Optimal Monetary Policy Rules Under Inflation Range Targeting

We calculate and compare optimal monetary policy (MP) rules for a simple economy under alternative central bank objective (loss) functions. We compare both soft- and hard-edges range (zone) targeting as well as asymmetric loss-functions to a quadratic loss case. The latter represents the standard loss-function for point inflation targeting. The results show that MP aggressiveness under range targeting critically depends on how hard are the edges of this range. If a range is thought of as a thick point objective, MP is always active (there are no inaction zones), although it is less aggressive against inflation and output shocks if range edges are sufficiently soft (vis-à-vis a point target). Harder edges makes MP more aggressive even when the economy is close to the central part of the range. Finally, an asymmetric loss-function for inflation that penalizes positive deviations relatively more generates a bias against output.

Optimal Monetary Policy Rules when the Current Account Matters

This paper explores the implications for optimal monetary policy rules of including a target for the current account (CA) among central bank (CB) objectives. Using a simple but realistic macroeconomic model of the Chilean economy and standard dynamic programming with forward looking variables, the paper finds optimal rules under alternative specifications of a CB quadratic loss-function. The results show that optimal policy reactions change substantially when there is an objective for the CA (besides inflation). Furthermore, once the CA enters the CB objective function, the relative importance of output vis-à-vis inflation variability is less crucial in determining optimal policy rules. Using a simple 2-equation model, the paper then investigates the implications for monetary policy of having an asymmetric objective with respect to the CA. Specifically, it considers the case in which negative deviations from target are considered to be relatively more costly. The results indicate that, in this non-quadratic set-up, monetary policy is clearly more aggressive against positive inflation shocks than in the symmetric case.

New Keynesian Models For Chile During the Inflation Targeting Regime: A Structural Approach

Knowing the frictions that are present in the economy is a key step towards the efficient design of policy actions. In particular, price and wage rigidities determine the degree of tradeoff between output and inflation stabilization that central banks face. In this context, the main purpose of this paper is to determine the importance of nominal and real rigidities in the Chilean economy. In doing so, we derive and estimate a dynamic stochastic general equilibrium (DSGE) model for the Chilean economy. We find that several rigidities are present in the Chilean economy and, in particular, that. the degree of wage stickiness is higher than that of prices. Furthermore, imperfect passthrough from exchange rate to import prices is an important feature of the Chilean economy. The subsample analysis suggests that some rigidities and policy reactions may have changed. Those changes maybe related to more a more credible monetary policy.

On Verifying Resource Contracts using Code Contracts

In this paper we present an approach to check resource consumption contracts using an off-the-shelf static analyzer. We propose a set of annotations to support resource usage specifications, in particular, dynamic memory consumption constraints. Since dynamic memory may be recycled by a memory manager, the consumption of this resource is not monotone. The specification language can express both memory consumption and lifetime properties in a modular fashion. We develop a proof-of-concept implementation by extending Code Contracts' specification language. To verify the correctness of these annotations we rely on the Code Contracts static verifier and a points-to analysis. We also briefly discuss possible extensions of our approach to deal with non-linear expressions.Comment: In Proceedings LAFM 2013, arXiv:1401.056

Quantum reservoir computing in finite dimensions

Most existing results in the analysis of quantum reservoir computing (QRC) systems with classical inputs have been obtained using the density matrix formalism. This paper shows that alternative representations can provide better insights when dealing with design and assessment questions. More explicitly, system isomorphisms are established that unify the density matrix approach to QRC with the representation in the space of observables using Bloch vectors associated with Gell-Mann bases. It is shown that these vector representations yield state-affine systems (SAS) previously introduced in the classical reservoir computing literature and for which numerous theoretical results have been established. This connection is used to show that various statements in relation to the fading memory (FMP) and the echo state (ESP) properties are independent of the representation, and also to shed some light on fundamental questions in QRC theory in finite dimensions. In particular, a necessary and sufficient condition for the ESP and FMP to hold is formulated using standard hypotheses, and contractive quantum channels that have exclusively trivial semi-infinite solutions are characterized in terms of the existence of input-independent fixed points.Comment: 19 pages, 4 figure

Temporal and spatial expression of genes involved in DNA methylation during reproductive development of sexual and apomictic Eragrostis curvula

Recent reports in model plant species have highlighted a role for DNA methylation pathways in the regulation of the somatic-to-reproductive transition in the ovule, suggesting that apomixis (asexual reproduction through seeds) likely relies on RdDM downregulation. Our aim was therefore to explore this hypothesis by characterizing genes involved in DNA methylation in the apomictic grass Eragrostis curvula. We explored floral transcriptomes to identify homologs of three candidate genes, for which mutations in Arabidopsis and maize mimic apomixis (AtAGO9/ZmAGO104, AtCMT3/ZmDMT102/ZmDMT105, and AtDDM1/ZmCHR106), and compared both their spatial and temporal expression patterns during reproduction in sexual and apomictic genotypes. Quantitative expression analyses revealed contrasting expression patterns for the three genes in apomictic vs sexual plants. In situ hybridization corroborated these results for two candidates, EcAGO104 and EcDMT102, and revealed an unexpected ectopic pattern for the AGO gene during germ line differentiation in apomicts. Although our data partially support previous results obtained in sexual plant models, they suggest that rather than an RdDM breakdown in the ovule, altered localization of AtAGO9/ZmAGO104 expression is required for achieving diplospory in E. curvula. The differences in the RdDM machinery acquired during plant evolution might have promoted the emergence of the numerous apomictic paths observed in plants.Fil: Selva, Juan Pablo. Consejo Nacional de Investigaciones Científicas y Técnicas. Centro Científico Tecnológico Conicet - Bahía Blanca. Centro de Recursos Naturales Renovables de la Zona Semiárida. Universidad Nacional del Sur. Centro de Recursos Naturales Renovables de la Zona Semiárida; Argentina. Universidad Nacional del Sur. Departamento de Biología, Bioquímica y Farmacia; ArgentinaFil: Siena, Lorena Adelina. Consejo Nacional de Investigaciones Científicas y Técnicas. Centro Científico Tecnológico Conicet - Rosario. Instituto de Investigaciones en Ciencias Agrarias de Rosario. Universidad Nacional de Rosario. Facultad de Ciencias Agrarias. Instituto de Investigaciones en Ciencias Agrarias de Rosario; ArgentinaFil: Rodrigo, Juan Manuel. Consejo Nacional de Investigaciones Científicas y Técnicas. Centro Científico Tecnológico Conicet - Bahía Blanca. Centro de Recursos Naturales Renovables de la Zona Semiárida. Universidad Nacional del Sur. Centro de Recursos Naturales Renovables de la Zona Semiárida; Argentina. Universidad Nacional del Sur. Departamento de Agronomía; ArgentinaFil: Garbus, Ingrid. Consejo Nacional de Investigaciones Científicas y Técnicas. Centro Científico Tecnológico Conicet - Bahía Blanca. Centro de Recursos Naturales Renovables de la Zona Semiárida. Universidad Nacional del Sur. Centro de Recursos Naturales Renovables de la Zona Semiárida; Argentina. Universidad Nacional del Sur. Departamento de Ciencias de la Salud; ArgentinaFil: Zappacosta, Diego Carlos. Consejo Nacional de Investigaciones Científicas y Técnicas. Centro Científico Tecnológico Conicet - Bahía Blanca. Centro de Recursos Naturales Renovables de la Zona Semiárida. Universidad Nacional del Sur. Centro de Recursos Naturales Renovables de la Zona Semiárida; Argentina. Universidad Nacional del Sur. Departamento de Agronomía; ArgentinaFil: Romero, José Rodolfo. Consejo Nacional de Investigaciones Científicas y Técnicas. Centro Científico Tecnológico Conicet - Bahía Blanca. Centro de Recursos Naturales Renovables de la Zona Semiárida. Universidad Nacional del Sur. Centro de Recursos Naturales Renovables de la Zona Semiárida; ArgentinaFil: Ortiz, Juan Pablo Amelio. Consejo Nacional de Investigaciones Científicas y Técnicas. Centro Científico Tecnológico Conicet - Rosario. Instituto de Investigaciones en Ciencias Agrarias de Rosario. Universidad Nacional de Rosario. Facultad de Ciencias Agrarias. Instituto de Investigaciones en Ciencias Agrarias de Rosario; ArgentinaFil: Pessino, Silvina Claudia. Consejo Nacional de Investigaciones Científicas y Técnicas. Centro Científico Tecnológico Conicet - Rosario. Instituto de Investigaciones en Ciencias Agrarias de Rosario. Universidad Nacional de Rosario. Facultad de Ciencias Agrarias. Instituto de Investigaciones en Ciencias Agrarias de Rosario; ArgentinaFil: Leblanc, O.. Universidad de Montpellier; AlemaniaFil: Echenique, Carmen Viviana. Consejo Nacional de Investigaciones Científicas y Técnicas. Centro Científico Tecnológico Conicet - Bahía Blanca. Centro de Recursos Naturales Renovables de la Zona Semiárida. Universidad Nacional del Sur. Centro de Recursos Naturales Renovables de la Zona Semiárida; Argentina. Universidad Nacional del Sur. Departamento de Agronomía; Argentin

NEW KEYNESIAN MODELS FOR CHILE DURING THE INFLATION TARGETING REGIME: A STRUCTURAL APPROACH

Knowing the frictions that are present in the economy is a key step towards the efficient design of policy actions. In particular, price and wage rigidities determine the degree of tradeoff between output and inflation stabilization that central banks face. In this context, the main purpose of this paper is to determine the importance of nominal and real rigidities in the Chilean economy. In doing so, we derive and estimate a dynamic stochastic general equilibrium (DSGE) model for the Chilean economy. We find that several rigidities are present in the Chilean economy and, in particular, that the degree of wage stickiness is higher than that of prices. Furthermore, imperfect passthrough from exchange rate to import prices is an important feature of the Chilean economy. The subsample analysis suggests that some rigidities and policy reactions may have changed. Those changes may be related to a more credible monetary policy.