750 research outputs found
The Euro and International Capital Markets
No full textcurrency; economic integration; EMU; Euro; European Central Bank; political economy
On prosperity and posterity: the need for fiscal discipline in a monetary union
No full textWe show how in a Blanchard-Yaari, overlapping generations framework, perfect substitutability of government bonds in Monetary Union tempts governments to exploit the enlarged common pool of savings. In Nash equilibrium all governments increase their bond financed transfers to current generations (prosperity effect) at the expense of future generations (posterity effect). The resulting deficit bias occurs even if one assumes that before Monetary Union countries had eliminated their deficit bias by designing appropriate domestic institutions. The paper provides a rationale for an increased focus on fiscal discipline in Monetary Union, without the need to assume imperfect credibility of existing Treaty provisions or to refer to extreme situations involving sovereign default. We draw on existing empirical evidence to argue that the degree of government bond substitutability within the European Monetary Union is an order of magnitude larger than in the global economy. JEL Classification: D62, E61, E63bond market integration, common pool, European Monetary Union, fiscal discipline, fiscal rules, fiscal spillover effects, overlapping generations
Fiscal policy effectiveness and neutrality results in a non-Ricardian world
No full textThe paper introduces monetary and fiscal regimes into a Blanchard-Weil overlapping generations model. Contrary to intuition, it is shown that fiscal policy becomes more effective, the less the central bank monetises government debt. Furthermore, there is a degree of debt monetisation at which Ricardian equivalence seems to hold in this 'non-Ricardian' model, as fiscal policy is neutral with respect to agent's net wealth. At the origin of these results are the opposite intergenerational wealth effects of money and debt financing. Since, on average, central bank independence increased through EMU, the analysis suggests that fiscal policy might have become a more powerful instrument for euro-area countries. It is further argued that given the Stability and Growth Pact, governments will find it wise to run budget positions 'close to balance or in surplus' in order to maintain the increased fiscal policy effectiveness. JEL Classification: E63fiscal policy effectiveness
Correction to: When terminology hinders research: the colloquialisms of transitions of control in automated driving (Cognition, Technology & Work, (2022), 10.1007/s10111-022-00705-3)
No full textIn the original article, author affiliation published with error. The correct affiliations are: Davide Maggi—Institute for Transport Studies, Leeds, UK. Richard Romano—Institute for Transport Studies, Leeds, UK. Oliver Carsten—Institute for Transport Studies, Leeds, UK. Joost C. F. De Winter—Faculty of Mechanical, Maritime and Materials Engineering, Delft University of Technology, Delft, The Netherlands. The original article has been corrected.Human-Robot Interactio
Maintaining price stability under free-floating: a fearless way out of the corner?
No full textThe behaviour of the exchange rate under a floating exchange rate regime for a small open economy with perfect capital mobility may appear like a managed float or even a firmer peg. We present a canonical new neo-classical synthesis open economy model where the central bank follows a strategy directed at maintaining price stability. It is shown that the behaviour of the exchange rate depends on the structure of the economy and on the nature of the relevant shocks. In the case of very open economies the exchange rate will look quasi-fixed in response to shocks stemming from the international capital markets. It is also shown that the joined endogeneity of the interest rate and the exchange rate has important implications for the empirical testing of uncovered interest rate parity. JEL Classification: E58, E63, F41flexible exchange rates, managed floating, price stability, small open economy, uncovered interest rate parity
Liquidity shocks and asset price boom/bust cycles
No full textWe provide systematic evidence for the association of liquidity shocks and aggregate asset prices during mechanically identified asset price boom/bust episodes for 18 OECD countries since the 1970s, while taking care of the endogeneity of money and credit. Our derivation of liquidity shocks allows for frequent shifts in velocity as they are derived as structural shocks from VARs in growth rates. Residential property price developments and money growth shocks accumulated over the boom periods are able to well explain the depth of post-boom recessions. We further suggest that liquidity shocks are a driving factor for real estate prices during boom episodes. During normal times however, the relative predictive power of liquidity shocks seems to shift from asset price inflation to consumer price inflation. The results only hold for broad money growth based liquidity shocks and not for private credit growth shocks. JEL Classification: C33, E41, E51, E58asset price booms, Liquidity shocks, monetary policy, money and credit aggregates, real estate prices, role of money
Theodor Storm's novelle ''Carsten Curator': An evaluation of the terms "Befreiungsdichtung" and "das Peinliche".
No full textThis thesis undertakes an analysis of two interrelated aspects of Theodor Storm's later prose writing. The Novelle Carsten Curator (1877) has been selected since this work constitutes the most significant example of both "Befreiungsdichtung" and "das Peinliche". A definition of "Befreiungsdichtung" - the artistic projection of personal experience as an act of 'self-liberation' - and the way this is revealed in a series of earlier works is the subject of the first chapter. The following three chapters offer a study of the genesis of Carsten Curator and show by an investigation into Storm's relationship with his eldest son (Chapter 2) the extent of the autobiographical content in the Novelle (Chapter 4) and Storm's awareness of its 'confessional' nature while writing it (Chapter 3). The second part of the thesis concerns itself with artistic problems which thereby arose for Storm. The creative process conditioned Storm's treatment of the thematic complex of heredity, alcoholism and paternal responsibility in Carsten Curator and brought with it a degree of realism which the author and his more sensitive critics found 'unpoetic' and thus 'offensive' (Chapter 5). This constitutes "das Peinliche", which Storm believed detracted from the 'tragic' nature of the central conflict. The following two chapters assess Carsten Curator in the light of Storm's theoretical definitions of "das Tragische" and draw the conclusion that the Novelle is a prime example of his mature tragic art. Chapter 8 discusses the implications of "das Peinliche" for a study of Storm's later Novellen (1877 - 1888), including the development of his realism, the effects of literary censorship on his later treatment of the central themes of Carsten Curator and his knowledge of Naturalist literature, showing the absence of any direct influence where these themes are concerned. The thesis concludes that Storm's continuing preoccupation with the themes of Carsten Curator after 1877 can be attributed only to their 'confessional' nature
Corrigendum: Towards an understanding of global brain data governance: ethical positions that underpin global brain data governance discourse
No full textIn the published article, there was an error in the author list arrangement, the corrected author list appears below. Paschal Ochang1*, Damian Eke1 and Bernd Carsten Stahl1,2 The authors apologize for this error and state that this does not change the scientific conclusions of the article in any way. The original article has been updated
Naturalizing institutions: Evolutionary principles and application on the case of money
No full textIn recent extensions of the Darwinian paradigm into economics, the replicator-interactor duality looms large. I propose a strictly naturalistic approach to this duality in the context of the theory of institutions, which means that its use is seen as being always and necessarily dependent on identifying a physical realization. I introduce a general framework for the analysis of institutions, which synthesizes Searle's and Aoki's theories, especially with regard to the role of public representations (signs) in the coordination of actions, and the function of cognitive processes that underly rule-following as a behavioral disposition. This allows to conceive institutions as causal circuits that connect the population-level dynamics of interactions with cognitive phenomena on the individual level. Those cognitive phenomena ultimately root in neuronal structures. So, I draw on a critical restatement of the concept of the meme by Aunger to propose a new conceptualization of the replicator in the context of institutions, namely, the replicator is a causal conjunction between signs and neuronal structures which undergirds the dispositions that generate rule-following actions. Signs, in turn, are outcomes of population-level interactions. I apply this framework on the case of money, analyzing the emotions that go along with the use of money, and presenting a stylized account of the emergence of money in terms of the naturalized Searle-Aoki model. In this view, money is a neuronally anchored metaphor for emotions relating with social exchange and reciprocity. Money as a meme is physically realized in a replicator which is a causal conjunction of money artefacts and money emotions. --Generalized Darwinism,institutions,replicator/interactor,Searle,Aoki,naturalism,memes,emotions,money
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