Trade effects of exchange rate fluctuations: Evidence from Sweden

An overview of the theoretical literature for the last two decades suggests that there is no clear-cut relationship one can pin down between exchange rate volatility and trade flows. Analytical results are based on specific assumptions and only hold in certain cases. Especially, the impact of exchange rate volatility on export and import activity investigated separately leads also to dissimilar conclusions among countries studied. The general presumption is that an increase in exchange rate volatility will have an adverse effect on trade flows and consequently, the overall heath of the world economy. However, neither theoretical models nor empirical studies provide us with a definitive answer, leaving obtained results highly ambiguous and inconsistent (Baum and Caglayan, 2006). We purposed to empirically investigate trade effects of exchange rate fluctuations in Sweden from the perspective of export and import in this research. The data comprises period from January 1993 to December 2006, where export and import volumes are considered from the point of their determinants, including exchange rate volatility, which has been measured through EGARCH model. The results for the case of Sweden show that short run dynamics of volatility negatively associated with both export and import, whereas considered from the case of previous period volatility it exhibits positive relationship. These results are consistent with the most findings of prior studies, where the relationship remained ambiguous.

Quantum control of electromagnetically induced transparency dispersion via atomic tunneling in a double-well Bose-Einstein condensate

Electromagnetically induced transparency (EIT) is an important tool for controlling light propagation and nonlinear wave mixing in atomic gases with potential applications ranging from quantum computing to table top tests of general relativity. Here we consider EIT in an atomic Bose-Einstein condensate (BEC) trapped in a double-well potential. A weak probe laser propagates through one of the wells and interacts with atoms in a three-level Lambda configuration. The well through which the probe propagates is dressed by a strong control laser with Rabi frequency Omega(mu), as in standard EIT systems. Tunneling between the wells at the frequency g provides a coherent coupling between identical electronic states in the two wells, which leads to the formation of interwell dressed states. The macroscopic interwell coherence of the BEC wave function results in the formation of two ultranarrow absorption resonances for the probe field that are inside of the ordinary EIT transparency window. We show that these new resonances can be interpreted in terms of the interwell dressed states and the formation of a type of dark state involving the control laser and the interwell tunneling. To either side of these ultranarrow resonances there is normal dispersion with very large slope controlled by g. We discuss prospects for observing these ultranarrow resonances and the corresponding regions of high dispersion experimentally.