Abstract
We identify the self-similarity limit of the second flow of sl(N) mKdV hierarchy with the periodic dressing chain thus establishing a connection to invariant Painlevé equations. The Bäcklund symmetries of dressing equations and Painlevé equations are obtained in the self-similarity limit of gauge transformations of the mKdV hierarchy realized as zero-curvature equations on the loop algebra endowed with a principal gradation.
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