Cyclotomic and simplicial matroids

Two naturally occurring matroids representable over Q are shown to be dual: the {\it cyclotomic matroid} $\mu_n$ represented by the $n^{th}$ roots of unity $1,\zeta,\zeta^2,...,\zeta^{n-1}$ inside the cyclotomic extension $Q(\zeta)$, and a direct sum of copies of a certain simplicial matroid, considered originally by Bolker in the context of transportation polytopes. A result of Adin leads to an upper bound for the number of $Q$-bases for $Q(\zeta)$ among the $n^{th}$ roots of unity, which is tight if and only if $n$ has at most two odd prime factors. In addition, we study the Tutte polynomial of $\mu_n$ in the case that $n$ has two prime factors.Comment: 9 pages, 1 figur

The impact of the global economic and financial crisis on central, eastern and south-eastern Europe: A stock-taking exercise

The paper first reviews the main drivers of the growth and real convergence process in central, eastern and south-eastern Europe (CESEE) since 2000 and assesses the key macro-financial strengths and vulnerabilities of the region at the beginning of the global economic and financial crisis. The main part of the paper reviews financial and real economic developments in these countries since the crisis started to impact the CESEE region. The paper finds that developments have been rather heterogeneous in the region. CESEE countries with the largest economic imbalances tended to be most affected. National and international support measures appear to have helped to stabilise financial markets, and parent banks of foreign bank subsidiaries in CESEE were committed to sustaining their exposure to the region. The degree to which CESEE governments were able to use policy instruments to counter the real effects of the crisis is rather heterogeneous, depending inter alia on the exchange rate regime in place and the initial fiscal positions. JEL Classification: E52, E58, E44central, eastern and south-eastern Europe, financial crisis, vulnerability indicators

Boom and bust in the Baltic countries: Lessons to be learnt

For the first seven years of this decade, the Baltic countries experienced very rapid GDP growth. In 2007, though, the boom period turned to bust as country-specific factors such as the slowdown in credit growth dampened domestic demand growth. This was followed by the international financial crisis, which further limited the availability of foreign capital and pushed the Baltic countries into severe recession. This article looks in particular at the role of public finances, the impact of the fixed exchange-rate regimes and the need for a more balanced growth pattern in the future

The role of the exchange rate for adjustment in boom and bust episodes

Numerous countries have experienced boom-bust episodes in asset prices in the past 20 years. This study looks at stylised facts and conducts statistical and econometric analysis for such episodes, distinguishing between industrialised countries that experienced external adjustment (via real effective exchange rate depreciation during busts) and those that relied on an internal adjustment process (and experienced no depreciation). The study finds that different adjustment experiences are correlated with the degree of macroeconomic imbalances and balance sheet problems. Internal adjustment seems more prevalent when financial vulnerabilities, excess demand and competitiveness loss remain relatively contained in the boom. In the bust, internal adjusters experience more protracted but less deep downturns than external adjusters as imbalances unwind more slowly. Some Central and East European EU Member States are currently experiencing strong credit and asset price growth in conjunction with rapid economic expansion. Against this background the experience of other countries may raise awareness of related policy challenges. JEL Classification: E32, E63, E65Booms and busts, competitiveness, Exchange Rates, external and internal adjustment, financial imbalances

Real convergence in Central and Eastern European EU Member States: which role for exchange rate volatility?

This paper analyzes the relation between exchange rate volatility and several macroeconomic variables, namely real per capita output growth, the credit cycle, the stock of inward foreign direct investment (FDI) and the current account balance, in the Central and Eastern European EU Member States. Using panel estimations for the period between 1995 and 2006, we find that lower exchange rate volatility is associated with higher growth (for relatively less financially developed economies), higher stocks of FDI (for relatively more open economies), higher current account deficits, and a more volatile development of the credit to GDP ratio. JEL Classification: F3, F4, F5Catching-up, Convergence, credit, current account, EU, Exchange rate volatility, FDI, Growth

EU-Regionalpolitik: Reform oder Stillstand?

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Pseudodeterminants and perfect square spanning tree counts

The pseudodeterminant $\textrm{pdet}(M)$ of a square matrix is the last nonzero coefficient in its characteristic polynomial; for a nonsingular matrix, this is just the determinant. If $\partial$ is a symmetric or skew-symmetric matrix then $\textrm{pdet}(\partial\partial^t)=\textrm{pdet}(\partial)^2$. Whenever $\partial$ is the $k^{th}$ boundary map of a self-dual CW-complex $X$, this linear-algebraic identity implies that the torsion-weighted generating function for cellular $k$-trees in $X$ is a perfect square. In the case that $X$ is an \emph{antipodally} self-dual CW-sphere of odd dimension, the pseudodeterminant of its $k$th cellular boundary map can be interpreted directly as a torsion-weighted generating function both for $k$-trees and for $(k-1)$-trees, complementing the analogous result for even-dimensional spheres given by the second author. The argument relies on the topological fact that any self-dual even-dimensional CW-ball can be oriented so that its middle boundary map is skew-symmetric.Comment: Final version; minor revisions. To appear in Journal of Combinatoric