Exogenous Shocks and Exchange Rate Management in Developing Countries

Even though globalization benefits less developed countries (LDCs), it also makes them more vulnerable to the exogenous shocks to the economies. Many LDCs rely on imported technologies and intermediate inputs to compete in the international export markets with better quality and cost efficient products. In this regard, exchange rate policies in respective countries have a direct bearing on the cost of production. This paper examines alternative exchange rate regimes to suggest an appropriate exchange rate policy in the context of developing countries. The paper utilizes a small open economy model involving direct supply-side effects of exchange rate and expectations of key economic variables and considers four possible exchange rate policies, e.g., fixed exchange rate, perfectly flexible exchange rate, leaning against the wind, and leaning with the wind. Contrary to the conventional wisdom, the paper finds that in the event of a shock, leaning against the wind is likely to be the most appropriate exchange rate policy. Moreover, in the event of rigid wages, a fixed exchange rate policy is advisable.globalization, exchange rate regimes, exchange rate policy

Lipid Peroxidation After Intracortical Injection of Ferric Chloride Increases the Incidence of Seizures in Young Rats

Clinical studies have shown that the incidence of early posttraumatic seizures ishigher in children than in adults and it has been proposed that iron-induced lipidperoxidation has an important role in the development of epileptogenic foci. In this study,we examined some of the hypothesized reasons for the difference in the incidence ofearly posttraumatic seizures between young and adult rats. Twelve young and twelveadult rats were randomized into 4 groups. Group 1 and 2 were control groups, eachcomprising of 6 young rats and 6 adult rats respectively and were given intracorticalinjections of normal saline. Group 3 and 4 were injury groups, again comprising 6 youngrats and 6 adult rats respectively and were given intracortical injections of FeCl3. All ratswere observed for 6 hours post injection for the occurrence of seizures and were thenkilled. The injected hemispheres were extirpated and tested for malondialdehyde (MDA)level and superoxide dismutase (SOD) activity as indices of oxidative damage. Resultsshowed that seizures were observed only in Group 3. Increased MDA level and decreasedSOD activity were observed in Group 3 (ANOVA, p<0.001). Increased MDA levels anddecreased SOD activity were significantly higher in rats with seizures (Group 3) than inthose without seizures (independent t-test, p<0.001). We conclude was that differentlevels of lipid peroxidation induced by intracortical ferric chloride injection may accountfor the different seizure incidence between young and adult rat

Financial Sector Reform and Its Impact on Investment and Economic Growth: An Econometric Approach

The financial sector is central to economic development as it serves the role of intermediary by mobilising savings and subsequently allocating credit for productive activities. However, in many developing countries including Pakistan, administered interest rate, domestic credit controls, high reserve requirements, use of captive banking system to finance large budgetary requirements of the government and controls on international capital inflows have remained the main features of the monetary policy. These repressive policies had their repercussions in the form of excess liquidity with the banking system, disintermediation of cash flows, segmentation of financial markets, underdeveloped money and capital markets, etc. [McKinnon (1973) and Shaw (1973)], therefore, argued that low interest rate ceilings unduly restrict the real flow of loanable funds, thus depressing the quantity of productive investment. Financial liberalisation, on the other hand, is defined as policy measures designed to deregulate certain operations of the financial system and transform its structure with a view to achieving a liberalised market oriented system with an appropriate regulatory framework. The financial sector reforms would lead to increase in loanable funds by attracting more household savings to bank deposits due to higher interest rates. This, in turn, would result in greater investment and faster economic growth.

Viability problem with perturbation in Hilbert space

This paper deals with the existence result of viable solutions of the differential inclusion $$\dot{x}(t) \in f(t,x(t)) + F(x(t))$$ $$x(t) \in K \quad \text{on } [0,T],$$ where $K$ is a locally compact subset in separable Hilbert space $H,$ $(f(s,\cdot))_s$ is an equicontinuous family of measurable functions with respect to $s$ and $F$ is an upper semi-continuous set-valued mapping with compact values contained in the Clarke subdifferential $\partial_{c} V(x)$ of an uniformly regular function $V.

Spin coherence times of point defects in two-dimensional materials from first principles

The spin coherence times of 69 triplet defect centers in 45 different 2D host materials are calculated using the cluster correlation expansion (CCE) method with parameters of the spin Hamiltonian obtained from density functional theory (DFT). Several of the triplets are found to exhibit extraordinarily large spin coherence times making them interesting for quantum information processing. The dependence of the spin coherence time on various factors, including the hyperfine coupling strength, the dipole-dipole coupling, and the nuclear g-factors, are systematically investigated. The analysis shows that the spin coherence time is insensitive to the atomistic details of the defect center and rather is dictated by the nuclear spin properties of the host material. Symbolic regression is then used to derive a simple expression for spin coherence time, which is validated on a test set of 55 doublet defects unseen by the regression model. The simple expression permits order-of-magnitude estimates of the spin coherence time without expensive first principles calculations

Reforming education in Pakistan – tracing global links

This paper is about tracing global links in national education reforms in Pakistan. The paper tries to describe globalization and its general effects on national policies. It particularly highlights the effects of globalization on education reforms, which are: competitiveness-driven, finance-driven and equity-driven. In light of these global education reform patterns the paper explores the major educational reforms being pursued in Pakistan since 1990s. The paper argues that globalization has seriously challenged the national reform policies, which are now becoming more and more globally driven. Rather than out rightly rejecting all global policies, engaging critically with them is the stance of the authors

Structures of falcipain-2 and falcipain-3 bound to small molecule inhibitors: implications for substrate specificity.

Falcipain-2 and falcipain-3 are critical hemoglobinases of Plasmodium falciparum, the most virulent human malaria parasite. We have determined the 2.9 A crystal structure of falcipain-2 in complex with the epoxysuccinate E64 and the 2.5 A crystal structure of falcipain-3 in complex with the aldehyde leupeptin. These complexes represent the first crystal structures of plasmodial cysteine proteases with small molecule inhibitors and the first reported crystal structure of falcipain-3. Our structural analyses indicate that the relative shape and flexibility of the S2 pocket are affected by a number of discrete amino acid substitutions. The cumulative effect of subtle differences, including those at "gatekeeper" positions, may explain the observed kinetic differences between these two closely related enzymes

Financial Sector Reform and Its Impact on Investment and Economic Growth: An Econometric Approach

The financial sector is central to economic development as it serves the role of intermediary by mobilising savings and subsequently allocating credit for productive activities. However, in many developing countries including Pakistan, administered interest rate, domestic credit controls, high reserve requirements, use of captive banking system to finance large budgetary requirements of the government and controls on international capital inflows have remained the main features of the monetary policy. These repressive policies had their repercussions in the form of excess liquidity with the banking system, disintermediation of cash flows, segmentation of financial markets, underdeveloped money and capital markets, etc. [McKinnon (1973) and Shaw (1973)], therefore, argued that low interest rate ceilings unduly restrict the real flow of loanable funds, thus depressing the quantity of productive investment