The Dynamic (In)efficiency of Monetary Policy by Committee

This paper develops a model where the value of the monetary policy instrument is selected by a heterogenous committee engaged in a dynamic voting game. Committee members differ in their institutional power and, in certain states of nature, they also differ in their preferred instrument value. Preference heterogeneity and concern for the future interact to generate decisions that are dynamically ineffcient and inertial around the previously-agreed instrument value. This model endogenously generates autocorrelation in the policy variable and provides an explanation for the empirical observation that the nominal interest rate under the central bank’s control is infrequently adjusted.

Voting Paths

We consider a variant of the popular matching problem here. The input instance is a bipartite graph $G=(\mathcal{A}\cup\mathcal{P},E)$, where vertices in $\mathcal{A}$ are called applicants and vertices in $\mathcal{P}$ are called posts. Each applicant ranks a subset of posts in an order of preference, possibly involving ties. A matching $M$ is popular if there is no other matching $M'$ such that the number of applicants who prefer their partners in $M'$ to $M$ exceeds the number of applicants who prefer their partners in $M$ to $M'$. However, the “more popular than” relation is not transitive; hence this relation is not a partial order, and thus there need not be a maximal element here. Indeed, there are simple instances that do not admit popular matchings. The questions of whether an input instance $G$ admits a popular matching and how to compute one if it exists were studied earlier by Abraham et al. Here we study reachability questions among matchings in $G$, assuming that $G=(\mathcal{A}\cup\mathcal{P},E)$ admits a popular matching. A matching $M_k$ is reachable from $M_0$ if there is a sequence of matchings $\langle M_0,M_1,\dots,M_k\rangle$ such that each matching is more popular than its predecessor. Such a sequence is called a length-$k$ voting path from $M_0$ to $M_k$. We show an interesting property of reachability among matchings in $G$: there is always a voting path of length at most 2 from any matching to some popular matching. Given a bipartite graph $G=(\mathcal{A}\cup\mathcal{P},E)$ with $n$ vertices and $m$ edges and any matching $M_0$ in $G$, we give an $O(m\sqrt{n})$ algorithm to compute a shortest-length voting path from $M_0$ to a popular matching; when preference lists are strictly ordered, we have an $O(m+n)$ algorithm. This problem has applications in dynamic matching markets, where applicants and posts can enter and leave the market, and applicants can also change their preferences arbitrarily. After any change, the current matching may no longer be popular, in which case we are required to update it. However, our model demands that we switch from one matching to another only if there is consensus among the applicants to agree to the switch. Hence we need to update via a voting path that ends in a popular matching. Thus our algorithm has applications here.

The use of e-voting as a new tool of e-participation in modern democracies

Finding the answer to the question of the role of electronic voting in a modern country consti - tutes an important part of researches into electronic democracy. The recent dynamic development of in - formation and communication technologies (ICT) and mass media have been leading to noticeable changes in functioning of contemporary countries and societies. ICT is beginning to play a greater and greater role and filter down to almost every field of contemporary human life – including politics. Elec - tronic voting represents one of the more and more popular forms of so called e-democracy, and is an in - teresting research subject in the context of mechanisms for implementing this form of participation in elections, its legitimization, specific technological solutions for e-voting and their effectiveness as well as unintended consequences. The main subject of this text is the use of electronic voting ( e-voting )asone of the forms of electronic democracy . The article attempts to answer the following research questions: First, what is the impact of ICT on the political processes – particularly on the voting procedures? Sec- ondly, what is the essence of electronic voting and what are its main features? Finally, what are the e-voting experiences in the European countries? The text is devoted rather to general remarks on e-voting, and does not constitute a complete analysis of the issue. It is intended to be a contribution to the further considerations.