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Showing posts from March, 2013

Why Biological Systems Suddenly Change State: An Intuitive Guide to Freidlin–Wentzell Theory

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  Stochasticity is ubiquitous in biology and neuroscience, manifesting in various forms, including ion channel noise, synaptic variability, gene regulatory fluctuations, noisy population dynamics, and more. Many biological systems spend long periods in a stable “state” and only rarely transition to another state due to noise. For instance, a neuron typically remains inactive but may occasionally trigger a spontaneous spike. Similarly, a gene can switch from the OFF state to the ON state due to rare bursts of transcription factors. Cells can also transition out of metabolic or epigenetic states, populations might shift between different ecological equilibria, and a viral infection can fluctuate between phases of control and uncontrollability. Freidlin–Wentzell theory provides a mathematically rigorous framework to study these phenomena when noise is small but nonzero . It tells you, firstly, h ow likely rare transitions are,    secondly,   h ow fast they occ...

EUROPEAN DEBT CRISIS: THE CURRENT ACCOUNT BALANCE IS AN EARLY WARNING SIGNAL

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Often the financial/economic crises  in the Euro-zone are attributed to government budget deficits in excess of the values stated in the Stability and Growth Pact (SGP)  [ SGP regulation ] , and the Maastricht Treaty  [ see the EU document ], but we'd better take  the external debts of the European countries as at the core of the current crises.  " Because they carry obligations to make future payments, external debt liabilities have the potential to create circumstances that render an economy vulnerable to solvency and liquidity problems. Moreover, as experience has shown, external vulnerability can have widespread economic costs, and not just for the initially affected economy. It is clear, therefore, that external debt needs to be measured and monitored. "  [ see here the IMF guide on external debt ]  Under this perspective, it will turn easy to realize that the most important variable to assess the financial health of a country is given by t...

EURO CRISIS: THE CYPRUS PLOT TWIST

And so, finally the financial system of Cyprus , has been secured. Or not?  The current Eurogroup President, Mr Jeroen Dijsselbloem, who is also the Minister of Finance of the Netherlands , hailed the agreement between the government of Cyprus and the troika (EU-ECB-IMF) about the bank rescue as a template for bank restructurings:  "The agreement reached tonight puts an end to the uncertainties of Cyprus and the euro zone, "said the President of the Eurogroup, who explained that" the agreement avoids the tax, and allows a thorough restructuring of the banking sector in Cyprus."   According to the understanding reached between the troika and prime minister Anastasiades, the Laiki Bank will be closed through a controlled process and its assets will fall into a "good bank" and a "bad bank." The good assets will end up in Bank of Cyprus, as well as emergency liquidity from the ECB, which must be returned.   The threshold of € 100000 ha...

DECISION UNDER UNCERTAINTY AND THE BAYESIAN BRAIN: A NOTE ON THE CONCEPT OF DETERMINISM

In a previous post  [ here ] it was addressed the issue of bayesian modality of information processing into the brain.  The main purpose was focused on the biological palusibility of the bayesian approach in decision making under uncertainty as reported by several authors in books and in leading journals of neuroscience.  Now let's see an elucidation on   the concept of  determinism . It has different meanings [ see also ]: Causal Determinism   (or   Nomological Determinism ) states that  all events have a   cause   and   effect  therefore  future events are explained (caused) by   past   and present events   combined with the   laws of nature .   Logical Determinism   is the notion that all   propositions   (i.e. assertions or declarative sentences), whether about the past, present or future, are either   true   or   false .  Environmental Determ...

GOVERNMENT DEBT, PRIVATE DEBT & CURRENT ACCOUNT BALANCE IN EURO ZONE: A MANIFESTATION OF THE CYCLE OF FRENKEL

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The balance of payments is the statistical statement that systematically summarises, for a specific time period, the economic transactions of an economy with the rest of the world. The Balance of Payments is broken down into three broad sub-balances: the current account, the capital account, and the financial account.  Current account is the major driver of net lending/net borrowing of an economy; it provides important information about the economic relations of a country with the rest of the world. It covers all transactions (other than those in financial items) that involve economic values and occur between resident and non-resident units.  By analyzing [ source of data ] the performances of some countries in the euro area (Germany, Italy, Spain, France, Greece and the Nederlands) in three different periods (1995:2000; 2001:2007; 2008:2011) we can note that:  A) the northern countries (Germany and the Nederlands) have had significant benefits from the introduc...

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