Abstract specialization and its applications

The aim of program specialization is to optimize programs by exploiting certain knowledge about the context in which the program will execute. There exist many program manipulation techniques which allow specializing the program in different ways. Among them, one of the best known techniques is partial evaluation, often referred to simply as program specialization, which optimizes programs by specializing them for (partially) known input data. In this work we describe abstract specialization, a technique whose main features are: (1) specialization is performed with respect to "abstract" valúes rather than "concrete" ones, and (2) abstract interpretation rather than standard interpretation of the program is used in order to propágate information about execution states. The concept of abstract specialization is at the heart of the specialization system in CiaoPP, the Ciao system preprocessor. In this paper we present a unifying view of the different specialization techniques used in CiaoPP and discuss their potential applications by means of examples. The applications discussed include program parallelization, optimization of dynamic scheduling (concurreney), and integration of partial evaluation techniques.

Foreigner? Want to study in Spain? The integration process at universities

The student exchange programs being carried out at universities for over 50 years, have led to changes in the institutions, which had to adapt to accommodate these students. Despite those changes, the integration of foreign students not coming from the aforementioned exchange programs that come to our country to study at the University has been neglected. These students face many barriers (language, cultural and origin customs mainly), so a clear and detailed information would be highly desirable in order to facilitate the necessary arrangements This study aims to show the deficiencies in the integration process and hosting programs faced by a foreign student at University. The study is performed by means of an analysis of statistical data from the Polytechnic University of Madrid and the Civil Engineering School over the last 12 school years (1999 - 2000 to 2010 - 2011), as well as surveys and interviews with some of these students. The study is enhanced with the analysis of the measures and integration methods of the various minorities, which had been implemented by the foremost public universities in Spain, as well as other public and private universities abroad. It illustrates the existing backlog at the Spanish universities with regards to supporting the integration of diversity among foreign students, providing data concerning the growth of such population and its impact at the university, and on the institutions in particular. In an increasingly globalized world, we must understand and facilitate the integration of minorities at University, supplying them, from the first day, and before the enrollment process, the essential elements that will allow their adequate adaptation to the educational process at University. It concludes by identifying the main subjects that need to be tackled to endorse such integration.

Opportunities and challenges in the mobile media ecosystem

Increasing availability (andaffordability) of mobile broadband - In 2015 half of the subscriber base will be in 3G/4G, and 80% in 2020 (27% in 2011) - 7.6 billion mobile users by 2020 (5.4 billion in 2011). Mobile subscribers per 100 inhabitants:99%. Increasing availability (and affordability) of smartphones - In 2020 81% of phones sold globally will be smartphones (2.5 billion) from 26% in 2011 (400 million) - 595 million tablets in 2020 (70 million in 2011)

Opportunities and challenges of mobile social networks

Increasing availability (andaffordability) of mobile broadband - In 2015 half of the subscriber base will be in 3G/4G, and 80% in 2020 (27% in 2011) - 7.6 billion mobile users by 2020 (5.4 billion in 2011). Mobile subscribers per 100 inhabitants:99%. Increasing availability (and affordability) of smartphones - In 2020 81% of phones sold globally will be smartphones (2.5 billion) from 26% in 2011 (400 million) - 595 million tablets in 2020 (70 million in 2011)

Observation and Detection of Underground Cellars in the Duero Basin By GNSS, Lidar and Ground Penetrating Radar Techniques

The underground cellars that appear in different parts of Spain are part of an agricultural landscape dispersed, sometimes damaged, others at risk of disappearing. This paper studies the measurement and display of a group of wineries located in Atauta (Soria), in the Duero River corridor. It is a unique architectural complex, facing rising, built on a smooth hillock as shown in Fig. 1. These constructions are excavated in the ground. The access to the cave or underground cellar has a shape of a narrow tube or down gallery. Immediately after, this space gets wider. There, wine is produced and stored [1]. Observation and detection of the underground cellar, both on the outside and underground, it is essential to make an inventory of the rural patrimony [2]. The geodetection is a noninvasive technique, adequate to accurately locate buried structures in the ground. Works undertaken include topographic work with the LIDAR techniques and integration with data obtained by GNSS and GPR.

Identifying Potential Risks and Benefits of Using Cloud in Distributed Software Development.

Cloud-based infrastructure has been increasingly adopted by the industry in distributed software development (DSD) environments. Its proponents claim that its several benefits include reduced cost, increased speed and greater productivity in software development. Empirical evaluations, however, are in the nascent stage of examining both the benefits and the risks of cloud-based infrastructure. The objective of this paper is to identify potential benefits and risks of using cloud in a DSD project conducted by teams based in Helsinki and Madrid. A cross-case qualitative analysis is performed based on focus groups conducted at the Helsinki and Madrid sites. Participants observations are used to supplement the analysis. The results of the analysis indicated that the main benefits of using cloud are rapid development, continuous integration, cost savings, code sharing, and faster ramp-up. The key risks determined by the project are dependencies, unavailability of access to the cloud, code commitment and integration, technical debt, and additional support costs. The results revealed that if such environments are not planned and set up carefully, the benefits of using cloud in DSD projects might be overshadowed by the risks associated with it.

Propuesta de un modelo de sistema de información interorganizacional: aplicación en el sector de la domótica para la gestión de servicios del hogar digital

El sector de la edificación es uno de los principales sectores económicos en España y, además, es un componente básico de la actividad económica y social, debido a su importante papel como generador de empleo, proveedor de bienes e incentivador del crecimiento. Curiosamente, es uno de los sectores con menos regulación y organización y que, además, está formado mayoritariamente por empresas de pequeña y mediana dimensión (pymes) que, por su menor capacidad, a menudo, se quedan detrás de las grandes empresas en términos de adopción de soluciones innovadoras. La complejidad en la gestión de toda la información relacionada con un proyecto de edificación ha puesto de manifiesto claras ineficiencias que se traducen en un gasto innecesario bastante representativo. La información y los conocimientos aprendidos rara vez son transmitidos de una fase a otra dentro del proyecto de edificación y, mucho menos, reutilizados en otros proyectos similares. De este modo, no sólo se produce un gasto innecesario, sino que incluso podemos encontrar información contradictoria y obsoleta y, por tanto, inútil para la toma de decisiones. A lo largo de los años, esta situación ha sido motivada por la propia configuración del sector, poniendo de manifiesto la necesidad de una solución que pudiera solventar este reto de gestión interorganizacional. Así, la cooperación interorganizacional se ha convertido en un factor clave para mejorar la competitividad de las organizaciones, típicamente pymes, que componen el sector de la edificación. La información es la piedra angular de cualquier proceso de negocio. Durante la última década, una amplia gama de industrias han experimentado importantes mejoras de productividad con la aplicación eficiente de las TIC, asociadas, principalmente, a incrementos en la velocidad de proceso de información y una mayor coherencia en la generación de datos, accesibilidad e intercambio de información. La aplicación eficaz de las TIC en el sector de la edificación requiere una combinación de aspectos estratégicos y tácticos, puesto que no sólo se trata de utilizar soluciones puntuales importadas de otros sectores para su aplicación en diferentes áreas, sino que se buscaría que la información multi-agente estuviera integrada y sea coherente para los proyectos de edificación. El sector de la construcción ha experimentado un descenso significativo en los últimos años en España y en Europa como resultado de la crisis financiera que comenzó en 2007. Esta disminución está acompañada de una baja penetración de las TIC en la interorganizacionales orientadas a los procesos de negocio. El descenso del mercado ha provocado una desaceleración en el sector de la construcción, donde sólo las pymes flexibles han sido capaces de mantener el ritmo a pesar de la especialización y la innovación en los servicios adaptados a las nuevas demandas del mercado. La industria de la edificación está muy fragmentada en comparación con otras industrias manufactureras. El alto grado de esta fragmentación está íntimamente relacionado con un impacto significativo en la productividad y el rendimiento. Muchos estudios de investigación han desarrollado y propuesto una serie de modelos de procesos integrados. Por desgracia, en la actualidad todavía no se está en condiciones para la formalización de cómo debe ser la comunicación y el intercambio de información durante el proceso de construcción. El paso del proceso secuencial tradicional a los procesos de interdependencia recíproca sin lugar a duda son una gran demanda asociada a la comunicación y el flujo de información en un proyecto de edificación. Recientemente se está poniendo mucho énfasis en los servicios para el hogar como un primer paso hacia esta mejora en innovación ya que la industria de los servicios digitales interactivos tiene un alto potencial para generar innovación y la ventaja estratégica para las empresas existentes. La multiplicidad de servicios para el hogar digital (HD) y los proveedores de servicios demandan, cada vez más, la aparición de una plataforma capaz de coordinar a todos los agentes del sector con el usuario final. En consecuencia, las estructuras organizacionales tienden a descentralizarse en busca de esa coordinación y, como respuesta a esta demanda, se plantea, también en este ámbito, el concepto de cooperación interorganizacional. Por lo tanto, ambos procesos de negocio -el asociado a la construcción y el asociado a la provisión de servicios del hogar digital, también considerado como la propia gestión de ese hogar digital o edificio, inteligente o no- deben de ser vistos en su conjunto mediante una plataforma tecnológica que les dé soporte y que pueda garantizar la agregación e integración de los diversos procesos, relacionados con la construcción y gestión, que se suceden durante el ciclo de vida de un edificio. Sobre esta idea y atendiendo a la evolución permanente de los sistemas de información en un entorno de interrelación y cooperación daría lugar a una aplicación del concepto de sistema de información interorganizacional (SIIO). El SIIO proporciona a las organizaciones la capacidad para mejorar los vínculos entre los socios comerciales a lo largo de la cadena de suministro, por lo que su importancia ha sido reconocida por organizaciones de diversos sectores. Sin embargo, la adopción de un SIIO en diferentes ámbitos ha demostrado ser complicada y con una alta dependencia de las características particulares de cada sector, siendo, en este momento, una línea de investigación abierta. Para contribuir a esta línea de investigación, este trabajo pretende recoger, partiendo de una revisión de la literatura relacionada, un enfoque en un modelo de adopción de un SIIO para el objeto concreto de esta investigación. El diseño de un SIIO está basado principalmente, en la identificación de las necesidades de información de cada uno de sus agentes participantes, de ahí la importancia en concretar un modelo de SIIO en el ámbito de este trabajo. Esta tesis doctoral presenta el modelo de plataforma virtual de la asociación entre diferentes agentes del sector de la edificación, el marco de las relaciones, los flujos de información correspondientes a diferentes procesos y la metodología que subyace tras el propio modelo, todo ello, con el objeto de contribuir a un modelo unificado que dé soporte tanto a los procesos relacionados con la construcción como con la gestión de servicios en el hogar digital y permitiendo cubrir los requisitos importantes que caracterizan este tipo de proyectos: flexibilidad, escalabilidad y robustez. El SIIO se ha convertido en una fuente de innovación y una herramienta estratégica que permite a las pymes obtener ventajas competitivas. Debido a la complejidad inherente de la adopción de un SIIO, esta investigación extiende el modelo teórico de adopción de un SIIO de Kurnia y Johnston (2000) con un modelo empírico para la caracterización de un SIIO. El modelo resultante tiene como objetivo fomentar la innovación de servicios en el sector mediante la identificación de los factores que influyen en la adopción de un SIIO por las pymes en el sector de la edificación como fuente de ventaja competitiva y de colaboración. Por tanto, esta tesis doctoral, proyectada sobre una investigación empírica, proporciona un enfoque para caracterizar un modelo de SIIO que permita dar soporte a la gestión integrada de los procesos de construcción y gestión de servicios para el hogar digital. La validez del modelo de SIIO propuesto, como fuente y soporte de ventajas competitivas, está íntimamente relacionada con la necesidad de intercambio de información rápido y fiable que demandan los agentes del sector para mejorar la gestión de su interrelación y cooperación con el fin de abordar proyectos más complejos en el sector de la edificación, relacionados con la implantación del hogar digital, y contribuyendo, así a favorecer el desarrollo de la sociedad de la información en el segmento residencial. ABSTRACT The building industry is the largest industry in the world. Land purchase, building design, construction, furnishing, building equipment, operations maintenance and the disposition of real estate have an unquestionable prominence not only at economic but also at social level. In Spain, the building sector is one of the main drivers of economy and also a basic component of economic activity and its role in generating employment, supply of goods or incentive for growth is crucial in the evolution of the economy. Surprisingly, it is one of the sectors with less regulation and organization. Another consistent problem is that, in this sector, the majority of companies are small and medium (SMEs), and often behind large firms in terms of their adoption of innovative solutions. The complexity of managing all information related to this industry has lead to a waste of money and time. The information and knowledge gathered is frequently stored in multiple locations, involving the work of thousands of people, and is rarely transferred on to the next phase. This approach is inconsistent and makes that incorrect information is used for decisions. This situation needs a viable solution for interorganizational information management. So, interorganizational co-operation has become a key factor for organization competitiveness within the building sector. Information is the cornerstone of any business process. Therefore, information and communication technologies (ICT) offer a means to change the way business is conducted. During the last decade, significant productivity improvements were experienced by a wide range of industries with ICT implementation. ICT has provided great advantages in speed of operation, consistency of data generation, accessibility and exchange of information. The wasted money resulting from reentering information, errors and omissions caused through poor decisions and actions, and the delays caused while waiting for information, represent a significant percentage of the global benefits. The effective application of ICT in building construction sector requires a combination of strategic and tactical developments. The building sector has experienced a significant decline in recent years in Spain and in Europe as a result of the financial crisis that began in 2007. This drop goes hand in hand with a low penetration of ICT in inter-organizational-oriented business processes. The market decrease has caused a slowdown in the building sector, where only flexible SMEs have been able to keep the pace though specialization and innovation in services adapted to new market demands. The building industry is highly fragmented compared with other manufacturing industries. This fragmentation has a significant negative impact on productivity and performance. Many research studies have developed and proposed a number of integrated process models. Unfortunately, these studies do not suggest how communication and information exchange within the construction process can be achieved, without duplication or lost in quality. A change from the traditional sequential process to reciprocal interdependency processes would increase the demand on communication and information flow over the edification project. Focusing on home services, the digital interactive service industry has the potential to generate innovation and strategic advantage for existing business. Multiplicity of broadband home services (BHS) and suppliers suggest the need for a figure able to coordinate all the agents in sector with the final user. Consequently, organizational structures tend to be decentralized. Responding to this fact, the concept of interorganizational co-operation also is raising in the residential market. Therefore, both of these business processes, building and home service supply, must be complemented with a technological platform that supports these processes and guarantees the aggregation and integration of the several services over building lifecycle. In this context of a technological platform and the permanent evolution of information systems is where the relevance of the concept of inter-organizational information system (IOIS) emerges. IOIS improves linkages between trading partners along the supply chain. However, IOIS adoption has proved to be difficult and not fully accomplished yet. This research reviews the literature in order to focus a model of IOIS adoption. This PhD Thesis presents a model of virtual association, a framework of the relationships, an identification of the information requirements and the corresponding information flows, using the multi-agent system approach. IOIS has become a source of innovation and a strategic tool for SMEs to obtain competitive advantage. Because of the inherent complexity of IOIS adoption, this research extends Kurnia and Johnston’s (2000) theoretical model of IOIS adoption with an empirical model of IOIS characterization. The resultant model aims to foster further service innovation in the sector by identifying the factors influencing IOIS adoption by the SMEs in the building sector as a source of competitive and collaborative advantage. Therefore, this PhD Thesis characterizes an IOIS model to support integrated management of building processes and home services. IOIS validity, as source and holder of competitive advantages, is related to the need for reliable information interchanges to improve interrelationship management. The final goal is to favor tracking of more complex projects in building sector and to contribute to consolidation of the information society through the provision of broadband home services and home automation.

El campo y la ciudad, áreas de reencuentro = The field and the city, areas of reunion

English Summary: Both in the remote origin of the city and the more recent one of urbanism as a remedial discipline conceived as a means of tackling with the urban and territorial impacts of industrialisation, the relatively balanced relation between town and country was a constant which endured until the progressive fragmentation and separation among the different areas of knowledge and action contributed to create a gap between them both, with disastrous consequences in environmental, social and economical terms. The tasks at hands from the perspective of integral sustainability is to promote a reunion throughout a new culture of territory. Resumen Tanto en los orígenes remotos de la ciudad como en los recientes del urbanismo como disciplina surgida para mitigar el impacto urbano y territorial del industrialismo, la relación relativamente equilibrada entre campo y ciudad fue una constante que se mantuvo hasta que la progresiva fragmentación entre áreas de conocimiento y de intervención contribuyó a un paulatino desencuentro entre ambos, de desastrosas consecuencias en términos sociales, ambientales y económicos. La tarea que se presenta desde la óptica de la sostenibilidad integral es propiciar el reencuentro a través de una nueva cultura del territorio

Biogenesis of Polarized Epithelial Cells During Kidney Development In Situ: Roles of E-Cadherin–mediated Cell–Cell Adhesion and Membrane Cytoskeleton Organization

Organization of proteins into structurally and functionally distinct plasma membrane domains is an essential characteristic of polarized epithelial cells. Based on studies with cultured kidney cells, we have hypothesized that a mechanism for restricting Na/K-ATPase to the basal-lateral membrane involves E-cadherin–mediated cell–cell adhesion and integration of Na/K-ATPase into the Triton X-100–insoluble ankyrin- and spectrin-based membrane cytoskeleton. In this study, we examined the relevance of these in vitro observations to the generation of epithelial cell polarity in vivo during mouse kidney development. Using differential detergent extraction, immunoblotting, and immunofluorescence histochemistry, we demonstrate the following. First, expression of the 220-kDa splice variant of ankyrin-3 correlates with the development of resistance to Triton X-100 extraction for Na/K-ATPase, E-cadherin, and catenins and precedes maximal accumulation of Na/K-ATPase. Second, expression of the 190-kDa slice variant of ankyrin-3 correlates with maximal accumulation of Na/K-ATPase. Third, Na/K-ATPase, ankyrin-3, and fodrin specifically colocalize at the basal-lateral plasma membrane of all epithelial cells in which they are expressed and during all stages of nephrogenesis. Fourth, the relative immunofluorescence staining intensities of Na/K-ATPase, ankyrin-3, and fodrin become more similar during development until they are essentially identical in adult kidney. Thus, renal epithelial cells in vivo regulate the accumulation of E-cadherin–mediated adherens junctions, the membrane cytoskeleton, and Na/K-ATPase through sequential protein expression and assembly on the basal-lateral membrane. These results are consistent with a mechanism in which generation and maintenance of polarized distributions of these proteins in vivo and in vitro involve cell–cell adhesion, assembly of the membrane cytoskeleton complex, and concomitant integration and retention of Na/K-ATPase in this complex.

trEST, trGEN and Hits: access to databases of predicted protein sequences

High throughput genome (HTG) and expressed sequence tag (EST) sequences are currently the most abundant nucleotide sequence classes in the public database. The large volume, high degree of fragmentation and lack of gene structure annotations prevent efficient and effective searches of HTG and EST data for protein sequence homologies by standard search methods. Here, we briefly describe three newly developed resources that should make discovery of interesting genes in these sequence classes easier in the future, especially to biologists not having access to a powerful local bioinformatics environment. trEST and trGEN are regularly regenerated databases of hypothetical protein sequences predicted from EST and HTG sequences, respectively. Hits is a web-based data retrieval and analysis system providing access to precomputed matches between protein sequences (including sequences from trEST and trGEN) and patterns and profiles from Prosite and Pfam. The three resources can be accessed via the Hits home page (http://hits.isb-sib.ch).

l-Arginine-dependent suppression of apoptosis in Trypanosoma cruzi: Contribution of the nitric oxide and polyamine pathways

Until recently, a capacity for apoptosis and synthesis of nitric oxide (⋅NO) were viewed as exclusive to multicellular organisms. The existence of these processes in unicellular parasites was recently described, with their biological significance remaining to be elucidated. We have evaluated l-arginine metabolism in Trypanosoma cruzi in the context of human serum-induced apoptotic death. Apoptosis was evidenced by the induction of DNA fragmentation and the inhibition of [3H]thymidine incorporation, which were inhibited by the caspase inhibitor Ac-Asp-Glu-Val-aspartic acid aldehyde (DEVD-CHO). In T. cruzi exposed to death stimuli, supplementation with l-arginine inhibited DNA fragmentation, restored [3H]thymidine incorporation, and augmented parasite ⋅NO production. These effects were inhibited by the ⋅NO synthase inhibitor Nω-nitroarginine methyl ester (l-NAME). Exogenous ⋅NO limited DNA fragmentation but did not restore proliferation rates. Because l-arginine is also a substrate for arginine decarboxylase (ADC), and its product agmatine is a precursor for polyamine synthesis, we evaluated the contribution of polyamines to limiting apoptosis. Addition of agmatine, putrescine, and the polyamines spermine and spermidine to T. cruzi sustained parasite proliferation and inhibited DNA fragmentation. Also, the ADC inhibitor difluoromethylarginine inhibited l-arginine-dependent restoration of parasite replication rates, while the protection from DNA fragmentation persisted. In aggregate, these results indicate that T. cruzi epimastigotes can undergo programmed cell death that can be inhibited by l-arginine by means of (i) a ⋅NO synthase-dependent ⋅NO production that suppresses apoptosis and (ii) an ADC-dependent production of polyamines that support parasite proliferation.

Involvement of p38 in Apoptosis-associated Membrane Blebbing and Nuclear Condensation

The stress-activated protein kinase p38 is often induced by cytotoxic agents, but its contribution to cell death is ill defined. In Rat-1 cells, we found a strong correlation between activation of p38 and induction of c-Myc–dependent apoptosis. In cells with deregulated c-Myc expression but not in control cells, cis-diamminedichloroplatinum induced p38 activity and typical features of apoptosis, including internucleosomal DNA degradation, induction of caspase activities, and both nuclear (nuclear condensation and fragmentation) and extranuclear (cell blebbing) morphological alterations. The pan-caspase inhibitor N-benzyloxycarbonyl-Val-Ala-Asp-fluoromethylketone did not block p38 activation and the p38 inhibitor SB203580 had no detectable effect on the activation of caspases or the in vivo cleavage of several caspase substrates, suggesting that p38 and caspase activation can contribute distinct features of apoptosis. Accordingly, we found that cell blebbing was independent of caspase activity and, rather, depended on p38-sensitive changes in microfilament dynamics likely mediated by heat shock protein 27 phosphorylation. Furthermore, p38 activity contributed to both caspase-dependent and caspase-independent nuclear condensation and fragmentation, suggesting a role in an early event triggering both mechanisms of apoptosis or sensitizing the cells to the action of both types of apoptosis executioners. Inhibiting p38 also resulted in a significant enhancement in cell survival estimated by colony formation. This capacity to modulate the sensitivity to apoptosis in cells with deregulated c-Myc expression suggests an important role for p38 in tumor cell killing by chemotherapeutic agents.

Technology Language and Frankenstein Strategy

Teaching architecture is experiencing a moment of opportunity. New methods, like constructivist pedagogy, based on complexity and integration are yet to be explored. In this context of opportunity teaching architecture has a duty to integrate complexity in their curriculum. Teaching methods should also assume inherent indeterminacy and contingency of all complex process. If we accept this condition as part of any teaching method, the notion of truth or falsehood it becomes irrelevant. In this regard it could focus on teaching to contingency of language. Traditionally, technology is defined as the language of science. If we assume contingency as one of the characteristics of language, we could say that technology is also contingent. Therefore we could focus technology teaching to redefine its own vocabulary. So, redefining technological vocabulary could be an area of opportunity for education in architecture. The student could redefine their own tools, technology, to later innovate with them. First redefine the vocabulary, the technology, and then construct the new language, the technique. In the case of Building Technology subjects, it should also incorporate a more holistic approach for enhancing interdisciplinary transfer. Technical transfer, either from nature or other technologies to the field of architecture, is considered as a field of great educational possibilities. Evenmore, student get much broader technical approach that transgresses the boundaries of architectural discipline.

Europe between financial repression and regulatory capture. Bruegel Working Paper 2014/08, July 2014

From the Introduction. In the long shadow of the euro-area crisis, the relationship between governments and their banks has been brought to the the centre of the policy debate in Europe by the implementation of regulatory reforms, the risks associated with financial fragmentation, and the fight to sustain the flow of credit to governments and corporates. The attempt to interpret the patterns of pressure and influence running between governments and their financial system has led commentators to rediscover and give new life to concepts originating from academic debates of the 1970s such as “regulatory capture” and “financial repression”. Government agencies have been frequently described as being at the mercy of the financial sector, often allowing financial interests to hijack political, regulatory and supervisory processes in order to favouring their own private interests over the public good1. An opposite view has instead pointed the finger at governments, which have often been portrayed as subverting markets and abusing the financial system to their benefit, either in order to secure better financing conditions to overcome their own financial difficulties, or with the objective of directing credit to certain sectors of the economy, “repressing” the free functioning of financial markets and potentially the private interests of some of its participants2

So far apart and yet so close: Should the ECB care about inflation differentials? Bruegel Policy Contribution, Issue 2014/10 September 2014

Inflation rates can differ across regions of monetary unions. We show that in the euro area, the US, Canada, Japan and Australia, inflation rates have been substantially and persistently different in different regions. Differences were particularly substantial in the euro area. Inflation differences can reflect normal adjustment processes such as price convergence or the Balassa-Samuelson effect, or can reflect the different cyclical position of regions. But they can also be the result of economic distortions resulting from segmented markets or unsustainable demand and credit developments fueled by low real interest rates. In normal times, the European Central Bank cannot influence such developments with its single interest rate instrument. However, unconventional policy measures can have different effects on different countries depending on the chosen instrument, and should be used to reduce fragmentation and ensure the proper transmission of monetary policy. The new macro prudential policy tools are unlikely to be practical in addressing inflation divergences. It is crucial to keep the average inflation rate close to two percent so that inflation differentials are possible without deflation in some parts of the euro area, which in turn might endanger area-wide financial stability and price stability.