Sterilized Foreign Exchange Market Interventions in a Chartist-Fundamentalist Exchange Rate Model

Sterilized foreign exchange market interventions are commonly dismissed by economists as an ineffective policy instrument. Nevertheless many central banks operating under independently floating exchange rates regimes are often engaged in sales and purchases of foreign exchange in order to manipulate the current value of their currencies. In this paper we argue that the skepticism of many economists can be ascribed to their orientation on fundamental-based, efficient-market exchange rate models. Given their weak empirical support, however, it is unreasonable to evaluate the effectiveness of sterilized foreign exchange interventions against the background of this class of models. Therefore, the purpose of this paper is to investigate the effectiveness of sterilized foreign exchange market interventions on the basis of a more suitable model. Using a chartist-fundamentalist model we show that central banks can influence exchange rates by using sterilized interventions. In particular, turning points occur earlier and exchange rate misalignments are substantially reduced. --Foreign exchange,central bank intervention,heterogeneous expectation

Evaluating EU Regional Policy: Many Empirical Specifications, One (Unpleasant) Result

Numerous studies have focused on the role of EU regional policy in fostering growth and convergence among European regions, why conducting another one? We argue that two facts are still lacking in the actual academic debate in order to get a sound empirical identification strategy and reliable results: First, one should take the theoretical underpinnings of regional growth models more serious, and second, a likewise careful account of the role of spatial dependence in the underlying data is needed. Though research has increasingly become aware of the latter point as important control factor for regional heterogeneity and omitted variables, in empirical operationalization still the ad-hoc inclusion of a hardly interpretable ‘catch-all’ spatial lag term of the endogenous variable is the first choice. We rather follow the lines of new theoretical and empirical approaches aiming at directly quantifying interregional spillovers associated with the amount of funds granted to lagging regions and their neighborhood. The dataset includes 127 NUTS1/-2 regions within the EU15 over the decade 1997-2007. In the spotlight of the investigation are the Objective 1 payments which are provided for lagging regions with a GDP p.c. of less than 75% of the EU average. These payments shall represent the main instrument to fulfill the central aim of European regional policy, the boost of convergence and harmonic growth over the EU. They represent about two third of the whole European cohesion policy. In our estimations we run a neoclassical convergence model in mainly four different specifications. On the one hand we separate in the aspatial and spatial models. On the other hand we run additive and multiplicative applications in order to consider the right coefficient interpretations. We estimate the model in various econometric specifications to point out the effectiveness of these funding. Our results all hint to the unpleasant result that EU structural funds objective 1 funding has a remarkably little or even negative direct impact on regional growth within the EU15. The spatial funding effects turn into negative significance in the most model specifications.

Software-Defined Networks Supporting Time-Sensitive In-Vehicular Communication

Future in-vehicular networks will be based on Ethernet. The IEEE Time-Sensitive Networking (TSN) is a promising candidate to satisfy real-time requirements in future car communication. Software-Defined Networking (SDN) extends the Ethernet control plane with a programming option that can add much value to the resilience, security, and adaptivity of the automotive environment. In this work, we derive a first concept for combining Software-Defined Networking with Time-Sensitive Networking along with an initial evaluation. Our measurements are performed via a simulation that investigates whether an SDN architecture is suitable for time-critical applications in the car. Our findings indicate that the control overhead of SDN can be added without a delay penalty for the TSN traffic when protocols are mapped properly.Comment: To be published at IEEE VTC2019-Sprin

Parametric Representation of Tactile Numerosity in Working Memory

Estimated numerosity perception is processed in an approximate number system (ANS) that resembles the perception of a continuous magnitude. The ANS consists of a right lateralized frontoparietal network comprising the lateral prefrontal cortex (LPFC) and the intraparietal sulcus. Although the ANS has been extensively investigated, only a few studies have focused on the mental representation of retained numerosity estimates. Specifically, the underlying mechanisms of estimated numerosity working memory (WM) is unclear. Besides numerosities, as another form of abstract quantity, vibrotactile WM studies provide initial evidence that the right LPFC takes a central role in maintaining magnitudes. In the present fMRI multivariate pattern analysis study, we designed a delayed match-to-numerosity paradigm to test what brain regions retain approximate numerosity memoranda. In line with parametric WM results, our study found numerosity-specific WM representations in the right LPFC as well as in the supplementary motor area and the left premotor cortex extending into the superior frontal gyrus, thus bridging the gap in abstract quantity WM literature

Refinements of the Bottom and Strange MSSM Higgs Yukawa Couplings at NNLO

We extend the already existing two-loop calculation of the effective bottom-Yukawa coupling in the MSSM. In addition to the resummation of the dominant corrections for large values of tg$\beta$, we include the subleading terms related to the trilinear Higgs coupling $A_b$ and contributions induced by the electroweak gauge couplings. This calculation has been extended to the NNLO corrections to the MSSM strange-Yukawa coupling. Our analysis leads to residual theoretical uncertainties of the effective Yukawa couplings at the per-cent level.Comment: 23 pages, 9 figures, extension of the work described in arxiv:1001.1935 and arxiv:0808.0087, reference added, substantial upgrade to the full Delta_b results at NNL

The BMW model: A new framework for teaching monetary macroeconomics in closed and open economies

While the IS/LM-AS/AD model is still the central tool of macroeconomic teaching it has been criticised by several economists. The model is unable to deal with a monetary policy that uses the interest rate as its operating target ( Romer [2000]). Walsh [2002] has criticised that it is not suited for an analysis of inflation targeting. We present the BMW model as an alternative framework, which develops the Romer approach into a simple macroeconomic model. It can deal with issues like inflation targeting, monetary policy rules, and central bank credibility. Our open-economy version is a powerful alternative to the IS/LM-based Mundell-Fleming (MF) model. The main advantage of the open-economy BMW model is its ability to discuss the role of inflation and the determination of flexible exchange rates while the MF model is based on fixed prices and constant exchange rates. --monetary policy,inflation targeting,optimal interest rate rules,simple rules,managed floating,IS/LM,Mundell-Fleming