Monetary and fiscal policy interaction and government debt stabilization

In many developing and developed countries, government debt stabilization is an important policy issue. This paper models the strategic interaction between the monetary authorities who control monetization and the fiscal authorities who control primary fiscal deficits. Government debt dynamics are driven by the interest payments on outstanding debt and the part of the primary fiscal deficits that is not monetized. Modelling the interaction as a differential game, we compare the cooperative equilibrium and the non-cooperative Nash open-loop equilibrium. The well-known unpleasant monetarist arithmetic is reinterpreted in this differential game framework. We consider also the effects of making the Central Bank more independent.Game Theory;Central Banks;Monetary Policy;National Debt;Fiscal Policy;monetary economics

Money, Fiscal Defecits and Government Debt in a Monetary Union

The replacement of national currencies by a common currency in the EMU causes a monetary externality if the European Central Bank is inclined to monetize part of outstanding government debt in the community.High government debt in one part of the EU then increases the common inflation rate.We model debt stabilization in the EU as a differential game between fiscal authorities and the ECB.Three different equilibria are considered: the Nash open-loop equilibrium, the Stackelberg open-loop equilibrium with the ECB leading and the Stackelberg open-loop equilibrium with the fiscal authorities leading.Dynamics of the fiscal deficits, inflation and government debt in a monetary union are derived and compared with an EU with national monetary policies

Metamorphic conditions in the Nilgiri Granulite Terrane and the adjacent Moyar and Bhavani Shear Zones: A reevaluation

Data were presented on pressure and temperature determinations from the Nilgiri Hills. About 70 samples were analyzed by probe and several calibrations of garnet-pyroxene thermometry and barometry applied. Most calibrations gave considerable scatter; however, a new calibration by Bhattacharya, Raith, Lal, and others, accounting for nonideality in both garnet and orthopyroxene, gave consistent results of 754 + or - 52 C and 9.2 + or - 0.7 kbar. On the regional scale, a pressure increase of 6.5 to 7 kbar in the SW to 11 kbar in the NE was related to block tilting. A continuous pressure gradient into the Moyar shear zone suggests that the zone is not a suture juxtaposing unrelated blocks

Gneiss-charnockite transformation at Kottavattam, Southern Kerala (India)

At Kottavattam, leucocratic granitic garnet-biotite gneisses (age less than 2 Ga) were partially transformed to coarse-grained charnockite along a system of conjugate fractures (N70E and N20W) and the foliation planes (N60 to 80W; dip 80 to 90 SW) about 550 m.y. ago. To examine and quantify changes in fabric, mineralogy, pore fluids and chemical composition associated with this process, large rock specimens showing gneiss-charnockite transition were studied in detail. The results of the present study corroborate the concept that charnockite formation at Kottavattam is an internally-generated phenomenon and was not triggered by the influx of carbonic fluids from a deep-seated source. It is suggested that charnockitization was caused by the following mechanism: (1) near-isothermal decompression during uplift of the gneiss complex led to an increase of the pore fluid pressure (P sub fluid greater than P sub lith) which - in a regime of anisotropic stress - triggered or at least promoted the development of conjugate fractures; (2) the simultaneous release of pore fluids from bursting fluid inclusions and their escape into the developing fracture system resulted in a drop of fluid pressure; and (3) the internal generation and buffering of the fluids and their, probably, limited migration in an entirely granitic rock system explains the absence of any significant metasomatic mass transfer

General Movements in preterm infants undergoing craniosacral therapy: a randomised controlled pilot-trial

BACKGROUND: The objective of this study was to investigate neurological short-term effects of craniosacral therapy as an ideal form of osteopathic manipulative treatment (OMT) due to the soft kinaesthetic stimulation. METHODS: Included were 30 preterm infants, with a gestational age between 25 and 33 weeks, who were admitted to the neonatal intensive care unit of the University Hospital of Graz, Austria. The infants were randomized either into the intervention group (IG) which received standardised craniosacral therapy, or the control group (CG) which received standard care. To guarantee that only preterm infants with subsequent normal neurodevelopment were included, follow up was done regularly at the corrected age (= actual age in weeks minus weeks premature) of 12 and 24 months. After 2 years 5 infants had to be excluded (IG; n = 12; CG: n = 13). General Movements (GMs) are part of the spontaneous movement repertoire and are present from early fetal life onwards until the end of the first half year of life. To evaluate the immediate result of such an intervention, we selected the General Movement Assessment (GMA) as an appropriate tool. Besides the global GMA (primary outcome) we used as detailed GMA, the General Movement Optimality Score (GMOS- secondary outcome), based on Prechtl’s optimality concept. To analyse GMOS (secondary outcome) a linear mixed model with fixed effects for session, time point (time point refers to the comparisons of the measurements before vs. after each session) and intervention (IG vs. CG), random effect for individual children and a first order autoregressive covariance structure was used for calculation of significant differences between groups and interactions. Following interaction terms were included in the model: session*time point, session*intervention, time point*intervention and session*time point*intervention. Exploratory post hoc analyses (interaction: session*time point*intervention) were performed to determine group differences for all twelve measurement (before and after all 6 sessions) separately. RESULTS: Between groups no difference in the global GMA (primary outcome) could be observed. The GMOS (secondary outcome) did not change from session to session (main effect session: p = 0.262) in the IG or the CG. Furthermore no differences between IG and CG (main effect group: p = 0.361) and no interaction of time*session could be observed (p = 0.658). Post hoc analysis showed a trend toward higher values before (p = 0.085) and after (p = 0.075) the first session in CG compared to IG. At all other time points GMOS were not significantly different between groups. CONCLUSION: We were able to indicate that a group of “healthy” preterm infants undergoing an intervention with craniosacral therapy (IG) showed no significant changes in GMs compared to preterm infants without intervention (CG). In view of the fact that the global GMA (primary outcome) showed no difference between groups and the GMOS (detailed GMA-secondary outcome) did not deteriorate in the IG, craniosacral therapy seems to be safe in preterm infants. TRIAL REGISTRATION: German Clinical Trials Register DRKS00004258

A Model of Vertical Oligopolistic Competition

This paper develops a model of successive oligopolies with endogenous market entry, allowing for varying degrees of product differentiation and entry costs in both markets. Our analysis shows that the downstream conditions dominate the overall profitability of the two-tier structure while the upstream conditions mainly affect the distribution of profits. We compare the welfare effects of upstream versus downstream deregulation policies and show that the impact of deregulation may be overvalued when ignoring feedback effects from the other market. Furthermore, we analyze how different forms of vertical restraints influence the endogenous market structure and show when they are welfare enhancing