Financial Shocks and Optimal Policy

This paper incorporates banks as well as frictions in the market for bank capital into a standard New Keynesian model and considers the positive and normative implications of various financial shocks. It shows that the frictions matter significantly for the effects of the shocks and the properties of optimal monetary and fiscal policy. For instance, for shocks that increase banks' demand for liquidity, optimal monetary policy accepts an output contraction while it would not in the absence of the frictions (or under suitably conducted fiscal policy). We find that optimal monetary policy can be approximated by a simple interest-rate rule targeting inflation; and it also allows large adjustments in the money supply, a property reminiscent of Poole's analysis.Financial frictions, banking, optimal policy

The future of monetary policy Summary of the conference held in Rome on 30 September and 1 October 2010.

The recent economic and financial crisis does not call for a change in monetary policy strategy, but rather better integration of financial conditions and financial-crisis risks in the implementation of this strategy: this appears to be the main conclusion of a conference organised by the Banque de France, the Banca d’Italia and the Einaudi Institute.asset price bubbles, financial crisis, interbank market, macroprudential policy, monetary policy.

Le futur de la politique monétaire : synthèse de la conférence tenue à Rome le 30 septembre et le 1er octobre 2010.

La récente crise économique et fi nancière appelle non pas une modification de la stratégie de politique monétaire, mais une meilleure prise en compte des conditions financières et du risque de crise fi nancière dans la mise en oeuvre de cette stratégie : telle semble être la principale conclusion d’un colloque organisé par la Banque de France, la Banque d’Italie et l’institut Einaudi.Bulles de prix d’actif, crise financière, marché interbancaire, politique macroprudentielle, politique monétaire.

How physicians caring for adult patients presenting a chronic mental disturbance take account of the difficulties their patients’ children under 18: Preliminary study

AbstractAimsTo study how physicians caring for adult patients presenting a chronic mental disturbance take account of the difficulties of their patients’ children under 18.MethodExploratory and qualitative study based on an in-depth study of interviews.Study populationThirteen physiatrists or neurologists following brain-damaged patients and 12 psychiatrists following patients with chronic psychiatric disorders.ResultsIn the two groups of physicians, diversified practices in catering for the issues of the patient's parenthood, child–parent relationships, and difficulties experienced by the child. The child's difficulties are not approached as such. For many of the physicians, representations of the parenting function, and of the child's needs and difficulties are not often used in work with the patient. Patient-centred care appears at odds with catering for the patient's children and their specific difficulties. The seriousness of the mental pathologies, their chronic nature, and the fact that they can affect the patient in his/her parental functioning and concerns, appear as factors in the reluctance of physicians. Other reasons are lack of familiarity with issues relating to childhood, and the feeling of encroaching on a private and intimate sphere. The representations of physicians with regard to parenthood, parent–child relations, and the needs and difficulties of children, are often not integrated into the corpus of knowledge. These issues are more often aspects of physicians’ own experience.ConclusionThe conflict of values and the uneasiness of the physicians suggest the need for ethical reflection groups or Balint groups

The Force-Velocity Relation for Growing Biopolymers

The process of force generation by the growth of biopolymers is simulated via a Langevin-dynamics approach. The interaction forces are taken to have simple forms that favor the growth of straight fibers from solution. The force-velocity relation is obtained from the simulations for two versions of the monomer-monomer force field. It is found that the growth rate drops off more rapidly with applied force than expected from the simplest theories based on thermal motion of the obstacle. The discrepancies amount to a factor of three or more when the applied force exceeds 2.5kT/a, where a is the step size for the polymer growth. These results are explained on the basis of restricted diffusion of monomers near the fiber tip. It is also found that the mobility of the obstacle has little effect on the growth rate, over a broad range.Comment: Latex source, 9 postscript figures, uses psfig.st