Asset Price Instability and Policy Responses: The Legacy of Liberalization

The problem of asset price bubbles, and more generally of instability in the financial system, has been a matter of concern since the 1980s but has only recently moved to the center of the macroeconomic policy debate. The main concern with bubbles arises when they burst, imposing losses on investors holding the bubble assets and potentially on the financial institutions that have extended credit to them. Asset price volatility is an inevitable consequence of financial market liberalization and, in extreme cases, generates asset price bubbles, the bursting of which can impose substantial economic and social costs. Policy responses within the existing liberalized financial system face daunting levels of uncertainty and risk. Given the pattern of increasing asset market volatility over recent decades and the policy issues highlighted in this paper, the future looks uncertain. Another significant cycle of asset price movements, especially in one of the major economies, could see a fundamental revision of thinking about the costs and benefits of liberalized financial systems.

Discovery of cyclotide-like protein sequences in graminaceous crop plants: Ancestral precursors of circular proteins?

Cyclotides are peptides from plants of the Rubiaceae and Violaceae families that have the unusual characteristic of a macrocylic backbone. They are further characterized by their incorporation of a cystine knot in which two disulfides, along with the intervening backbone residues, form a ring through which a third disulfide is threaded. The cyclotides have been found in every Violaceae species screened to date but are apparently present in only a few Rubiaceae species. The selective distribution reported so far raises questions about the evolution of the cyclotides within the plant kingdom. In this study, we use a combined bioinformatics and expression analysis approach to elucidate the evolution and distribution of the cyclotides in the plant kingdom and report the discovery of related sequences widespread in the Poaceae family, including crop plants such as rice ( Oryza sativa), maize ( Zea mays), and wheat ( Triticum aestivum), which carry considerable economic and social importance. The presence of cyclotide-like sequences within these plants suggests that the cyclotides may be derived from an ancestral gene of great antiquity. Quantitative RT-PCR was used to show that two of the discovered cyclotide-like genes from rice and barley ( Hordeum vulgare) have tissue-specific expression patterns.

Affective priming - is it only affect that primes?

A target word is classified faster as pleasant or unpleasant if preceded by a prime that matches the target word’s valence. This affective priming phenomenon is currently popular as an implicit measure of stimulus valence. The present set of experiments investigated whether rated stimulus arousal will affect target classification as well. In three experiments, word targets were preceded by prime stimuli that differed in rated arousal and valence. The basic priming effect was replicated in all experiments, however, priming was largest after high arousal unpleasant and low arousal pleasant primes, and reduced after low arousal unpleasant and high arousal pleasant primes. This finding emerged for picture and word primes and does not reflect the effect of differences in stimulus complexity. The difference in the effectiveness of the primes was not affected by SOA and seemed to hold across a wide range (50-200 ms for words and 200-500 ms for pictures). The present results suggest that some failures to find affective priming may not reflect on prime valence, but on prime arousal. Moreover, it suggests that increases in stimulus arousal have differential effects for the processing of pleasant and unpleasant stimuli.