Are central bank projections rational?

Recognizing projections of rational curves

Given two rational, properly parametrized space curves C1 and C2, where C2 is contained in some plane Π, we provide an algorithm to check whether or not there exist perspective or parallel projections mapping C1 onto C2, i.e. to recognize C2 as the projection of C1. In the affirmative case, the algorithm provides the eye point(s) of the perspective transformation(s), or the direction(s) of the ...

Structure of rational Krylov projections

The value of central bank transparency when agents are learning

We examine the role of central bank transparency when the private sector is modeled as adaptive learners. In our model, transparent policies enable the private sector to adopt correctly specified models of inflation and output while intransparent policies do not. In the former case, the private sector learns the rational expectations equilibrium while in the latter case it learns a restricted p...

Central Bank Independence and Central Bank Conservatism: Theory with an Application to Iran

New monetary literatures widely concentrates on the importance of institutional arrangements in the effectiveness of monetary policy. The debate regarding the optimal institutional design of central banks, independence and conservatism are usually considered to be the most important ingredients for a stable and successful monetary policy. Therefore, the purpose of this study is to deal with the...

Distances and Central Projections

Given a point P in Euclidean space R3 we look for all points Q such that the length PQ of the line segments PQ from P to Q equals the length of the central image of the segment. It turns out that for any fixed point P the set of all points Q is a quartic surface Φ. The quartic Φ carries a one-parameter family of circles, has two conical nodes, and intersects the image plane π along a proper lin...