy may respond to the price variations induced by regional fiscal policies. Depending on the type of rule it adopts, interventions by the monetary authority affect the magnitude and nature of the spillover from regional fiscal policy.Monetary Union ; Inflation tax ; Seigniorage ; monetary rules ; public debt.

Approximate Minimum Diameter

We study the minimum diameter problem for a set of inexact points. By inexact, we mean that the precise location of the points is not known. Instead, the location of each point is restricted to a contineus region (\impre model) or a finite set of points (\indec model). Given a set of inexact points in one of \impre or \indec models, we wish to provide a lower-bound on the diameter of the real points. In the first part of the paper, we focus on \indec model. We present an $O(2^{\frac{1}{\epsilon^d}} \cdot \epsilon^{-2d} \cdot n^3 )$ time approximation algorithm of factor $(1+\epsilon)$ for finding minimum diameter of a set of points in $d$ dimensions. This improves the previously proposed algorithms for this problem substantially. Next, we consider the problem in \impre model. In $d$-dimensional space, we propose a polynomial time $\sqrt{d}$-approximation algorithm. In addition, for $d=2$, we define the notion of $\alpha$-separability and use our algorithm for \indec model to obtain $(1+\epsilon)$-approximation algorithm for a set of $\alpha$-separable regions in time $O(2^{\frac{1}{\epsilon^2}}\allowbreak . \frac{n^3}{\epsilon^{10} .\sin(\alpha/2)^3} )$

A reduced semantics for deciding trace equivalence using constraint systems

Many privacy-type properties of security protocols can be modelled using trace equivalence properties in suitable process algebras. It has been shown that such properties can be decided for interesting classes of finite processes (i.e., without replication) by means of symbolic execution and constraint solving. However, this does not suffice to obtain practical tools. Current prototypes suffer from a classical combinatorial explosion problem caused by the exploration of many interleavings in the behaviour of processes. M\"odersheim et al. have tackled this problem for reachability properties using partial order reduction techniques. We revisit their work, generalize it and adapt it for equivalence checking. We obtain an optimization in the form of a reduced symbolic semantics that eliminates redundant interleavings on the fly.Comment: Accepted for publication at POST'1

Approximating Nearest Neighbor Distances

Several researchers proposed using non-Euclidean metrics on point sets in Euclidean space for clustering noisy data. Almost always, a distance function is desired that recognizes the closeness of the points in the same cluster, even if the Euclidean cluster diameter is large. Therefore, it is preferred to assign smaller costs to the paths that stay close to the input points. In this paper, we consider the most natural metric with this property, which we call the nearest neighbor metric. Given a point set P and a path $\gamma$, our metric charges each point of $\gamma$ with its distance to P. The total charge along $\gamma$ determines its nearest neighbor length, which is formally defined as the integral of the distance to the input points along the curve. We describe a $(3+\varepsilon)$-approximation algorithm and a $(1+\varepsilon)$-approximation algorithm to compute the nearest neighbor metric. Both approximation algorithms work in near-linear time. The former uses shortest paths on a sparse graph using only the input points. The latter uses a sparse sample of the ambient space, to find good approximate geodesic paths.Comment: corrected author nam

Reversible surface aggregation in pore formation by pardaxin

The mechanism of leakage induced by surface active peptides is not yet fully understood. To gain insight into the molecular events underlying this process, the leakage induced by the peptide pardaxin from phosphatidylcholine/ phosphatidylserine/cholesterol large unilamellar vesicles was studied by monitoring the rate and extent of dye release and by theoretical modeling. The leakage occurred by an all-or-none mechanism: vesicles either leaked or retained all of their contents. We further developed a mathematical model that includes the assumption that certain peptides become incorporated into the vesicle bilayer and aggregate to form a pore. The current experimental results can be explained by the model only if the surface aggregation of the peptide is reversible. Considering this reversibility, the model can explain the final extents of calcein leakage for lipid/peptide ratios of > 2000:1 to 25:1 by assuming that only a fraction of the bound peptide forms pores consisting of M = 6 +/- 3 peptides. Interestingly, less leakage occurred at 43 degrees C, than at 30 degrees C, although peptide partitioning into the bilayer was enhanced upon elevation of the temperature. We deduced that the increased leakage at 30 degrees C was due to an increase in the extent of reversible surface aggregation at the lower temperature. Experiments employing fluorescein-labeled pardaxin demonstrated reversible aggregation of the peptide in suspension and within the membrane, and exchange of the peptide between liposomes. In summary, our experimental and theoretical results support reversible surface aggregation as the mechanism of pore formation by pardaxin

Verification of Hierarchical Artifact Systems

Data-driven workflows, of which IBM's Business Artifacts are a prime exponent, have been successfully deployed in practice, adopted in industrial standards, and have spawned a rich body of research in academia, focused primarily on static analysis. The present work represents a significant advance on the problem of artifact verification, by considering a much richer and more realistic model than in previous work, incorporating core elements of IBM's successful Guard-Stage-Milestone model. In particular, the model features task hierarchy, concurrency, and richer artifact data. It also allows database key and foreign key dependencies, as well as arithmetic constraints. The results show decidability of verification and establish its complexity, making use of novel techniques including a hierarchy of Vector Addition Systems and a variant of quantifier elimination tailored to our context.Comment: Full version of the accepted PODS pape

The Synthesis and Origin of the Pectic Polysaccharide Rhamnogalacturonan II – Insights from Nucleotide Sugar Formation and Diversity

There is compelling evidence showing that the structurally complex pectic polysaccharide rhamnogalacturonan II (RG-II) exists in the primary cell wall as a borate cross-linked dimer and that this dimer is required for the assembly of a functional wall and for normal plant growth and development. The results of several studies have also established that RG-II structure and cross-linking is conserved in vascular plants and that RG-II likely appeared early in the evolution of land plants. Two features that distinguish RG-II from other plant polysaccharides are that RG-II is composed of 13 different glycoses linked to each other by up to 22 different glycosidic linkages and that RG-II is the only polysaccharide known to contain both apiose and aceric acid. Thus, one key event in land plant evolution was the emergence of genes encoding nucleotide sugar biosynthetic enzymes that generate the activated forms of apiose and aceric acid required for RG-II synthesis. Many of the genes involved in the generation of the nucleotide sugars used for RG-II synthesis have been functionally characterized. By contrast, only one glycosyltransferase involved in the assembly of RG-II has been identified. Here we provide an overview of the formation of the activated sugars required for RG-II synthesis and point to the possible cellular and metabolic processes that could be involved in assembling and controlling the formation of a borate cross-linked RG-II molecule. We discuss how nucleotide sugar synthesis is compartmentalized and how this may control the flux of precursors to facilitate and regulate the formation of RG-II