Localization and the interface between quantum mechanics, quantum field theory and quantum gravity II: The search of the interface between QFT and QG

The main topics of this second part of a two-part essay are some consequences of the phenomenon of vacuum polarization as the most important physical manifestation of modular localization. Besides philosophically unexpected consequences, it has led to a new constructive “outside-inwards approach” in which the pointlike fields and the compactly localized operator algebras which they generate only appear from intersecting much simpler algebras localized in noncompact wedge regions whose generators have extremely mild almost free field behavior.Another consequence of vacuum polarization presented in this essay is the localization entropy near a causal horizon which follows a logarithmically modified area law in which a dimensionless area (the area divided by the square of dR where dR is the thickness of a light-sheet) appears. There are arguments that this logarithmically modified area law corresponds to the volume law of the standard heat bath thermal behavior. We also explain the symmetry enhancing effect of holographic projections onto the causal horizon of a region and show that the resulting infinite dimensional symmetry groups contain the Bondi–Metzner–Sachs group. This essay is the second part of a partitioned longer paper.     

The real exchange rate,fiscal policy and the role of wealth an analysis of equilibrium in a monetary union

This paper is concerned with the adjustment processes within a potential European monetary union and looks in particular at permanent asymmetric shocks that require an adjustment in a country's (or region's) real exchange rate. We first consider some of the implications of EMU and the question of asymmetries within the European economy. The presence of asymmetries and, in particular, different institutional structures in labour markets is a potential source of tension within a union and it could make a union difficult to sustain. However, automatic adjustment processes will be at work within a monetary union as a result of changes in relative price levels, which change real exchange rates, and also as a result of changes in wealth stocks. We use our econometric world model, NIGEM, to investigate the effects of asymmetric fiscal expansions and real exchange rate misalignments within a monetary union. In order to quantify the effects of such permanent asymmetric shocks we have introduced wealth into our model. Our simulations suggest that the principal impact of the fiscal expansion on both output and the price level will occur within the country in which the expansion occurs. Short-term gains are crowded out in the medium term, and while monetary union reduces crowding out in the short term, it increases the rate at which crowding out occurs thereafter. We also analyse the effects of real exchange rate misalignments and find that the processes of adjustment may be very protracted. This could cause strain on the union as adjustment costs are shared unequally.     

Regulation of membrane trafficking and endocytosis by protein kinase C: emerging role of the pericentrion,a novel protein kinase C-dependent subset of recycling endosomes

The protein kinase C (PKC) family of isoenzymes has been shown to regulate a variety of cellular processes, including receptor desensitization and internalization, and this has sparked interest in further delineation of the roles of specific isoforms of PKC in membrane trafficking and endocytosis. Recent studies have identified a novel translocation of PKC to a juxtanuclear compartment, the pericentrion, which is distinct from the Golgi complex but epicentered on the centrosome. Sustained activation of PKC (longer than 30 min) also results in sequestration of plasma membrane lipids and proteins to the same compartment, demonstrating a global effect on endocytic trafficking. This review summarizes these studies, particularly focusing on the characterization of the pericentrion as a distinct PKC-dependent subset of recycling endosomes. We also discuss emerging insights into a role for PKC as a central hub in regulating vesicular transport pathways throughout the cell, with implications for a wide range of pathobiologic processes, e.g. diabetes and abnormal neurotransmission or receptor desensitization. Received 11 August 2006; received after revision 20 September 2006; accepted 7 November 2006