Share prices, house prices and monetary policy

Recent developments in stock and house prices revived the debate on the role of asset prices in the conduct of monetary policy. The article first explores the links between asset price fluctuations, macroeconomic developments and monetary policy, highlighting the possibility of asset price booms and bursts in an environment of stable consumer prices and the challenges for monetary policy. The problem of identification of “bubbles” is then illustrated by an assessment of recent developments in stock prices in the United States and the euro area and in house prices in the euro area, with special attention for the fast-increasing house prices in some countries and for the Belgian situation. Finally, the article briefly explains how asset prices are taken into account in the monetary policy strategy of the Eurosystem.monetary policy, transmission process, stock prices, residential property prices, Eurosystem

Universality of ac-conduction in anisotropic disordered systems: An effective medium approximation study

Anisotropic disordered system are studied in this work within the random barrier model. In such systems the transition probabilities in different directions have different probability density functions. The frequency-dependent conductivity at low temperatures is obtained using an effective medium approximation. It is shown that the isotropic universal ac-conduction law, $\sigma \ln \sigma=u$, is recovered if properly scaled conductivity ($\sigma$) and frequency ($u$) variables are used.Comment: 5 pages, no figures, final form (with corrected equations

Involvement of the hypothalamic-pituitary-thyroid axis and its interaction with the hypothalamic-pituitary-adrenal axis in the ontogeny of avian thermoregulation: a review

The emergence of thermoregulation in avian species is a complex matter in which neural as well as hormonal processes are involved. In a previous paper, the neural aspects of primary avian thermoregulation were discussed. In this paper the role of the hypothalamus-pituitary-thyroid axis (HPT-axis) and the hypothalamus-pituitary-adrenal axis (HPA-axis) in the ontogeny of avian thermoregulation is evaluated. The regulatory mechanisms and different important hormones of both axes, which have stimulatory or inhibitory effects, are discussed. Because the onset of functionality of the thermoregulatory system is of great interest, the ontogeny and functionality of the hormonal axes are clarified. There is a great difference between precocial and altricial birds in hormonal events as well as in neural processes which are involved in the emergence of thermoregulation. In precocial avian species the HPT-axis becomes functional during the mid- to late embryonic period while the same axis only becomes fully functional during the first week post-hatch in altricial avian species. As early as the sixties, the emergence of homeothermy in chickens was investigated. It was concluded that the thyroid gland plays an important role in the thermoregulatory mechanisms of newly hatched chicks. More recent studies however were not able to show any direct effect of the thyroid hormones on the thermoregulation of day-old chicks, although blocking the conversion of T4 to T3 caused a decrease in body temperature in young chicks. Thyrotropin releasing hormone (TRH) is known to act in thermoregulation in mammals and several authors have found an effect of TRH on the metabolism of young and older chicks. However, the exact mechanism still remains unclear. Because the HPT- and the HPA-axis show close relationships, the role of the HPA-axis in the ontogeny of thermoregulation is also taken into consideration in this review. In mammals as well as in birds, corticotropin releasing hormone (CRH) is involved in the primary thermoregulation. We conclude that the HPT-axis has an important role in the ontogeny of avian thermoregulation. The exact role of the HPA-axis remains largely unclear although at least CRH is definitely of some importance

A Superlens Based on Metal-Dielectric Composites

Pure noble metals are typically considered to be the materials of choice for a near-field superlens that allows subwavelength resolution by recovering both propagating and evanescent waves. However, a superlens based on bulk metal can operate only at a single frequency for a given dielectric host. In this Letter, it is shown that a composite metal-dielectric film, with an appropriate metal filling factor, can operate at practically any desired wavelength in the visible and near-infrared ranges. Theoretical analysis and simulations verify the feasibility of the proposed lens.Comment: 15 pages, 4 figure

Signatures of superconducting gap inhomogeneities in optical properties

Scanning tunneling spectroscopy applied to the high-$T_{c}$ cuprates has revealed significant spatial inhomogeneity on the nanoscale. Regions on the order of a coherence length in size show variations of the magnitude of the superconducting gap of order $\pm20$ or more. An important unresolved question is whether or not these variations are also present in the bulk, and how they influence superconducting properties. As many theories and data analyses for high-$T_{c}$ superconductivity assume spatial homogeneity of the gap magnitude, this is a pressing question. We consider the far-infrared optical conductivity and evaluate, within an effective medium approximation, what signatures of spatial variations in gap magnitude are present in various optical quantities. In addition to the case of d-wave superconductivity, relevant to the high-$T_c$ cuprates, we have also considered s-wave gap symmetry in order to provide expected signatures of inhomogeneities for superconductors in general. While signatures of gap inhomogeneities can be strongly manifested in s-wave superconductors, we find that the far-infrared optical conductivity in d-wave is robust against such inhomogeneity.Comment: 8 pages, 7 figure

Superfluid Inhomogeneity and Microwave Absorption in Model High-T_c Superconductors

We investigate the microwave absorption arising from inhomogeneity in the superfluid density of a model high-T_c superconductor. Such inhomogeneities may arise from a wide variety of sources, including quenched random disorder and static charge density waves such as stripes. We show that both mechanisms will inevitably produce additional absorption at finite frequencies. We present simple model calculations for this extra absorption, and discuss applications to other transport properties in high-T_c materials. Finally, we discuss the connection of these predictions to recent measurements by Corson et al. of absorption by the high-temperature superconductor BSCCO in the THz frequency regime.Comment: Presented at ETOPIM-6; latex file requires espcrc2.st

Spectral Representation for the Effective Macroscopic Response of a Polycrystal: Application to Third-Order Nonlinear Susceptibility

Erratum: In our paper, we show that the spectral representation for isotropic two-component composites also applies to uniaxial polycrystals. We have learned that this result was, in fact, first conjectured by G.W. Milton. While our derivation is more detailed, our result for the spectral function is the same as Milton's. We very much regret not having been aware of this work at the time of writing our paper. Original abstract: We extend the spectral theory used for the calculation of the effective linear response functions of composites to the case of a polycrystalline material with uniaxially anisotropic microscopic symmetry. As an application, we combine these results with a nonlinear decoupling approximation as modified by Ma et al., to calculate the third-order nonlinear optical susceptibility of a uniaxial polycrystal, assuming that the effective dielectric function of the polycrystal can be calculated within the effective-medium approximation.Comment: v2 includes erratum and the original preprin