Central Banks in Times of Crisis: The FED vs. the ECB. CEPS Policy Brief No. 276, 11 July 2012,

Different economic and financial structures require different crisis responses. Different crises also require different tools and resources. The first ‘stage’ of the financial crisis (2007-09) was similar on both sides of the Atlantic, and the response was also quite similar. The second stage of the crisis is unique to the euro area. Increasing financial disintegration within the region has forced the ECB to become the central counterparty for the entire cross-border banking market and to intervene in the sovereign bond market of some stressed countries. The actions undertaken by the European Central Bank (ECB), however, have not always represented the best response, in terms of effectiveness, consistency and transparency. This is especially true for the Securities Markets Programme (SMP): by de facto imposing its absolute seniority during the Greek PSI (private sector involvement), the ECB has probably killed its future effectiveness.

The implications for the EU and national budgets of the use of EU instruments for macro-financial stability. CEPS Special Report, 4 September 2012

The euro crisis has forced member states and the EU institutions to create a series of new instruments to safeguard macro-financial stability of the Union. This study describes the status of existing instruments, the role of the European Parliament and how the use of the instruments impinges on the EU budget also through their effects on national budgets. In addition, it presents a survey of other possible instruments that have been proposed in recent years (e.g. E-bonds and eurobonds), in order to provide an assessment of how EU macro-financial stability assistance could evolve in the future and what could be its impact on EU public finances.

The diabatic contour advective semi-Lagrangian model

This article describes a novel algorithmic development extending the contour advective semi-Lagrangian model to include nonconservative effects. The Lagrangian contour representation of finescale tracer fields, such as potential vorticity, allows for conservative, nondiffusive treatment of sharp gradients allowing very high numerical Reynolds numbers. It has been widely employed in accurate geostrophic turbulence and tracer advection simulations. In the present, diabatic version of the model the constraint of conservative dynamics is overcome by including a parallel Eulerian field that absorbs the nonconservative ( diabatic) tendencies. The diabatic buildup in this Eulerian field is limited through regular, controlled transfers of this field to the contour representation. This transfer is done with a fast newly developed contouring algorithm. This model has been implemented for several idealized geometries. In this paper a single-layer doubly periodic geometry is used to demonstrate the validity of the model. The present model converges faster than the analogous semi-Lagrangian models at increased resolutions. At the same nominal spatial resolution the new model is 40 times faster than the analogous semi-Lagrangian model. Results of an orographically forced idealized storm track show nontrivial dependency of storm-track statistics on resolution and on the numerical model employed. If this result is more generally applicable, this may have important consequences for future high-resolution climate modeling.

Storm tracks and climate change

Extratropical and tropical transient storm tracks are investigated from the perspective of feature tracking in the ECHAM5 coupled climate model for the current and a future climate scenario. The atmosphere-only part of the model, forced by observed boundary conditions, produces results that agree well with analyses from the 40-yr ECMWF Re-Analysis (ERA-40), including the distribution of storms as a function of maximum intensity. This provides the authors with confidence in the use of the model for the climate change experiments. The statistical distribution of storm intensities is virtually preserved under climate change using the Intergovernmental Panel on Climate Change (IPCC) Special Report on Emissions Scenarios (SRES) A1B scenario until the end of this century. There are no indications in this study of more intense storms in the future climate, either in the Tropics or extratropics, but rather a minor reduction in the number of weaker storms. However, significant changes occur on a regional basis in the location and intensity of storm tracks. There is a clear poleward shift in the Southern Hemisphere with consequences of reduced precipitation for several areas, including southern Australia. Changes in the Northern Hemisphere are less distinct, but there are also indications of a poleward shift, a weakening of the Mediterranean storm track, and a strengthening of the storm track north of the British Isles. The tropical storm tracks undergo considerable changes including a weakening in the Atlantic sector and a strengthening and equatorward shift in the eastern Pacific. It is suggested that some of the changes, in particular the tropical ones, are due to an SST warming maximum in the eastern Pacific. The shift in the extratropical storm tracks is shown to be associated with changes in the zonal SST gradient in particular for the Southern Hemisphere.

Climate response to basin-scale warming and cooling of the North Atlantic Ocean

Using experiments with an atmospheric general circulation model, the climate impacts of a basin-scale warming or cooling of the North Atlantic Ocean are investigated. Multidecadal fluctuations with this pattern were observed during the twentieth century, and similar variations--but with larger amplitude--are believed to have occurred in the more distant past. It is found that in all seasons the response to warming the North Atlantic is strongest, in the sense of highest signal-to-noise ratio, in the Tropics. However there is a large seasonal cycle in the climate impacts. The strongest response is found in boreal summer and is associated with suppressed precipitation and elevated temperatures over the lower-latitude parts of North and South America. In August­-September-­October there is a significant reduction in the vertical shear in the main development region for Atlantic hurricanes. In winter and spring, temperature anomalies over land in the extratropics are governed by dynamical changes in circulation rather than simply reflecting a thermodynamic response to the warming or cooling of the ocean. The tropical climate response is primarily forced by the tropical SST anomalies, and the major features are in line with simple models of the tropical circulation response to diabatic heating anomalies. The extratropical climate response is influenced both by tropical and higher-latitude SST anomalies and exhibits nonlinear sensitivity to the sign of the SST forcing. Comparisons with multidecadal changes in sea level pressure observed in the twentieth century support the conclusion that the impact of North Atlantic SST change is most important in summer, but also suggest a significant influence in lower latitudes in autumn and winter. Significant climate impacts are not restricted to the Atlantic basin, implying that the Atlantic Ocean could be an important driver of global decadal variability. The strongest remote impacts are found to occur in the tropical Pacific region in June­-August and September­-November. Surface anomalies in this region have the potential to excite coupled ocean­atmosphere feedbacks, which are likely to play an important role in shaping the ultimate climate response.

The influence of a weakening of the Atlantic meridional overturning circulation on ENSO

The influences of a substantial weakening of the Atlantic meridional overturning circulation (AMOC) on the tropical Pacific climate mean state, the annual cycle, and ENSO variability are studied using five different coupled general circulation models (CGCMs). In the CGCMs, a substantial weakening of the AMOC is induced by adding freshwater flux forcing in the northern North Atlantic. In response, the well-known surface temperature dipole in the low-latitude Atlantic is established, which reorganizes the large-scale tropical atmospheric circulation by increasing the northeasterly trade winds. This leads to a southward shift of the intertropical convergence zone (ITCZ) in the tropical Atlantic and also the eastern tropical Pacific. Because of evaporative fluxes, mixing, and changes in Ekman divergence, a meridional temperature anomaly is generated in the northeastern tropical Pacific, which leads to the development of a meridionally symmetric thermal background state. In four out of five CGCMs this leads to a substantial weakening of the annual cycle in the eastern equatorial Pacific and a subsequent intensification of ENSO variability due to nonlinear interactions. In one of the CGCM simulations, an ENSO intensification occurs as a result of a zonal mean thermocline shoaling. Analysis suggests that the atmospheric circulation changes forced by tropical Atlantic SSTs can easily influence the large-scale atmospheric circulation and hence tropical eastern Pacific climate. Furthermore, it is concluded that the existence of the present-day tropical Pacific cold tongue complex and the annual cycle in the eastern equatorial Pacific are partly controlled by the strength of the AMOC. The results may have important implications for the interpretation of global multidecadal variability and paleo-proxy data.

Is Antarctic climate most sensitive to ozone depletion in the middle or lower stratosphere?

Antarctic stratospheric ozone depletion has been associated with an observed downward trend in tropospheric geopotential height and temperature. Stratospheric ozone depletion peaks in October–November, whereas tropospheric trends are largest in December–January, concurrent with maximum ozone changes close to the tropopause. Surface temperatures are most sensitive to ozone loss near the tropopause, therefore it has been suggested that the observed tropospheric response is forced mainly by ozone depletion in the lower stratosphere. In this study the climate response to ozone depletion exclusively below 164 hPa is simulated using HadSM3-L64, and compared with simulations in which ozone depletion is prescribed exclusively above 164 hPa. Results indicate that the tropospheric response is dominated by ozone changes above 164 hPa, with ozone changes in the lowermost stratosphere playing an insignificant role. A tropospheric response is also seen in fall/winter which agrees well with observations and has not been found in modeling studies previously.

The effect of doubled CO2 and model basic state biases on the monsoon-ENSO system. II: Changing ENSO regimes

Integrations of a fully-coupled climate model with and without flux adjustments in the equatorial oceans are performed under 2×CO2 conditions to explore in more detail the impact of increased greenhouse gas forcing on the monsoon-ENSO system. When flux adjustments are used to correct some systematic model biases, ENSO behaviour in the modelled future climate features distinct irregular and periodic (biennial) regimes. Comparison with the observed record yields some consistency with ENSO modes primarily based on air-sea interaction and those dependent on basinwide ocean wave dynamics. Simple theory is also used to draw analogies between the regimes and irregular (stochastically forced) and self-excited oscillations respectively. Periodic behaviour is also found in the Asian-Australian monsoon system, part of an overall biennial tendency of the model under these conditions related to strong monsoon forcing and increased coupling between the Indian and Pacific Oceans. The tropospheric biennial oscillation (TBO) thus serves as a useful descriptor for the coupled monsoon-ENSO system in this case. The presence of obvious regime changes in the monsoon-ENSO system on interdecadal timescales, when using flux adjustments, suggests there may be greater uncertainty in projections of future climate, although further modelling studies are required to confirm the realism and cause of such changes.

Impact of Tibetan Orography and Heating on the Summer Flow over Asia

The influence on the summer flow over Asia of both the orographic and thermal forcing of the Tibetan Plateau is investigated using a sequence of idealised experiments with a global primitive equation model. The zonally averaged flow is prescribed and both realistic and idealised orography and heating are used. There is some similarity between the responses to the two forcings when applied separately. The upper tropospheric Tibetan anticyclone is predominantly forced by the heating but also weakly by the orography. Below this, both forcings tend to give air descending in an equatorward anticyclonic circulation down the isentropes to the west and rising in a similar poleward circulation to the east. However the heating-only response has a strong ascending southwesterly flow that is guided around the south and south-east of the orography when it is included. On the northern side, the westerly flow over the orography gives ascent on the upslope and descent on the downslope. It is found that heating over the Plateau leads to a potential vorticity (PV) minimum and that if it is sufficiently strong the flow is unstable, producing a quasi-biweekly oscillation. During this oscillation the Tibetan anticyclone changes between a single centre over the southwestern side of the Plateau and a split/double structure with centres over China and the Middle East. These characteristics are similar to observed variability in the region. Associated with this quasi-biweekly oscillation are significant variations in the strength of the ascent over the Plateau and the Rossby wave pattern over the North Pacific. The origin of the variability is instability associated with the zonally extended potential vorticity PV minimum on a θ-surface, as proposed by Hsu and Plumb (2000). This minimum is due to the tendency to reduce the PV above the heating over the Plateau and to advection by the consequent anticyclone of high PV around from the east and low PV to the west. The deep convection to the south and southeast of the Plateau tends to suppress the quasi-biweekly oscillation because the low PV produced above it acts to reduce the meridional PV gradient reversal. The occurrence of the oscillation depends on the relative magnitude of the heating in the two regions.

Wind-tunnel modelling of dispersion from a scalar area source in urban-like roughness

A wind-tunnel study was conducted to investigate ventilation of scalars from urban-like geometries at neighbourhood scale by exploring two different geometries a uniform height roughness and a non-uniform height roughness, both with an equal plan and frontal density of λ p = λ f = 25%. In both configurations a sub-unit of the idealized urban surface was coated with a thin layer of naphthalene to represent area sources. The naphthalene sublimation method was used to measure directly total area-averaged transport of scalars out of the complex geometries. At the same time, naphthalene vapour concentrations controlled by the turbulent fluxes were detected using a fast Flame Ionisation Detection (FID) technique. This paper describes the novel use of a naphthalene coated surface as an area source in dispersion studies. Particular emphasis was also given to testing whether the concentration measurements were independent of Reynolds number. For low wind speeds, transfer from the naphthalene surface is determined by a combination of forced and natural convection. Compared with a propane point source release, a 25% higher free stream velocity was needed for the naphthalene area source to yield Reynolds-number-independent concentration fields. Ventilation transfer coefficients w T /U derived from the naphthalene sublimation method showed that, whilst there was enhanced vertical momentum exchange due to obstacle height variability, advection was reduced and dispersion from the source area was not enhanced. Thus, the height variability of a canopy is an important parameter when generalising urban dispersion. Fine resolution concentration measurements in the canopy showed the effect of height variability on dispersion at street scale. Rapid vertical transport in the wake of individual high-rise obstacles was found to generate elevated point-like sources. A Gaussian plume model was used to analyse differences in the downstream plumes. Intensified lateral and vertical plume spread and plume dilution with height was found for the non-uniform height roughness

Preferred structures in large-scale circulation and the effect of doubling greenhouse gas concentration in HadCM3

Preferred structures in the surface pressure variability are investigated in and compared between two 100-year simulations of the Hadley Centre climate model HadCM3. In the first (control) simulation, the model is forced with pre-industrial carbon dioxide concentration (1×CO2) and in the second simulation the model is forced with doubled CO2 concentration (2×CO2). Daily winter (December-January-February) surface pressures over the Northern Hemisphere are analysed. The identification of preferred patterns is addressed using multivariate mixture models. For the control simulation, two significant flow regimes are obtained at 5% and 2.5% significance levels within the state space spanned by the leading two principal components. They show a high pressure centre over the North Pacific/Aleutian Islands associated with a low pressure centre over the North Atlantic, and its reverse. For the 2×CO2 simulation, no such behaviour is obtained. At higher-dimensional state space, flow patterns are obtained from both simulations. They are found to be significant at the 1% level for the control simulation and at the 2.5% level for the 2×CO2 simulation. Hence under CO2 doubling, regime behaviour in the large-scale wave dynamics weakens. Doubling greenhouse gas concentration affects both the frequency of occurrence of regimes and also the pattern structures. The less frequent regime becomes amplified and the more frequent regime weakens. The largest change is observed over the Pacific where a significant deepening of the Aleutian low is obtained under CO2 doubling.

Modeled and observed atmospheric radiation balance during the West African dry season: role of mineral dust, biomass burning aerosol, and surface albedo

The global radiation balance of the atmosphere is still poorly observed, particularly at the surface. We investigate the observed radiation balance at (1) the surface using the ARM Mobile Facility in Niamey, Niger, and (2) the top of the atmosphere (TOA) over West Africa using data from the Geostationary Earth Radiation Budget (GERB) instrument on board Meteosat-8. Observed radiative fluxes are compared with predictions from the global numerical weather prediction (NWP) version of the Met Office Unified Model (MetUM). The evaluation points to major shortcomings in the NWP model's radiative fluxes during the dry season (December 2005 to April 2006) arising from (1) a lack of absorbing aerosol in the model (mineral dust and biomass burning aerosol) and (2) a poor specification of the surface albedo. A case study of the major Saharan dust outbreak of 6–12 March 2006 is used to evaluate a parameterization of mineral dust for use in the NWP models. The model shows good predictability of the large-scale flow out to 4–5 days with the dust parameterization providing reasonable dust uplift, spatial distribution, and temporal evolution for this strongly forced dust event. The direct radiative impact of the dust reduces net downward shortwave (SW) flux at the surface (TOA) by a maximum of 200 W m−2 (150 W m−2), with a SW heating of the atmospheric column. The impacts of dust on terrestrial radiation are smaller. Comparisons of TOA (surface) radiation balance with GERB (ARM) show the “dusty” forecasts reduce biases in the radiative fluxes and improve surface temperatures and vertical thermodynamic structure.

Decadal predictability of the Atlantic Ocean in a coupled GCM: forecast skill and optimal perturbations using Linear Inverse Modelling

The decadal predictability of three-dimensional Atlantic Ocean anomalies is examined in a coupled global climate model (HadCM3) using a Linear Inverse Modelling (LIM) approach. It is found that the evolution of temperature and salinity in the Atlantic, and the strength of the meridional overturning circulation (MOC), can be effectively described by a linear dynamical system forced by white noise. The forecasts produced using this linear model are more skillful than other reference forecasts for several decades. Furthermore, significant non-normal amplification is found under several different norms. The regions from which this growth occurs are found to be fairly shallow and located in the far North Atlantic. Initially, anomalies in the Nordic Seas impact the MOC, and the anomalies then grow to fill the entire Atlantic basin, especially at depth, over one to three decades. It is found that the structure of the optimal initial condition for amplification is sensitive to the norm employed, but the initial growth seems to be dominated by MOC-related basin scale changes, irrespective of the choice of norm. The consistent identification of the far North Atlantic as the most sensitive region for small perturbations suggests that additional observations in this region would be optimal for constraining decadal climate predictions.

The moist boundary layer under a mid-latitude weather system

Mid-latitude weather systems are key contributors to the transport of atmospheric water vapour, but less is known about the role of the boundary layer in this transport. We expand a conceptual model of dry boundary-layer structure under synoptic systems to include moist processes, using idealised simulations of cyclone waves to investigate the three-way interaction between the boundary layer, atmospheric moisture and large-scale dynamics. Forced by large-scale thermal advection, boundary-layer structures develop over large areas, analogous to the daytime convective boundary layer, the nocturnal stable boundary layer and transitional regimes between these extremes.

Does the North Atlantic Oscillation show unusual persistence on intraseasonal timescales?

Previous studies have argued that the autocorrelation of the winter North Atlantic Oscillation (NAO) index provides evidence of unusually persistent intraseasonal dynamics. We demonstrate that the autocorrelation on intraseasonal time-scales of 10–30 days is sensitive to the presence of interannual variability, part of which arises from the sampling of intraseasonal variability and the remainder of which we consider to be “externally forced”. Modelling the intraseasonal variability of the NAO as a red noise process we estimate, for winter, ~70% of the interannual variability is externally forced, whereas for summer sampling accounts for almost all of the interannual variability. Correcting for the externally forced interannual variability has a major impact on the autocorrelation function for winter. When externally forced interannual variability is taken into account the intrinsic persistence of the NAO is very similar in summer and winter (~5 days). This finding has implications for understanding the dynamics of the NAO.