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The subject of the analysis in this paper is to identify and evaluate the concept of central bank legal responsibility in the contemporary monetary law. In this regard, the research focuses on issues related to the need of clarifying and defining the nature, type and extent of central bank liability and compensation mechanisms for damage that may be caused to third parties in the implementation of the transferred lex monetae in practice. The first part of the paper focuses on the axiological and dogmatic analyses of the legal framework of the central bank, which is governed by the national monetary legislation sui generis, and the interpretation of different legislative solutions in the practice of comparative monetary law in the area of responsibility and legal protection of the central bank. The subject of special interest of the authors is the monetary-legal analysis of the relevant provisions of the Law on the National Bank of Serbia, since in their opinion, a clear determination of the responsibility of the supreme monetary institution is a precondition for its credibility, not only in national but also in the international monetary order, and a conditio sine qua non of creating a reputable and consistent national monetary jurisdiction.
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National competitiveness, macro-competitiveness, and competitiveness of states; those seemingly simple and common terms, are actually highly controversial. The interpretation of historical backgrounds and basic postulates which have been the foundations of methods for the measurement of macro-competitiveness since the 1970s to the present, is a matter of interest in the first part of this paper. Just after this, we will provide critical observations on methods used so far - which is necessary if we want to make a contribution to the further development of theory (and practice). The second part of this work, which is smaller in quantity but larger in quality, is committed to the development of the theoretical foundation for the development of the new fourth generation of methods for measurement of macro-competitiveness. We entitled this method ULC + the method for measurement of national competitiveness and it is based on the synthesis of Michael Porter’s idea that productivity is a synonym for competitiveness and the direct (outputs) methods for measurement of national competitiveness. We have done this by using working hours as a common measuring unit which would enable us to sum “apples and oranges”, meaning the cost of labor and the cost of capital.
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Bosnia and Herzegovina is a state of a complex legal and political structure with four levels of administrative authority - the joint institution of Bosnia and Herzegovina, the Republic of Srpska, the Federation of Bosnia and Herzegovina, and the Brčko District of Bosnia and Herzegovina. In addition, each level of authority collects and disposes of direct taxes, while indirect taxes are collected through a single system, and their distribution is carried out at the aforementioned levels. There is no single framework for managing public finances, both in organisational and material terms. Bosnia and Herzegovina is in constant credit arrangements with the International Monetary Fund (IMF), which are conditioned by constant reform requirements. Public administration financing is burdened by the hyperinflation of administrative bodies, by a large number of employees in the public sector, by the lack of central register of personnel, by complicated public procurement procedures, by the lack of strategic framework for public finance management, by significant deficiencies observed by audit services, by non-compliance with audit recommendations, by non- transparency of budget spending, by the inefficiency of internal audit, and by the lack of harmonisation between the domestic legal framework with that of the EU. This paper analyses the existing legal framework of public finances from the aspect of governance, the European Commission’s Progress Report on Public Finance in Bosnia and Herzegovina, the SIGMA-OECD Reports on the European Principles of Financial Management in Public Institutions, and the EU Guidelines on Public Finance, and is rounded off by identifying the challenges of harmonisation of the domestic legal framework with that of the EU in the field of public finances, offering operational solutions and recommendations.
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This paper presents the views of Croatian citizens about some of the most relevant aspects of the tax system. The research builds on previous broader research into the views of tax experts in Croatia. The current research objectives include: revealing citizens' views about the most important tax issues, establishing the influence of demographic characteristics and attitudes towards redistribution on their answers, and the comparison of their views with those of tax experts. On the one hand, citizens mostly advocate the abolishment of inheritance and gifts taxation, as well interest taxation, but on the other hand, they advocate the introduction of bank taxation and junk food taxation. They are in favour of broadening the reduced VAT rate to encompass all foodstuffs. The regression results suggest a strong influence of the redistributive notion of the tax system, followed by real estate ownership, income level, education level and work status. Comparison with the answers of professionals reveals a statistically significant difference. The paper should contribute to the awareness of public acceptance of the tax system and policy and provide some guidance about their changes.
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This study aims to investigate the impact of aggressive monetary policy in terms of inflation on the effects of structural shocks over macroeconomic fundamentals in Turkey. For this purpose, we estimate the basic new Keynesian model by using the Bayesian method for the period of 2000Q1 to 2019Q1. We use the most recent quarterly dataset of the real gross domestic product index, consumer price index and short term interest rate for Turkey. The prior distribution of structural parameters and shock processes are determined according to the literature. Then, we estimate two different version of the basic new Keynesian model with six distinct chains of Metropolis-Hasting algorithm with each of 100000 draws. Finally, we examine the long term impact of aggressive monetary policy on the effects of structural shocks with the help of the unconditional variance decomposition. Besides, the short term and over time analysis are conducted via the conditional forecast error variance decompositions. The results of Bayesian impulse responses are consistent with theoretical framework of the new Keynesian synthesis. Besides, the historical shock decompositions of endogenous variables give valuable insight for the last twenty years of Turkish economy. The empirical results show that aggressive monetary policy increases the effects of monetary policy shock on inflation while its impact on output gap and interest rate decreases at every quarter. Moreover, the aggressive monetary policy boosts the effects of supply shock on the variability of output gap over time. If the Central Bank of Turkey intends to implement aggressive monetary policy to sustain price stability, the monetary authority should bear in mind that their effects on both the real sector and the short term interest rate will diminish. This study deals with the popular discussion about the aggressiveness of monetary authority in emerging countries with its own distinctive design.
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The aim of this research study is to assess the progress of the food sector companies that received financial aid for investment through the Developmental Laws in the last years (2013-16) of the economic recession in Thessaly Region (Greece), by choosing a random and representative sample of companies. In order to achieve this goal, financial data was collected which would be able to provide us with information in order to study the evolution of the food industry in Thessaly Region (Greece). The statistical analysis of the data was done with the statistical analysis package IBM SPSS Statistics 23. The descriptive statistics on the distributions and frequency diagrams (Histograms) and normal frequencies curves for the percentages of changes were also calculated. To test the significance of the differences between the mean values of the financial statements items, the method of One-Way Analysis Of Variance (One-Way ANOVA) was used. The same method was used to test the mean values of both the changes in amounts and in their percentages. In short, we can say that the percentage changes in Total Assets and Equity the time period 2013-16 are small and concentrated around zero. The same period, we have a significant increase in L/M Debt and Sales, except for a few extreme cases, while the percentage changes in Gross Profit and Profit before Tax are limited. The year 2016 there were significant changes in Taxes and Net Profit from AM2005-16. The collection, processing, and analysis of the financial data of the undertakings were limited to the undertakings which have the obligation to publish their financial data. In recent years, very few studies have been carried out on the effectiveness of investment by private companies subsidized by Greek or European Investment Programs.
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At the end of the year 2013, the Greek Government to encourage the establishment of new enterprises in the agro-food sector announced the application of the program “New Farmers Installation within the financial framework of CAP”. As a consequence, almost 8.000 young people benefited from this program as they received subsidizes up to 20.000€ to establish a new agro-enterprise. This work focuses on the examination of the results concerning those new entrants’ enhancing of production of agro-products. Moral hazards have been created as some of them take advantage of the inefficacy of the program’s control procedures and they contribute almost nothing to the final agro product. The paper is divided to into 2 parts. The literature of the theoretical perspective of the Greek economy is extensive. Taking under mind that Greece is a part of the European Union on the theoretical part are examined CAP’s subsidizes consequences on Greek Agriculture. Then the “New farmers’ installation” program is briefly presented. The theoretical part ends with references to moral hazards creation and corruption in Greece. In the second part, the empirical results presented. The research took place during September 2016 using a formalized questionnaire. The statistical analysis included the estimation of frequencies, percentages, and means, as well as coefficient correlations. According to the findings, it has been supported that financial programs directed to agriculture should be monitored for disbursement. Otherwise, these programs cannot achieve their targets such as the increase of in productivity in the agricultural sector. Moreover, the results of the study are similar to previous researches as Moral Hazards have been created. Taking for granted that the lack of strict controls over the disbursement contributed to the increase in moral hazards, it is proposed that providing subsidies should be accompanied with disbursements only after strict controls. It is also suggested a combination as providing subsidies should only take place on the grants that the amount spent exclusively for rural enterprise liabilities. This paper provides the impetus for the study of moral hazard on rural subsidizes and constitutes primary research.
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By the act of lending banks do not actually intermediate preaccumulated real resources but rather create new financial resources in the form of deposits. Therefore, bank credit needs to be modelled as a monetary phenomenon, which directly fuels domestic demand and inflationary pressures. So far, there have been just a few attempts to model banks as monetary institutions in the DSGE model. In this paper we propose a simple DSGE model, which nevertheless accommodates banks as genuinely monetary institutions and captures banks’ institutional ability to create money. Our model features a small open economy with nominal prices, savers and borrowers and a banking sector. Following an exogenously induced shock to banker’s willingness to lend, the bank does not have to raise deposit rates or significantly increase borrowing from abroad as deposit dynamics closely resembles that of credit, which allows us to analyse real and nominal consequences of bank credit (and money) creation.
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This study aims to measure the impact of the share of non-Ricardian households on fiscal multipliers. We show that the share of non-Ricardian households in Hungary increased significantly after crisis began and explain why the plausible reason for this increase is the higher level of liquidity constraints during crisis. We also show that after crisis, when the share of non-Ricardians in Hungary was very high, the impact of government spending shocks on GDP was almost twice as strong as before the Great Recession. Thus, the results of the study indicate that there is some trade-off between the effectiveness of fiscal policy as a tool of GDP stabilization and household access to the credit market.
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The last twenty years have brought a bulk of inconsistent results on the determinants of business cycle synchronization (BCS). Researchers have usually focused their attention on a limited set of possible determinants, not accounting for model uncertainty. For these reasons, Bayesian Model Averaging has been applied in this paper to the dataset with 43 potential determinants of BCS for the EU. There is strong evidence to claim that migration, exchange rate variability, similarity of production structures, TFP shocks, similarity in exchange rate policy, intra-industry trade, risk sharing, and capital mobility are robust determinants of BCS. Some well-established determinants such as bilateral trade, monetary policy similarity, gravity variables, and participation in a monetary union and free trade area have turned out to be fragile. The structure of trade is more important for BCS than its magnitude, as intra-industry trade and structural similarity are taking explanatory power away from the bilateral trade.
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The article presents the significance of trade for political and economic cooperation between Germany and Russia in the historical and contemporary dimension. The analysis focuses on assessment of the determinants of the role and importance of trade in three phases of German-Russian political and economic cooperation: 1) general determinants and development of cooperation from the end of the World War I in 1918 to the end of World War II in 1945, 2) in the former West Germany in the years 1949–1989 and 3) in the period of the United Germany in the 1990s and in the 21st century. In the periods mentioned above, trade exchange was an quintessential element of the overall GermanSoviet-Russian relations in the political and economic spheres. Germany’s role as the main trading partner of the USSR in the West in the 1970s and 1980s enabled, among other things, the Kremlin’s consent to the peaceful reunification of Germany 1989/1990 and contributed to their strong involvement in the economic transformation of the Russian Federation after 1991. In the second decade of the 21st century, the People’s Republic of China (PRC) became the first trade partner for Russia was, undertaking joint actions to reduce the neoliberal international order with the dominant role of the United States.
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This article discusses how the concept of the Blue Amazon, created by the Brazilian Navy, is a fundamental tool of strategic communications for establishing and consolidating Brazil as a seapower, hence contributing to the construction of a grand strategy narrative in which maritime power becomes vital to the country. The article explains how the concept was created and how it has been used in relation to the principles of maritime strategy and maritime power. Furthermore, this concept contributes to the strategic redefinition of the perception of Brazilian national identity, reincorporating an awareness of the sea as a key element.
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This article brings into discussion the way in which globalization becomes increasingly complex and the economic competitiveness has reached a level never found in history, and why an adaptive reaction from the state is required. Achieving the state's economic security objectives is dependent on its ability to integrate into global and regional structures. The strategic process that allows it to adapt in the geo-economic space is the economic intelligence. History proves it fully. The great global powers have adapted, in their own particular way, the competitive intelligence, and their well-being and power are the fruit of the efficiency of the implementation of these processes. Competitive intelligence has helped Japan recover after World War II, it has also helped France become a great colonial power,while the United States maintains and extends its power globally.
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The main purpose of the article is to verify the hypothesis thatthe erasing of values from economics causes unfavorable social changesleading even to social stratification. Side by side, it will be considered ifhomo neuroeconomicus is already the leading paradigm in economic, andmarketing creates our attitudes, with the aim only to sell, not to distributewares. The article also aims to show the relevance of axiology in economics,because at its metatheoretical level its ontological status constitutesvalues implanted by recognized economists. Meanwhile, contemporaryeconomics tries to create an exact science, disavowing its normativeoutput. The record is mathematical, which evaluative value, emotionallyexcludes man as an important subject of economics. The loss of autotelismin the exemplification of a human being and its natural inclination toparticipate in the economy causes non-exclusivity in participation. The attemptof these changes also led to the creation of homo neuroeconomicus asa model example of a human-consumer who has three tasks: buy, buy, buy.An adequate method to show the issue is to use the descriptive methodto approximate the problem and comparative analysis, which indicatesthat there is no one way to look at the economy and to make it work inreality.
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The Lithuanian Foreign Policy Review’s Editor-in-Chief, Linas Kojala, talks with President of Lithuania, Gitanas Nausėda, on a range of issues from security and economic diplomacy to relations with Belarus and China.
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The most alarmist perspective interprets the Chinese interest in the region in general and Lithuania in particular as an attempt to target the soft underbelly of both the EU and NATO and pursue the long-term “divide and rule” tactics on the European and even Euro-Atlantic dimensions. As the ongoing comprehensive rise of China is primarily driven by economic factors, its interest in Lithuania follows such imperatives and increasingly raises concerns due to their implications for the latter’s own competitiveness, prosperity and security. China is interested in affecting Lithuania’s public and political discourse related to the sensitive topics that it deems to be purely domestic and thus off-limits to foreign countries.
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The need to focus on the fundamentals of state building and strengthening of institutions in all three DCFTAs remains paramount and should be pursued vigorously. Reform efforts and advancement of European integration in the DCFTA countries would be very much strengthened if the European Commission and the EU member states tuned their financial support to needs in a better way than has been so far. Based on the experience of Lithuanian non-governmental organizations, which have been implementing the EU and Lithuanian Development Cooperation and Democracy Promotion Programme supported projects in the EaP countries, small-scale grants might require greater administration, but if properly geographically distributed can deliver results similar to the bigscale projects.
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