Interest rate policy and supply-side adjustment dynamics

In contrast to the present consensus view of stabilization policy, theoretical and empirical research strongly support the consideration of supply-side adjustment to pronounced variations of factor-utilization in order to trace a more realistic pattern of macroeconomic adjustment dynamics within simulation studies. Against this background, our paper seeks to illuminate the relevance of endogenous supply-side adjustment for monetary policy research. We modify a basic New Keynesian model by explicitly considering demand-side stimulus on the evolution of productive capacity and analyze stability, impulse response, and welfare issues if the central bank follows a simple monetary policy rule. Thereby, we control for the robustness of our policy implications by various states of output gap mismeasurement the central bank might be confronted with. We find that, in contrast to a basic New Keynesian Model, output gap stabilization plays a more prominent role when potential output is endogenous

Monetary Policy and Hysteresis in Potential Output

We show that actively stabilizing economic activity plays a more prominent role in the conduct of monetary policy when potential output is subject to hysteresis. We augment a basic New Keynesian model by hysteresis in potential output and contrast simulation outcomes of this extended model to the standard model. We find that considering hysteresis allows for a more realistic propagation of macroeconomic shocks and persistent movements in output after monetary shocks. Our central policy implication of active output gap stabilization arises from stability analyses and welfare considerations

Unit cell of a Penning micro-trap quantum processor

Trapped ions in radio-frequency traps are among the leading approaches for realizing quantum computers, due to high-fidelity quantum gates and long coherence times. However, the use of radio-frequencies presents a number of challenges to scaling, including requiring compatibility of chips with high voltages, managing power dissipation and restricting transport and placement of ions. By replacing the radio-frequency field with a 3 T magnetic field, we here realize a micro-fabricated Penning ion trap which removes these restrictions. We demonstrate full quantum control of an ion in this setting, as well as the ability to transport the ion arbitrarily in the trapping plane above the chip. This unique feature of the Penning micro-trap approach opens up a modification of the Quantum CCD architecture with improved connectivity and flexibility, facilitating the realization of large-scale trapped-ion quantum computing, quantum simulation and quantum sensing

Individual differences in susceptibility to financial bullshit

What is the effect of seemingly impressive verbal financial assertions that are presented as true and meaningful but are actually meaningless; that is, financial pseudo-profound bullshit? We develop and validate a novel measurement scale to assess consumers ability to detect and distinguish financial bullshit. We show that this financial bullshit scale captures a unique construct that is only moderately correlated with related constructs such as financial knowledge, numeracy, and cognitive reflection. Consumers particular vulnerable to financial bullshit are more likely to be young, male, have a higher income, and be overconfident with regards to their own financial knowledge. The ability to detect and distinguish financial bullshit also predicts financial well-being while being less predictive of consumers self-reported financial behavior, suggesting that susceptibility to financial bullshit is linked to affective rather than behavioral reactions. Our findings have implications for the understanding of how financial communication impacts consumer decision making and financial well-being.Funding Agencies|Jan Wallander and Tom Hedelius Foundation, Sweden [W19-0018]Licensing: This is an open access article under the CC BY license (http://creativecommons.org/licenses/by/4.0/).</p