Monetary targeting in practice : the German experience

From the mid-seventies on, the central banks of most major industrial countries switched to monetary targeting. The Bundesbank was the first central bank to take this step, making the switch at the end of 1974. This changeover to monetary targeting was due to the difficulties which the Bundesbank - like other central banks - was facing in pursuing its original strategy, and whichcame to a head in the early seventies, when inflation escalated. A second factor was the collapse of the Bretton Woods system of fixed exchange rates, which created the necessary scope for national monetary targeting. Finally, the advance of monetarist ideas fostered the explicit turn towards monetary targets, although the Bundesbank did not implement these in a mechanistic way. Whereas the Bundesbank has adhered to its policy of monetary targeting up to the present, nowadays monetary targeting plays only a minor role worldwide. Many central banks have switched to the strategy of direct inflation targeting. Others favour a more discretionary approach or a policy which is geared to the exchange rate. In the academic debate, monetary targeting is often presented as an outdated approach which has long since lost its basis of stable money demand. These findings give riseto a number of questions: Has monetary targeting actually become outdated? Which role is played by the concrete design of this strategy, and, against this background, how easily can it be transferred to European monetary union? This paper aims to answer these questions, drawing on the particular experience which the Bundesbank has gained of monetary targeting. It seems appropriate to discuss monetary targeting by using a specific example, since this notion is not very precise. This applies, for example, to the money definition used, the way the target is derived, the stringency applied in pursuing the target and the monetary management procedure

Symposium on rationality and commitment: introduction

In his critique of rational choice theory, Amartya Sen claims that committed agents do not (or not exclusively) pursue their own goals. This claim appears to be nonsensical since even strongly heteronomous or altruistic agents cannot pursue other people's goals without making them their own. It seems that self-goal choice is constitutive of any kind of agency. In this paper, Sen's radical claim is defended. It is argued that the objection raised against Sen's claim holds only with respect to individual goals. Not all goals, however, are individual goals; there are shared goals, too. Shared goals are irreducible to individual goals, as the argument from we-derivativeness and the argument from normativity show. It is further claimed that an adequate account of committed action defies both internalism and externalism about practical reason

In-phase and anti-phase synchronization in noisy Hodgkin-Huxley neurons

We numerically investigate the influence of intrinsic channel noise on the dynamical response of delay-coupling in neuronal systems. The stochastic dynamics of the spiking is modeled within a stochastic modification of the standard Hodgkin-Huxley model wherein the delay-coupling accounts for the finite propagation time of an action potential along the neuronal axon. We quantify this delay-coupling of the Pyragas-type in terms of the difference between corresponding presynaptic and postsynaptic membrane potentials. For an elementary neuronal network consisting of two coupled neurons we detect characteristic stochastic synchronization patterns which exhibit multiple phase-flip bifurcations: The phase-flip bifurcations occur in form of alternate transitions from an in-phase spiking activity towards an anti-phase spiking activity. Interestingly, these phase-flips remain robust in strong channel noise and in turn cause a striking stabilization of the spiking frequency

Amplification of Cosmological Inhomogeneities by the QCD Transition

The cosmological QCD transition affects primordial density perturbations. If the QCD transition is first order, the sound speed vanishes during the transition and density perturbations fall freely. For scales below the Hubble radius at the transition the primordial Harrison-Zel'dovich spectrum of density fluctuations develops large peaks and dips. These peaks grow with wave number for both the hadron-photon-lepton fluid and for cold dark matter. At the horizon scale the enhancement is small. This by itself does not lead to the formation of black holes at the QCD transition. The peaks in the hadron-photon-lepton fluid are wiped out during neutrino decoupling. For cold dark matter that is kinetically decoupled at the QCD transition (e.g., axions or primordial black holes) these peaks lead to the formation of CDM clumps of masses $10^{-20} M_\odot< M_{\rm clump} < 10^{-10} M_\odot$.Comment: 39 pages, 10 figures, RevTeX; (1) ETH Zuerich, (2) Univ. Frankfurt; improved presentation of 'Introduction' and 'Collisional Damping at Neutrino Decoupling', results unchanged; accepted for publication in Phys. Rev.

Dynamic mode decomposition of numerical and experimental data

International audienceThe description of coherent features of fluid flow is essential to our understanding of fluid-dynamical and transport processes. A method is introduced that is able to extract dynamic information from flow fields that are either generated by a (direct) numerical simulation or visualized/measured in a physical experiment. The extracted dynamic modes, which can be interpreted as a generalization of global stability modes, can be used to describe the underlying physical mechanisms captured in the data sequence or to project large-scale problems onto a dynamical system of significantly fewer degrees of freedom. The concentration on subdomains of the flow field where relevant dynamics is expected allows the dissection of a complex flow into regions of localized instability phenomena and further illustrates the flexibility of the method, as does the description of the dynamics within a spatial framework. Demonstrations of the method are presented consisting of a plane channel flow, flow over a two-dimensional cavity, wake flow behind a flexible membrane and a jet passing between two cylinders. © 2010 Cambridge University Press

Solving k-Set Agreement with Stable Skeleton Graphs

In this paper we consider the k-set agreement problem in distributed message-passing systems using a round-based approach: Both synchrony of communication and failures are captured just by means of the messages that arrive within a round, resulting in round-by-round communication graphs that can be characterized by simple communication predicates. We introduce the weak communication predicate PSources(k) and show that it is tight for k-set agreement, in the following sense: We (i) prove that there is no algorithm for solving (k-1)-set agreement in systems characterized by PSources(k), and (ii) present a novel distributed algorithm that achieves k-set agreement in runs where PSources(k) holds. Our algorithm uses local approximations of the stable skeleton graph, which reflects the underlying perpetual synchrony of a run. We prove that this approximation is correct in all runs, regardless of the communication predicate, and show that graph-theoretic properties of the stable skeleton graph can be used to solve k-set agreement if PSources(k) holds.Comment: to appear in 16th IEEE Workshop on Dependable Parallel, Distributed and Network-Centric System