Trickle-Down Effects of Changing Value of Euro on US Economy

Historically, the US Dollar had been accepted as the strongest currency and it had no competition at the regional or global level. But inception of Euro changed this unique stature and status enjoyed by USD. With introduction of Euro as the common currency, the European Union became USA’s closest competitor in terms of economic size, performance, indicators and political and economic clout. Over time, value of euro started appreciating and accordingly, Euro/USD exchange rate which is fully floating, started rising. A rising Euro affects the US economy in three ways: directly, indirectly and through a cascading effect caused by an interaction of these direct and indirect influences. This paper attempts to identify and explore the effects of an appreciating Euro on some select economic indicators of the US, both historically and projected. It also establishes the relationship between some of these indicators which are not directly cross-related, by analyzing the impact of the Euro on the economy’s most sensitive economic parameters. Section I briefly touches upon the scope and objective of this paper. Section II introduces the concept of exchange rate, different exchange rate regimes and determinants of exchange rates. Section III views the historical relationship between the Euro/USD exchange rate and the most important macroeconomic indictors of the US economy. Section IV explores the projected impact of potential future Euro/USD exchange rate on the same indictors and explains the linkages. Section V concludes.Euro, Appreciation, US Economy, Trickle-Down,Exchange Rate,Currency

FULL Capital Account Convertibility:India's Readiness in the context of Financial Integration

During the recent turmoil in world financial market and its cascading disruptive effects, the role of financial integration assumes importance. A common outshoot of such financial crises generated locally or regionally is that they spread faster to other connected markets and economies to the extent such markets and countries are integrated with the originator country. The emerging/developing/non-developed countries bear their share of the brunt mostly due to their dependence on the advanced economies by way of trade or financial partnerships. There exists the famous adage: “If the US sneezes, rest of the world catches pneumonia.” As of late, the severity of this phenomenon might have been reduced – owing largely to emergence of alternate economic powers that are characterized by high rate of sustained growth – and also to what economists call the “De-Coupling Effect” – that some of these economies have been able to insulate themselves from shockwaves in other countries in such a way that susceptibility to such external disruptions has lessened, the domestic balance remaining largely unaltered. However, in the age of increasing global integration, growing countries can not afford to stay highly insulated, closed or de-coupled from other economies. To accelerate such integration, countries resort to various approaches, financial integration being a prime one among them. And financial integration presupposes capital account liberalization. At one end of the spectrum is fully restricted capital account; at the other, a fully convertible capital account. Many of the developed countries practice the later. The least developed countries have a too low extent of capital account liberalization. The emerging countries largely fall midway – they have partially open and liberalized capital account. Among the emerging economies, India occupies a dominant space. According to IMF and other reports, India would come in the top three of the economically most powerful economies by 2050. It has a much higher growth rate (more than 8% per annum) compared to many developed countries. This paper examines the status of readiness of India in adopting a fully convertible capital account, keeping in mind its present and future financial integration status and objectives.CAC; Capital Account Convertibility; India; Financial Integration

FULL Capital Account Convertibility:India's Readiness in the context of Financial Integration

During the recent turmoil in world financial market and its cascading disruptive effects, the role of financial integration assumes importance. A common outshoot of such financial crises generated locally or regionally is that they spread faster to other connected markets and economies to the extent such markets and countries are integrated with the originator country. The emerging/developing/non-developed countries bear their share of the brunt mostly due to their dependence on the advanced economies by way of trade or financial partnerships. There exists the famous adage: “If the US sneezes, rest of the world catches pneumonia.” As of late, the severity of this phenomenon might have been reduced – owing largely to emergence of alternate economic powers that are characterized by high rate of sustained growth – and also to what economists call the “De-Coupling Effect” – that some of these economies have been able to insulate themselves from shockwaves in other countries in such a way that susceptibility to such external disruptions has lessened, the domestic balance remaining largely unaltered. However, in the age of increasing global integration, growing countries can not afford to stay highly insulated, closed or de-coupled from other economies. To accelerate such integration, countries resort to various approaches, financial integration being a prime one among them. And financial integration presupposes capital account liberalization. At one end of the spectrum is fully restricted capital account; at the other, a fully convertible capital account. Many of the developed countries practice the later. The least developed countries have a too low extent of capital account liberalization. The emerging countries largely fall midway – they have partially open and liberalized capital account. Among the emerging economies, India occupies a dominant space. According to IMF and other reports, India would come in the top three of the economically most powerful economies by 2050. It has a much higher growth rate (more than 8% per annum) compared to many developed countries. This paper examines the status of readiness of India in adopting a fully convertible capital account, keeping in mind its present and future financial integration status and objectives

Trickle-Down Effects of Changing Value of Euro on US Economy

Historically, the US Dollar had been accepted as the strongest currency and it had no competition at the regional or global level. But inception of Euro changed this unique stature and status enjoyed by USD. With introduction of Euro as the common currency, the European Union became USA’s closest competitor in terms of economic size, performance, indicators and political and economic clout. Over time, value of euro started appreciating and accordingly, Euro/USD exchange rate which is fully floating, started rising. A rising Euro affects the US economy in three ways: directly, indirectly and through a cascading effect caused by an interaction of these direct and indirect influences. This paper attempts to identify and explore the effects of an appreciating Euro on some select economic indicators of the US, both historically and projected. It also establishes the relationship between some of these indicators which are not directly cross-related, by analyzing the impact of the Euro on the economy’s most sensitive economic parameters. Section I briefly touches upon the scope and objective of this paper. Section II introduces the concept of exchange rate, different exchange rate regimes and determinants of exchange rates. Section III views the historical relationship between the Euro/USD exchange rate and the most important macroeconomic indictors of the US economy. Section IV explores the projected impact of potential future Euro/USD exchange rate on the same indictors and explains the linkages. Section V concludes

FULL Capital Account Convertibility:India's Readiness in the context of Financial Integration

During the recent turmoil in world financial market and its cascading disruptive effects, the role of financial integration assumes importance. A common outshoot of such financial crises generated locally or regionally is that they spread faster to other connected markets and economies to the extent such markets and countries are integrated with the originator country. The emerging/developing/non-developed countries bear their share of the brunt mostly due to their dependence on the advanced economies by way of trade or financial partnerships. There exists the famous adage: “If the US sneezes, rest of the world catches pneumonia.” As of late, the severity of this phenomenon might have been reduced – owing largely to emergence of alternate economic powers that are characterized by high rate of sustained growth – and also to what economists call the “De-Coupling Effect” – that some of these economies have been able to insulate themselves from shockwaves in other countries in such a way that susceptibility to such external disruptions has lessened, the domestic balance remaining largely unaltered. However, in the age of increasing global integration, growing countries can not afford to stay highly insulated, closed or de-coupled from other economies. To accelerate such integration, countries resort to various approaches, financial integration being a prime one among them. And financial integration presupposes capital account liberalization. At one end of the spectrum is fully restricted capital account; at the other, a fully convertible capital account. Many of the developed countries practice the later. The least developed countries have a too low extent of capital account liberalization. The emerging countries largely fall midway – they have partially open and liberalized capital account. Among the emerging economies, India occupies a dominant space. According to IMF and other reports, India would come in the top three of the economically most powerful economies by 2050. It has a much higher growth rate (more than 8% per annum) compared to many developed countries. This paper examines the status of readiness of India in adopting a fully convertible capital account, keeping in mind its present and future financial integration status and objectives

Trickle-Down Effects of Changing Value of Euro on US Economy

Historically, the US Dollar had been accepted as the strongest currency and it had no competition at the regional or global level. But inception of Euro changed this unique stature and status enjoyed by USD. With introduction of Euro as the common currency, the European Union became USA’s closest competitor in terms of economic size, performance, indicators and political and economic clout. Over time, value of euro started appreciating and accordingly, Euro/USD exchange rate which is fully floating, started rising. A rising Euro affects the US economy in three ways: directly, indirectly and through a cascading effect caused by an interaction of these direct and indirect influences. This paper attempts to identify and explore the effects of an appreciating Euro on some select economic indicators of the US, both historically and projected. It also establishes the relationship between some of these indicators which are not directly cross-related, by analyzing the impact of the Euro on the economy’s most sensitive economic parameters. Section I briefly touches upon the scope and objective of this paper. Section II introduces the concept of exchange rate, different exchange rate regimes and determinants of exchange rates. Section III views the historical relationship between the Euro/USD exchange rate and the most important macroeconomic indictors of the US economy. Section IV explores the projected impact of potential future Euro/USD exchange rate on the same indictors and explains the linkages. Section V concludes

Can LIGO Detect Asymmetric Dark Matter?

Dark matter from the galactic halo can accumulate in neutron stars and transmute them into sub-2.5 $M_\odot$ black holes if the dark matter particles are heavy, stable, and have interactions with nucleons. We show that non-detection of gravitational waves from mergers of such low-mass black holes can constrain the interactions of asymmetric dark matter particles with nucleons. We find benchmark constraints with LIGO O3 data, viz., $\sigma_{\chi n} \geq {\cal O}(10^{-47})$ cm$^2$ for bosonic DM with $m_\chi\sim$ PeV (or $m_\chi\sim$ GeV, if they can Bose-condense) and $\geq {\cal O}(10^{-46})$ cm$^2$ for fermionic DM with $m_\chi \sim 10^3$ PeV. These bounds depend on the priors on DM parameters and on the currently uncertain binary neutron star merger rate density. However, if null-detection continues with increased exposure over the next decade, LIGO will set remarkable constraints. We find the forecasted sensitivity to heavy asymmetric dark matter to be world-leading, viz., dipping many orders of magnitude below the neutrino floor and completely testing the dark matter solution to missing pulsars in the Galactic center, and demonstrate a windfall science-case for gravitational wave detectors.Comment: 14 pages, 6 figures. Comments welcom

Lung inflammation and disease: A perspective on microbial homeostasis and metabolism

It is now well appreciated that the human microbiome plays a significant role in a number of processes in the body, significantly affecting its metabolic, inflammatory, and immune homeostasis. Recent research has revealed that almost every mucosal surface in the human body is associated with a resident commensal microbiome of its own. While the gut microbiome and its role in regulation of host metabolism along with its alteration in a disease state has been well studied, there is a lacuna in understanding the resident microbiota of other mucosal surfaces. Among these, the scientific information on the role of lung microbiota in pulmonary diseases is currently severely limited. Historically, lungs have been considered to be sterile and lung diseases have only been studied in the context of bacterial pathogenesis. Recently however, studies have revealed a resilient microbiome in the upper and lower respiratory tracts and there is increased evidence on its central role in respiratory diseases. Knowledge of lung microbiome and its metabolic fallout (local and systemic) is still in its nascent stages and attracting immense interest in recent times. In this review, we will provide a perspective on lung‐associated metabolic disorders defined for lung diseases (e.g., chronic obstructive pulmonary disease, asthma, and respiratory depression due to infection) and correlate it with lung microbial perturbation. Such perturbations may be due to altered biochemical or metabolic stress as well. Finally, we will draw evidence from microbiome and classical microbiology literature to demonstrate how specific lung morbidities associate with specific metabolic characteristics of the disease, and with the role of microbiome in this context. © 2018 IUBMB Life, 71(1):152–165, 201

Gain-of-function Tibetan PHD2D4E;C127S variant suppresses monocyte function: A lesson in inflammatory response to inspired hypoxia

Background: We have previously described an evolutionarily selected Tibetan prolyl hydroxylase-2 (PHD2D4E;C127S) variant that degrades the hypoxia-inducible factor (HIFα) more efficiently and protects these highlanders from hypoxia-triggered elevation in haemoglobin concentration. High altitude is known to cause acute mountain sickness (AMS) and high-altitude pulmonary edema (HAPE) in a section of rapidly ascending non-acclimatised lowlanders. These morbidities are often accompanied by inflammatory response and exposure to hypobaric hypoxia is presumed to be the principal causative agent. We have investigated whether PHD2D4E;C127S variant is associated with prevention of hypoxia-mediated inflammatory milieu in Tibetan highlanders and therefore identify a potential target to regulate inflammation. Methods: We genotyped the Tibetans using DNA isolated from whole blood. Thereafter immunophenotying was performed on PBMCs from homozygous PHD2D4E;C127S and PHD2WT individuals using flow cytometry. RNA isolated from these individuals was used to evaluate the peripheral level of important transcripts associated with immune as well as hypoxia response employing the nCounter technology. The ex-vivo findings were validated by generating monocytic cell lines (U937 cell line) expressing PHD2D4E;C127S and PHD2WT variants post depletion of endogenous PHD2. We had also collected whole blood samples from healthy travellers and travellers afflicted with AMS and HAPE to evaluate the significance of our ex-vivo and in vitro findings. Hereafter, we also attempted to resolve hypoxia-triggered inflammation in vitro as well as in vivo by augmenting the function of PHD2 using alpha-ketoglutarate (αKG), a co-factor of PHD2. Findings: We report that homozygous PHD2D4E;C127S highlanders harbour less inflammatory and patrolling monocytes in circulation as compared to Tibetan PHD2WT highlanders. In response to in vitro hypoxia, secretion of IL6 and IL1β from PHD2D4E;C127S monocytes, and their chemotactic response compared to the PHD2WT are compromised, corresponding to the down-modulated expression of related signalling molecules RELA, JUN, STAT1, ATF2 and CXCR4. We verified these functional outcomes in monocytic U937 cell line engineered to express PHD2D4E;C127S and confirmed the down-modulation of the signalling molecules at protein level under hypoxia. In contrast, non-Tibetan sojourners with AMS and HAPE at high altitude (3,600 m above sea level) displayed significant increase in these inflammatory parameters. Our data henceforth underline the role of gain-of-function of PHD2 as the rate limiting factor to harness hyper-activation of monocytes in hypoxic environment. Therefore upon pre-treatment with αKG, we observed diminished inflammatory response of monocytes in vitro and reduction in leukocyte infiltration to the lungs in mice exposed to normobaric hypoxia. Interpretation: Our report suggests that gain-of-function PHD2 D4E;C127S variant can therefore protect against inflammation elicited by hypobaric hypoxia. Augmentation of PHD2 activity therefore may be an important method to alleviate inflammatory response to inspired hypoxia. Funding: This study is supported by the Department of Biotechnology, Government of India