Liquidity Risk, Economic Development, and the Effects of Monetary Policy

Empirical evidence indicates that monetary policy is not super-neutral in many countries. In particular, in high in?ation economies, in?ation is negatively related to economic activity. By comparison, in?ation may be positively correlated with output in low in?ation countries. We present a neoclassical growth model with money in which the incidence of liquid- ity risk is inversely related to aggregate capital formation. Interestingly, there may be multiple monetary steady-states where the e¤ects of mon- etary policy vary. In poor economies, the ?nancial system is highly dis- torted and higher rates of money growth are associated with less capital formation. In contrast, in advanced economies, a Tobin e¤ect is observed. Since in?ation exacerbates distortions from a coordination failure in the low capital steady-state, individuals become much more exposed to liq- uidity risk. Consequently, optimal monetary policy depends on the level of development.Economic Development, Banks, Monetary Policy

The Stock Market, Monetary Policy, and Economic Development

In this paper, we examine the impact of financial market development on capital accumulation and inflation. In particular, we explore this issue in a setting in which banks provide risk pooling services. Furthermore, money overcomes incomplete information to facilitate transactions between individuals. In contrast to previous work, we incorporate a market for equity by allowing individuals to trade capital across generations. Interestingly, we find that the quantitative impact of the stock market may be indeterminate — the economy may respond with significant gains in capital accumulation or relatively little. Consequently, it is not clear how much financial development will drive down inflation in the longrun. In the case of unique steady-states, expansionary monetary policy causes long-run capital accumulation to fall. However, the response is much stronger in the presence of a stock market. Furthermore, the market for capital may lead to a different qualitative response to monetary policy. That is, financial development may lead to a Tobin effect from inflation. Finally, by studying dynamics, we demonstrate that financial markets and monetary policy can have a significant impact on volatility in the economy. In this manner, there is additional scope for monetary policy to stabilize the economy at higher levels of financial development.Monetary Policy, Stock Market, Economic Development

THE COST OF CAPITAL, ASSET PRICES AND THE AFFECTS OF MONETARY POLICY

The primary objective of this paper is to study the interaction between mon- etary policy, asset prices, and the sources of technological progress. We develop a two sector model in which ?nancial institutions promote risk sharing and ?at money alleviates trade frictions. Since the price of capital goods depends on in- ?ation, the Friedman Rule may be sub-optimal. In addition, di¤erent sources of productivity can a¤ect the degree of risk sharing. Although the optimal money growth rate falls in response to an increase in productivity in either sector of the economy, monetary policy should react more aggressively to investment-speci?c productivity. Our results are broadly consistent with U.S. monetary policy dur- ing the postwar period.Asset Prices, Investment, Monetary Policy

The Role of Financial Sector Competition for Monetary Policy

In this paper, we examine the impact of competition in the banking industry on ?nancial market activity. In particular, we explore this issue in a setting where banks simultaneously insure individuals against liquid- ity risk and o¤er loans to promote intertemporal consumption smoothing. In addition, spatial separation and private information generate a trans- actions role for money. Interestingly, we demonstrate that the industrial organization of the ?nancial system bears signi?cant implications for the e¤ects of monetary policy. Under perfect competition, higher rates of money growth lead to lower interest rates and a higher volume of lending activity. In contrast, in a monopoly banking sector, money growth restricts the availability of funds and raises the cost of borrowing.Monetary Policy, Financial Sector Concentration, Price Competition

RSM 1.0 user's guide: A resupply scheduler using integer optimization

The Resupply Scheduling Model (RSM) is a PC based, fully menu-driven computer program. It uses integer programming techniques to determine an optimum schedule to replace components on or before a fixed replacement period, subject to user defined constraints such as transportation mass and volume limits or available repair crew time. Principal input for RSJ includes properties such as mass and volume and an assembly sequence. Resource constraints are entered for each period corresponding to the component properties. Though written to analyze the electrical power system on the Space Station Freedom, RSM is quite general and can be used to model the resupply of almost any system subject to user defined resource constraints. Presented here is a step by step procedure for preparing the input, performing the analysis, and interpreting the results. Instructions for installing the program and information on the algorithms are given

High-Elevation Draba (Cruciferae) of the White Mountains of California and Nevada

Accurate identification of the species of Draba at high elevations in the White Mountains of eastern California and adjacent Nevada has been impossible because of frequent misinterpretations in the literature and the lack of a coherent source of information. A preliminary investigation of newly collected material suggested that several species of Draba, endemic or nearly so to these mountains, had not been recognized. Descriptions and relevant comparisons are given for a new combination, D. californica, and two new species, D. monoensis and D. subumbellata. Specimen citations for all taxa of Draba occurring at high elevations, roughly above 3000 m, are provided as a basis for our taxonomic decisions and to aid others in the interpretation of the taxonomy of the genus as it occurs in the White Mountains

Improved Perioperative Antibiotic Use and Reduced Surgical Wound Infection Through Use of Computer Decision Analysis

journal articleBiomedical Informatic

Character education in Portugal

Around the world, children who can exercise their right to attend school spend a significant part of their lives within the education environment. Therefore, schools have a great deal of influence on children’s development beyond the academic realm. Given this accessibility to children, schools have opportunities to help children develop positive character traits. Each community must determine what role schools will play in providing character education and what content would be delivered through character education programs. This article explores these issues associated with character education within Portugal, including who should be responsible for providing character education and how it can best be transmitted.(undefined