Competitive Exchange Research Articles

Keynes at the periphery: Currency hierarchy and challenges for economic policy in emerging economies

ABSTRACTWhile the post Keynesian literature offers a rather clear concept for growth-oriented policies, it is necessary to adapt them for peripheral emerging economies. We base our analysis of an appropriate Keynesian policy mix for these countries on the concept of currency hierarchy, where the currencies of peripheral emerging economies have a lower liquidity premium than the currencies of advanced economies. The international asymmetry related to the currency hierarchy, amplified by financial globalization, imposes major constraints to the adoption of Keynesian policies for these economies. Under these conditions, we argue that domestic economic policy coordination should lay a major focus on a low policy rate and, especially, a competitive exchange rate for obtaining, at least, a balanced current account, in order to prevent capital flows boom-bust-cycles with subsequent financial crises. We conclude that it is a rather ambitious and long-term goal to climb up the currency hierarchy, especially under the current condition of financial globalization.

Como sair do regime liberal de política econômica e da quase-estagnação desde 1990

Resumo O Brasil cresceu de maneira extraordinária entre 1930 e 1980 sob um regime desenvolvimentista de política econômica; está quase-estagnado desde 1990 sobe um regime liberal. Lula nada fez para mudá-lo; Dilma Rousseff tentou, em 2011, mas logo bateu em retirada. O liberalismo financeiro-rentista é incompatível com o crescimento, porque mantém juros elevadíssimos e câmbio apreciado no longo prazo, que inviabilizam a poupança pública e o investimento privado. Para sair da quase-estagnação, cinco pontos de um regime desenvolvimentista: regra fiscal responsável, juros moderados, câmbio competitivo, acordo social, impostos progressivos.

Saída para a crise tem mão dupla

Resumo A atual recessão preocupa, mas preocupa ainda mais o lento crescimento da economia brasileira há 35 anos. As causas são múltiplas, mas uma frequentemente ignorada é aqui enfatizada: a baixíssima participação do Brasil no comércio internacional. Propõe-se um programa de integração do país às cadeias produtivas internacionais, com base em três pilares: redução do custo Brasil, troca de tarifas por câmbio e acordos comerciais.

Geochemical characteristics, speciation and size-fractionation of iron (Fe) in two marine shallow-water hydrothermal systems, Dominica, Lesser Antilles

Marine shallow-water hydrothermal systems have so far largely been neglected with respect to trace metal fluxes and possible stabilizing complexation processes, even though they emit their fluids directly into the photic zone. The impact of stabilized dissolved metal input by shallow vents into surface waters as well as the effect on the transport and bioavailability of bioactive trace metals within the area of highest primary production rates in the world oceans is therefore, at present, mostly unknown.In this study, we investigated the concentration, size fraction distribution (colloidal and soluble) as well as redox speciation and labile concentrations of the limiting micronutrient iron (Fe) at two marine shallow-water hydrothermal systems (Champagne Hot Springs and Soufriere) off the coast of Dominica, Lesser Antilles Island Arc, Caribbean.Geochemical characterization of the two different vent sites showed that both are affected by meteoric and seawater influence, with a stronger meteoric influence at Soufriere than at Champagne Hot Springs. Measurements of soluble and labile Fe were performed using a modified competitive ligand exchange – adsorptive cathodic stripping voltammetry (CLE-AdCSV) with salicylaldoxime (SA) as the artificial ligand. Our results show that focused fluids discharging at the seafloor, as well as hydrothermal pore fluids are, despite a calculated theoretical oxidation half-life of only 6.4min, highly enriched in Fe(II), indicating a strong complexation of Fe(II), strong enough to prevent Fe(II) from oxidation and precipitation. Since these fluids show enriched dissolved organic carbon (DOC) concentrations, and very low fractions of chemically labile Fe, complexation may occur by organic carbon, which was recently suggested to also be a factor in stabilizing particulate Fe(II) in deep-sea hydrothermal non-buoyant plumes.Our results indicate that shallow-water hydrothermalism off the coast of Dominica releases high concentrations of stabilized, bioavailable Fe(II) into the photic zone, which influences the biogeochemical cycle of Fe in surface waters. Considering the abundance of marine shallow-water hydrothermal systems in many regions, such processes may even play a role in the global oceanic dFe cycle.

Predicting Copper Speciation in Estuarine Waters-Is Dissolved Organic Carbon a Good Proxy for the Presence of Organic Ligands?

A new generation of speciation-based aquatic environmental quality standards (EQS) for metals have been developed using models to predict the free metal ion concentration, the most ecologically relevant form, to set site-specific values. Some countries such as the U.K. have moved toward this approach by setting a new estuarine and marine water EQS for copper, based on an empirical relationship between copper toxicity to mussels (Mytilus sp.) and ambient dissolved organic carbon (DOC) concentrations. This assumes an inverse relationship between DOC and free copper ion concentration owing to complexation by predominantly organic ligands. At low DOC concentrations, the new EQS is more stringent, but above 162 μM DOC it is higher than the previous value. However, the relationship between DOC and copper speciation is poorly defined in estuarine waters. This research discusses the influence of DOC from different sources on copper speciation in estuaries and concludes that DOC is not necessarily an accurate predictor of copper speciation. Nevertheless, the determination of ligand strength and concentrations by Competitive Ligand Exchange Adsorptive Cathodic Stripping Voltammetry enabled the prediction of the free metal ion concentration within an order of magnitude for estuarine waters by using a readily available metal speciation model (Visual MINTEQ).

Multicomponent competitive monovalent cation exchange in hierarchical porous media with multimodal reactive mineral facies

This paper presents a stochastic model for multicomponent competitive monovalent cation exchange in hierarchical porous media. Reactive transport in porous media is highly sensitive to heterogeneities in physical and chemical properties, such as hydraulic conductivity (K), and cation exchange capacity (CEC). We use a conceptual model for multimodal reactive mineral facies and develop a Eulerian-based stochastic theory to analyze the transport of multiple cations in heterogeneous media with a hierarchical organization of reactive minerals. Numerical examples investigate the retardation factors and dispersivities in a chemical system made of three monovalent cations (Na+, K+, and Cs+). The results demonstrate how heterogeneity influences the transport of competitive monovalent cations, and highlight the importance of correlations between K and CEC. Further sensitivity analyses are presented investigating how the dispersion and retardation of each cation are affected by the means, variances, and integral scales of K and CEC. The volume fraction of organic matter is shown to be another important parameter. The Eulerian stochastic framework presented in this work clarifies the importance of each system parameters on the migration of cation plumes in formations with hierarchical organization of facies types. Our stochastic approach could be used as an alternative to numerical simulations for 3D reactive transport in hierarchical porous media, which become prohibitively expensive for the multicomponent applications considered in this work.

In search of stabilization and recovery: macro policy and reforms in Venezuela

ABSTRACTVenezuela is currently immersed in a severe economic crisis as a result of years of domestic mismanagement and the recent reversal in oil prices. This article attempts to formulate a proposal for stabilization and recovery that includes upfront key policy actions to deal with the drastic foreign exchange constraint. We consider the recovery of foreign currency liquidity to be of paramount importance. This will allow not only the lifting of exchange control and the implementation of a stable and competitive real exchange rate, but also the removal of shortages across the board and output recovery. The recovery of domestic activity will also require supply-side relief in the form of broad deregulation, institutional changes, and a sensible policy to lift price controls. To maintain a stable and competitive exchange rate, we propose a whole set of policy measures for rapid suppression of inflation and the causal mechanisms that have formed over the years. A monetary reform and the support of monetary and fiscal policy for successful stabilization and recovery efforts are also discussed.

Colombia’s macroeconomic challenges at the end of the supercycle of commodity prices

ABSTRACTThe end of the commodity boom presents major challenges for the Colombian economy. The major ones relate to the need to reduce the current account deficit and find new growth engines. A competitive real exchange rate is essential for objectives and requires stronger interventions in the foreign exchange market; these interventions also help to smooth out the trajectory of the inflation rate. Finally, although fiscal adjustment has been adequate, there are fiscal needs associated with the additional public sector spending demanded by the peace agreement and the need to correct the major structural tax imbalances generated by previous tax reforms.

Real exchange rate and export performance in Argentina, 2002–2008

ABSTRACTBetween 2002 and 2008, Argentina experienced a phase of very high and sustained economic growth. During this period, macroeconomic policy aimed to preserve a stable and competitive real exchange rate (SCRER). There is controversy on whether the SCRER policy was a key factor fostering growth and, even more, on whether it helped promote the expansion of tradable activities and exports. We use a methodology to detect episodes of export surges among Argentina’s export industries and find that labor-intensive industries—especially low- and medium-technology manufactures—experienced the highest proportion of export surges within this period. We also find that between 1980 and 2015, the highest proportion of surges in total exports occurred during the 2003–8 period. The performance of export of services was also particularly dynamic during this period. This evidence suggests that the SCRER policy was instrumental for export surges in Argentina during 2002–8.

Competitive multicomponent anion exchange adsorption of proteins at the single molecule level.

We use single molecule spectroscopy to study a multicomponent, competitive protein adsorption system. Fluorescently-labeled α-lactalbumin proteins are super-resolved adsorbing to cationic anion-exchange ligands in the presence of a competitor, insulin. We find that the competitor reduces the number of binding events by blocking ligands throughout the observed measurement time while the single-site adsorption kinetics are unchanged.

Competitive exchange of Cr (III) sorption on macroporous Amberlyst.15 (H)

In the present investigation, the kinetics of Cr (III), Al (III) and Ca (II) ions sorption onto macroporous Amberlyst.15 (H+) from an equimolar mixture of metal ions is studied at different temperatures (293–333 K). The equilibrium time for the competitive sorption is found to be dependent on the temperature in case of Cr (III) ions while independent for Ca (II) and Al (III) ion exchange. The exchange capacities are observed to follow the order: Ca (II) > Cr (III) > Al (III) in the mixed metal systems, which can be co-related with hydration energy of the corresponding cations. The kinetics data is analyzed by Boyd Film diffusion and simplified Reichenberg particle diffusion models. The kinetic and activation parameters have also been evaluated from Arrhenius and Eyring equations and their significance discussed. The values of activation energies for the competitive sorption are observed to be 16.61, 6.96 and 8.42 kJ mol−1 for Cr (III), Al (III) and Ca (II) respectively. The thermodynamic activation parameters indicated that the ion exchange mechanism of Cr (III), Al (III) and Ca (II) ions onto the Amberlyst.15 (H+) is entropy driven in nature.

Diel plant water use and competitive soil cation exchange interact to enhance NH4+ and K+ availability in the rhizosphere

AimsHydro-biogeochemical processes in the rhizosphere regulate nutrient and water availability, and thus ecosystem productivity. We hypothesized that two such processes often neglected in rhizosphere models — diel plant water use and competitive cation exchange — could interact to enhance availability of K+ and NH4+, both high-demand nutrients.MethodsA rhizosphere model with competitive cation exchange was used to investigate how diel plant water use (i.e., daytime transpiration coupled with no nighttime water use, with nighttime root water release, and with nighttime transpiration) affects competitive ion interactions and availability of K+ and NH4+.ResultsCompetitive cation exchange enabled low-demand cations that accumulate against roots (Ca2+, Mg2+, Na+) to desorb NH4+ and K+ from soil, generating non-monotonic dissolved concentration profiles (i.e. ‘hotspots’ 0.1–1 cm from the root). Cation accumulation and competitive desorption increased with net root water uptake. Daytime transpiration rate controlled diel variation in NH4+ and K+ aqueous mass, nighttime water use controlled spatial locations of ‘hotspots’, and day-to-night differences in water use controlled diel differences in ‘hotspot’ concentrations.ConclusionsDiel plant water use and competitive cation exchange enhanced NH4+ and K+ availability and influenced rhizosphere concentration dynamics. Demonstrated responses have implications for understanding rhizosphere nutrient cycling and plant nutrient uptake.

Turkey’s employment subsidy program under the great recession: a general equilibrium assessment

The objective of this paper is to provide an impact analysis of the macroeconomic consequences of the employment subsidization programs in Turkey implemented under the post-2008 crisis period. To this end, an applied general equilibrium model (of the computable general equilibrium – CGE variety) is utilized to investigate the production, incomes generation, and aggregate demand components of the domestic economy. The analysis highlights the rather limited returns to the subsidization package, and argues that much of this was due to the dis-equilibriating and fragile macroeconomic environment under the neoliberal policy framework. The massive drop of domestic savings; a severe mis-alignment in the real exchange rate causing significant appreciation of the domestic currency; rise of the external deficit and of foreign indebtedness along with a severe fall in the total productivity effort were different facets of this poor macroeconomic performance. Thus, an important message of the study is that, had the macroeconomic balances were maintained at their historical averages, and a more competitive exchange rate could have been pursued, as much as threefolds of a gain in aggregate employment could have been generated with the same intensity of the employment subsidization package, in comparison to the historically realized levels.

Exploitation, Domination, Competitive Markets, and Unfair Division

AbstractWhen the assertion that some agent is exploiting a person connotes that the exploitation is morally wrong, what is this wrong? Some maintain that exploitation need not involve unfair division of advantages, but instead is essentially domination for self‐enrichment. This essay denies this claim and upholds the idea that exploitation claims concern unfair distribution. Some maintain that the hypothetical fully competitive market exchange price can serve, at least in some contexts, as the standard for assessing whether voluntary interaction is exploitative. This essay denies that the idea of the fully competitive market price can serve in this role. Nor should we accept a pure luck egalitarian claim that would identify fair distribution with the outcome of ideally competitive markets proceeding from fair initial distribution.

A reconstrução da indústria brasileira: a conexão entre o regime macroeconômico e a política industrial

RESUMO: Este artigo, de cunho eminentemente analítico, mostra que no âmbito da política macroeconômica é necessária consistência entre as políticas monetária, fiscal, cambial e salarial para viabilizar taxas de juros reais médias inferiores às taxas de retorno médias sobre o capital, taxas de câmbio reais competitivas (em torno da taxa de "equilíbrio industrial") e taxas de salários que evoluam de acordo com o crescimento da produtividade, condições para que se assegure o crescimento econômico sobre bases sustentáveis. Já com respeito à política industrial é preciso perseguir estratégias de diversificação produtiva, notadamente no setor manufatureiro e nos segmentos tradable do setor de serviços, mediante a identificação de prioridades estratégicas tanto nas cadeias produtivas, segmentos e setores próximos à base de vantagem comparativa preexistente, como naqueles mais próximos à fronteira tecnológica internacional. Embora os argumentos analíticos favoreçam a estratégia de diversificação produtiva, esta não deve ser confundida com semi-autarquia, o que significa que as cadeias e setores que não sejam foco da política industrial devem ter alíquotas de importação zero ou próximas de zero.

Catching Up, Structural Transformation, and Inequality: Lessons from Asia

While structural transformation, driven by technological progress, productivity growth, and capital deepening, has contributed to Asia’s sustained rapid growth, its effect on income inequality is uncertain. The central objective of our paper is to empirically examine the effect of structural change on wage inequality in Asia, using industry-level data for three skill groups of workers. Our evidence indicates that structural change, pushed by productivity catch-up with advanced economies, capital deepness, and the shift of the economic structures to more skill-intensive industries, has exacerbated inequality in the region. However, we also find that policy responses, especially investment in education matching the higher demand for skills and competitive exchange rates, can mitigate the increase in inequality.

Competitive Exchange Rate and Public Infrastructure in a Macrodynamic of Economic Growth

ABSTRACTWe develop a dual open‐economy model which incorporates a flow of public infrastructure as a factor of production to investigate effects of a competitive exchange rate policy under different levels of provision of public infrastructure. It is suggested that an exchange rate policy coordinated with a public infrastructure policy should produce better results. By increasing productivity in the tradable sector and reducing inflationary pressures, this supply‐side public policy contributes to the success of an economic growth strategy led by a competitive currency.

Benchmarking the competitiveness of the ASEAN 5 equity markets

Purpose– The purpose of this paper is to study the competitiveness of the stock markets in ASEAN 5, which are the Stock Exchange of Thailand (SET), the Singapore Exchange (SGX), Bursa Malaysia (BM), the Indonesia Stock Exchange (IDX), and the Philippine Stock Exchange (PSE).Design/methodology/approach– This research applies Porter’s (1990) diamond model to analyze the competitiveness and the data were collected from World Economic Forum, International Institute for Management Development, the World Federation of Exchanges database, and DataStream.Findings– The results show that SGX is the most competitive exchange in ASEAN 5 region. It dominates other exchanges in every dimension. It gains its reputation for being the region’s most prominent exchange, followed by BM, SET, IDX, and the PSE, respectively.Practical implications– The results of this investigation provide rank for competitiveness of stock exchanges among ASEAN 5 and identify the way to improve its competitive position.Social implications– It is useful for public and private sectors involved in the development and policy making to promote funding and investment efficiency of the exchanges. It will be benefit to establish the well-planned development strategy and policy to build up the competitive advantage of the nations.Originality/value– Identifying and benchmarking the competitiveness of the stock markets in ASEAN economies. By using Diamond Model, the authors propose indicators to assess the competitiveness of the stock markets in ASEAN 5 countries. Assessing the competitiveness of the ASEAN stock markets in this paper will lead us to better understand about each country’s strengths and weaknesses and to promote a mutual collaboration among the region toward ASEAN Economic Community.

Voltammetric Investigation of Hydrothermal Iron Speciation

Hydrothermal vent fluids are highly enriched in iron (Fe) compared to ambient seawater, and organic ligands may play a role in facilitating the transport of some hydrothermal Fe into the open ocean. This is important since Fe is a limiting micronutrient for primary production in large parts of the world`s surface ocean. We have investigated the concentration and speciation of Fe in several vent fluid and plume samples from the Nifonea vent field, Coriolis Troughs, New Hebrides Island Arc, South Pacific Ocean using competitive ligand exchange - adsorptive cathodic stripping voltammetry (CLE - AdCSV) with salicylaldoxime (SA) as the artificial ligand. Our results for total dissolved Fe (dFe) in the buoyant hydrothermal plume samples showed concentrations up to 3.86 µM dFe with only a small fraction between 1.1% and 11.8% being chemically labile. Iron binding ligand concentrations ([L]) were found in µM level with strong conditional stability constants up to log K[L],Fe3+ of 22.9. Within the non-buoyant hydrothermal plume above the Nifonea vent field, up to 84.7% of the available Fe is chemically labile and [L] concentrations up to 97 nM were measured. [L] was consistently in excess of Felab, indicating that all available Fe is being complexed, which in combination with high Felab values in the non-buoyant plume, signifies that a high fraction of hydrothermal dFe is potentially being transported away from the plume into the surrounding waters, contributing to the global oceanic Fe budget.

Stability versus exchange: a paradox in DNA replication.

Multi-component biological machines, comprising individual proteins with specialized functions, perform a variety of essential processes in cells. Once assembled, most such complexes are considered very stable, retaining individual constituents as long as required. However, rapid and frequent exchange of individual factors in a range of critical cellular assemblies, including DNA replication machineries, DNA transcription regulators and flagellar motors, has recently been observed. The high stability of a multi-protein complex may appear mutually exclusive with rapid subunit exchange. Here, we describe a multisite competitive exchange mechanism, based on simultaneous binding of a protein to multiple low-affinity sites. It explains how a component can be stably integrated into a complex in the absence of competing factors, while able to rapidly exchange in the presence of competing proteins. We provide a mathematical model for the mechanism and give analytical expressions for the stability of a pre-formed complex, in the absence and presence of competitors. Using typical binding kinetic parameters, we show that the mechanism is operational under physically realistic conditions. Thus, high stability and rapid exchange within a complex can be reconciled and this framework can be used to rationalize previous observations, qualitatively as well as quantitatively.