The term structure of interest rates in Australia: an application of long run structural modelling

The term structure of interest rates in Australia, using data of different types as well as frequencies covering the period 1991(11) to 2000(9) is investigated using a relatively new modelling strategy previously untested on Australian interest rate data. Developed by Pesaran and Shin (2002), this strategy incorporates long-run structural relationships in an otherwise unrestricted vector autoregression model (VAR). The econometric tests indicate that in Australia, contrary to popular belief, long-term interest rates more often than not lead shorter-term interest rates, at least for the interest rates and time period under investigation. While these findings are not conclusive, if they are an accurate representation of interest rate behaviour, this does pose a major challenge for the monetary policy in Australia. The findings are consistent with the recent experience of the USA as well (Sarno and Thornton, 2003). The findings of the study based on recent rigorous time-series techniques tend to cast doubts on the efficiency and effectiveness of current monetary policy in Australia.

Extensive sex differences at the initiation of genetic recombination

International audienceMeiotic recombination differs between males and females; however, when and how these differences are established is unknown. Here we identify extensive sex differences at the initiation of recombination by mapping hotspots of meiotic DNA double-strand breaks in male and female mice. Contrary to past findings in humans, few hotspots are used uniquely in either sex. Instead, grossly different recombination landscapes result from up to fifteen-fold differences in hotspot usage between males and females. Indeed, most recombination occurs at sex-biased hotspots. Sex-biased hotspots seem to be partly determined by chromosome structure, and DNA methylation, which is absent in females at the onset of meiosis, has a substantial role. Sex differences are also evident later in meiosis as the rate at which meiotic breaks are repaired as crossovers differs between males and females in distal regions. The suppression of distal crossovers may help to minimize age-related aneuploidy that arises owing to cohesion loss during dictyate arrest in females