Is the supply of long-term debt independent of the term premia? Evidence from Portugal

An important assumption in the statistical analysis of the financial market effects of the central bank’s large scale asset purchase program is that the "long-term debt stock variables were exogenous to term premia". We test this assumption for a small open economy in a currency union over the period 2000M3 to 2015M10, via the determinants of short- term financing relative to long-term financing. Empirical estimations indicate that the maturity composition of debt does not respond to the level of interest rate or to the term structure. These findings suggest a lower adherence to the cost minimization mandate of debt management. However, we find that volatility and relative market size respectively decrease and increase short-term financing relative to long-term financing, while it decreases with an increase in government indebtedness

High-resolution monsoon records since last glacial maximum: a comparison of marine and terrestrial paleoarchives from South Asia

Agricultural production and the availability of fresh water in Indian subcontinent critically depend on the monsoon rains. Therefore it is vital to understand the causal mechanisms underlying the observed changes in the Indian monsoon in the past. Paleomonsoon reconstructions show that the water discharge from the Ganges-Brahmaputra River system to the Bay of Bengal was maximum in the early to mid-Holocene; data from the Western Arabian Sea and Omanian speleothems indicate declining monsoon winds during the Holocene, whereas records from the South West Monsoon (SWM) precipitation dominated eastern Arabian Sea show higher runoff from the Western Ghats indicating gradually increasing monsoon precipitation during the Holocene. Thus there exists considerable spatial variability in the monsoon in addition to the temporal variability that needs to be assessed systematically. Here we discuss the available high resolution marine and terrestrial paleomonsoon records such as speleothems and pollen records of the SWM from important climatic regimes such as Western Arabian Sea, Eastern Arabian Sea, Bay of Bengal to assess what we have learnt from the past and what can be said about the future of water resources of the subcontinent in the context of the observed changes