World-Watching: Shipping Problems Webinar

Solving SMB Shipping Problems with Technology — June 14th @ 2 PM EDT

[from FreightWaves]

The supply chain challenges we hear about today likely bear little resemblance to those we envisioned at the beginning of 2020. Ongoing disruption to the global supply chain has accelerated and heightened the need to focus on risk mitigation — or face even more critical concerns.

To uncover ways small and midsized (SMB) organizations can overcome tech adoption challenges and continue to grow, FreightWaves has partnered with MyCarrier for a one-hour webinar at 2 PM EDT on Tuesday, June 14.

In this webinar, learn how SMB organizations can alleviate the pressure of industry volatility by utilizing technology to:

  1. Reduce shipping costs
  2. Maintain customer demands
  3. Source reliable capacity
  4. Ensure timely pick ups 
  5. Manage inventory
Speakers

Register for the webinar.

Economy-Watching: Supply Chain Pressures

[from the Federal Reserve Bank of New York’s Applied Macroeconomics and Econometrics Center]

Global Supply Chain Pressure Index: June 2022 Update

A new reading of the Global Supply Chain Pressure Index has been posted.

The GSCPI compiles more than two dozen metrics across seven economies—data on global transportation costs and regional manufacturing conditions—to track shifts in supply chain pressures from 1997 to the present.

The GSCPI will be updated regularly at 10 AM ET on the fourth business day of each month. The index was first introduced through a Liberty Street Economics post in early January 2022 [archived PDF], with subsequent blog posts in late January 2022 [archived PDF] and March 2022 [archived PDF].

The GSCPI is a product of the Federal Reserve Bank of New York’s Applied Macroeconomics and Econometrics Center.

View the Index.

U.S. Labor Trends: Atlanta Fed’s Labor Market Tracking Tools Updated with May Data

[from the Federal Reserve Bank of Atlanta’s Center for Human Capital Studies]

What do May employment data from the U.S. Bureau of Labor Statistics mean for the outlook for labor markets? Find out in the Atlanta Fed’s Labor Market Distributions Spider Chart, Jobs Calculator, and Labor Market Sliders.

Want to see even more economic data? Our EconomyNow app will put GDPNow and all our data tools right in your hands. Download it today to see the latest data on inflation, growth, and the labor market.

San Francisco Fed Economic Letter: Estimating Natural Rates of Unemployment

[Federal Reserve Bank San Francisco Economic Letter 2022-14, by Brandyn Bok and Nicolas Petrosky-Nadeau]

Before the pandemic, the U.S. unemployment rate reached a historic low that was close to estimates of its underlying longer-run value and the short-run level associated with an absence of inflationary pressures. After two turbulent years, unemployment has returned to its pre-pandemic low, and the estimated underlying longer-run unemployment rate appears largely unchanged. However, economic disruptions appear to have pushed up the short-run noninflationary rate substantially, as high as 6%. Examining these different measures of the natural rate of unemployment can provide useful insights for policymakers.

Read the full article [archived PDF].

World-Watching: 21st International Economic Forum on Africa 2022

[From the Organisation for Economic Co-operation and Development (OECD)]

The Future Africa Wants: Better Policies for the Next Generation and a Sustainable Transition

Fast and brutal mutations in the global economy today are reshaping conditions for transforming African economies and creating better opportunities for its youth. Efforts to reduce the continent’s dependence on raw material exports, advance productive transformation and increase investment and domestic resource mobilization are being challenged.

Can innovative policies and international partnerships help address: 

Join OECD experts, African leaders and policy makers and shakers to discuss next steps for a more sustainable future.

The 21st edition of the AUOECD International Economic Forum on Africa takes places in the framework of the OECD Ministerial Council Meeting (MCM), chaired by Italy under the theme “The Future We Want: Better Policies for the Next Generation and a Sustainable Transition.” The Forum is an opportunity for OECD members to engage at high level, yet informally, with Africa’s leaders, movers and shakers on the way forward.

Register to attend in person.

Can’t come to Paris? Join the Forum online, watch it on OECD TV, Twitter or Facebook

Science-Watching: Nature webinar

Cryo-EM and artificial intelligence: A marriage made in cell extracts

Date: Thursday, June 16, 2022

Reserve your seat

This webcast has been produced on behalf of Nature’s sponsor who retains sole responsibility for content. About this content.

About this webcast

Deep insights into how cellular proteins interact have been out of reach, especially in a native context. In this webcast, Dr. Panagiotis Kastritis of Martin Luther University Halle-Wittenberg will describe how analysis of endogenous cell extracts with cryo-EM and artificial intelligence methods can provide integrated biological analysis of protein communities in a closer-to-native setting.

Unable to join the live event?

Watch on demand—register now to ensure that you receive information on how to gain access after the live event.

Mathematics and the World: London Mathematical Laboratory

Stability of Heteroclinic Cycles in Rings of Coupled Oscillators

[from the London Mathematical Laboratory]

Complex networks of interconnected physical systems arise in many areas of mathematics, science and engineering. Many such systems exhibit heteroclinic cyclesdynamical trajectories that show a roughly periodic behavior, with non-convergent time averages. In these systems, average quantities fluctuate continuously, although the fluctuations slow down as the dynamics repeatedly and systematically approach a set of fixed points. Despite this general understanding, key open questions remain concerning the existence and stability of such cycles in general dynamical networks.

In a new paper [archived PDF], LML Fellow Claire Postlethwaite and Rob Sturman of the University of Leeds investigate a family of coupled map lattices defined on ring networks and establish stability properties of the possible families of heteroclinic cycles. To begin, they first consider a simple system of N coupled systems, each system based on the logistic map, and coupling between systems determined by a parameter γ. If γ = 0, each node independently follows logistic map dynamics, showing stable periodic cycles or chaotic behavior. The authors design the coupling between systems to have a general inhibitory effect, driving the dynamics toward zero. Intuitively, this should encourage oscillatory behavior, as nodes can alternately be active (take a non-zero value), and hence inhibit those nodes to which it is connected to, decay, when other nodes in turn inhibit them; and finally grow again to an active state as the nodes inhibiting them decay in turn. In the simple case of N = 3, for example, this dynamics leads to a trajectory which cycles between three fixed points.

The authors then extend earlier work to consider larger networks of coupled systems as described by a directed graph, describing how to find the fixed points and heteroclinic connections for such a system. In general, they show, this procedure results in highly complex and difficult to analyze heteroclinic network. Simplifying to the special case of N-node directed graphs with one-way nearest neighbor coupling, they successfully derive results for the dynamic stability of subcycles within this network, establishing that only one of the subcycles can ever be stable.

Overall, this work demonstrates that heteroclinic networks can typically arise in the phase space dynamics of certain types of symmetric graphs with inhibitory coupling. Moreover, it establishes that at most one of the subcycles can be stable (and hence observable in simulations) for an open set of parameters. Interestingly, Postlethwaite and Sturman find that the dynamics associated with such cycles are not ergodic, so that long-term averages do not converge. In particular, averaged observed quantities such as Lyapunov exponents are ill-defined, and will oscillate at a progressively slower rate.

In addition, the authors also address the more general question of whether or not a stable heteroclinic cycle is likely to be found in the corresponding phase space dynamics of a randomly generated physical network of nodes. In preliminary investigations using randomly generated Erdős–Rényi graphs, they find that the probability of existence of heteroclinic cycles increases both as the number of nodes in the physical network increases, and also as the density of edges in the physical network decreases. However, even in cases where the probability of existence of heteroclinic cycles is high, there is also a high chance of the existence of a stable fixed point in the phase space. From this they conclude that the question of the stability of the heteroclinic cycle is important in determining whether or not the heteroclinic cycle, and associated slowing down of trajectories, will be observed in the phase space associated with a randomly generated graph.

The paper is available as a pre-print here [archived PDF].

World-Watching: Germany Bundesbank: What Moves Markets?

[Deutsche Bundesbank discussion paper 16/2022 by Mark Kerssenfischer & Maik Schmeling]

Non-technical summary

Research question

A key question in the macro-finance literature concerns the drivers of asset prices. Are asset prices mainly driven by news, or by changes in sentiment and other factors unrelated to economic fundamentals? In most asset pricing models, news play a dominant role. But in empirical investigations, the explanatory power of news is often quite low.

Contribution

We study the explanatory power of news by building a large, time-stamped event database covering a wealth of news related to the macroeconomy, including macroeconomic data releases, central bank announcements, bond auctions, election results, sovereign rating downgrades, and natural catastrophes. We combine this event database with high-frequency stock price and bond yield changes, both for the U.S. and the euro area, going back to 2002.

Results

We find that roughly half of all stock and bond price movements in the U.S. and euro area occur in tight windows around clearly identifiable news and in this sense can be explained by those news. On the positive side, this share is much higher than most previous studies found. However, our results still ascribe a large role to return variation that cannot be linked to news about economic fundamentals.

Read the paper [archived PDF].

Asia-Watching: New Studies on Tariffs; FDIs and Global Value Chains

[from Asia-Pacific Economic Cooperation, May 15, 2022]

Study on Tariffs: Analysis of the
Regional Comprehensive Economic Partnership
Tariff Liberalization Schedules

prepared by Carlos Kuriyama, Sylwyn C. Calizo Jr. & Jason Carlo O. Carranceja

RCEP is the largest regional free trade agreement (FTA) in the world. Its potential is huge, as its 15 members account for about 2.2 billion people (30% of the global population), a regional gross domestic product (GDP) of about USD38,813 billion (30% of global GDP), and 28.8% of global trade. This study examines market access commitments and comparing the extent of tariff liberalization within RCEP as well as the other major regional FTA in the Asia-Pacific, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

Read the full article [archived PDF].

The FDI Network, Global Value Chain Participation and Economic Upgrading

by Luna Ge Lai, Nguyen Thu Quynh & Akhmad Bayhaqi

Foreign direct investment (FDI) represents an important internationalization pathway to global value chain (GVC) participation. APEC economies as a group have dominated as FDI recipients, accounting for nearly 52% of the global inward FDI stock. This study analyses the role of FDI in economiesGVC participation.

Read the full article [archived PDF].

USDA Foreign Agricultural Service: World Agricultural Production

Monthly report on crop acreage, yield and production in major countries worldwide. Sources include reporting from FAS’s worldwide offices, official statistics of foreign governments, and analysis of economic data and satellite imagery. The report reflects official USDA estimates released in the monthly World Agricultural Supply and Demand Estimates (WASDE).

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