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1
Dakić, Milojica. "Global Financial Crisis – Policy Response." Journal of Central Banking Theory and Practice 3, no. 1 (January 1, 2014): 9–26. http://dx.doi.org/10.2478/jcbtp-2014-0002.
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Abstract Six years after the outbreak of the financial crisis that had shaken the global financial system, experts and analysts all over the world continue discussing the effectiveness, scope and adequacy of mechanisms and measures implemented in the meantime, as well as the adequacy of the underlying theoretical concept. A global consent has been reached on ensuring financial stability through the interaction of monetary, fiscal and prudential policy to ensure the necessary macroprudential dimension of regulatory and supervisory frameworks. The USA crisis spilled over to Europe. Strong support of governments to bail out banks quickly resulted in sovereign debt crises in some peripheral EU Member States. Fiscal insolvency of these countries strongly shook the EU and increased doubts in the monetary union survival. The European Union stood united to defend the euro and responded strongly with a new complex and comprehensive financial stability framework. This supranational framework is a counterpart to the global financial stability framework created by the G20 member countries. Starting from the specific features of the monetary policy whose capacities are determined by euroisation, available instruments and resources for preventive supervisory activities, as well as the role of the government in crisis management, Montenegro created a framework for maintaining financial stability and prescribed fostering and maintaining financial stability as the main objective of the Central Bank of Montenegro.
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Schnabl, Gunther. "Monetary Policy and Structural Decline: Lessons from Japan for the European Crisis." Asian Economic Papers 14, no. 1 (January 2015): 124–50. http://dx.doi.org/10.1162/asep_a_00327.
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Japan experienced a boom-and-bust cycle in the real estate and stock markets almost 20 years earlier than Europe. Since the bursting of the Japanese bubble economy, the country has fallen into a deep recession and has experimented with crisis therapies in the form of unconventional monetary expansion, Keynesian fiscal stimulus, and recapitalization of financial institutions. Japan reached a low interest rate environment in the mid 1990s and has accumulated an exceptionally high level of public debt during more than two decades of economic stagnation. This paper compares the boom-and-bust cycles in Japan and Europe with respect to the reasons for excessive booms, the characteristics of the crises, and the (potential) effects of the crisis therapies. It is argued that in both Japan and Europe the consequences of expansionary monetary and fiscal policies include the hysteresis of a low-interest rate and high government debt environment, the erosion of the allocation and signaling functions of the interest rate, the gradual quasi-nationalization of financial institutions, as well as gradual real income losses. The economic policy implication for Europe and Japan is the timely exit from crisis therapies in the form of excessively expansionary monetary and fiscal policies.
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Panico, Carlo, and Francesco Purificato. "European Policy Reactions to the Financial Crisis." STUDI ECONOMICI, no. 100 (October 2010): 191–218. http://dx.doi.org/10.3280/ste2010-100011.
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The paper examines how economic policy have been carried out in Europe during the recent financial crisis. It focuses on the changes introduced in the operational procedures of monetary policy in the euro area in 2007 and 2008, pointing out that the objective of the authorities has been to respond to the liquidity needs of the monetary financial institutions, avoiding to loose control over M3. The paper argues that the interventions of the Eurosystem have produced satisfactory results and underlines the problems generated by the fall in productive activity and the need to face them with fiscal policies instruments. The inefficient forms of coordination between monetary and fiscal policies and the management of the government debt in some euro area countries are seen as the main sources of preoccupation for the evolution of the crisis.
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Chen, Hsiao-Yin, Cheng-Few Lee, Tzu Tai, and Kehluh Wang. "Fiscal and Monetary Policies in Reaction to the Financial Tsunami by the Taiwanese Government." Review of Pacific Basin Financial Markets and Policies 14, no. 01 (March 2011): 153–69. http://dx.doi.org/10.1142/s0219091511002172.
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The main purpose of this paper is to investigate the impact of the 2007 financial tsunami on the Taiwanese financial market. We find that, although significant for banks, security firms, and insurance companies, the effect was relatively lower if compared with that in Europe and the United States. In addition, we present fiscal and monetary policies issued by the Taiwanese government in reaction to the global financial crisis. These policy measures focused on stabilizing the financial market, reducing the level of unemployment, and creating more lending opportunities in support of Taiwanese companies. We also discuss the policy measures of the US government and other Asian countries in relation to the global financial crisis. Finally, we provide some suggestions to improve financial supervision and enhance financial reforms in Taiwan.
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Veggeland, Noralv. "European Capitalism Developments." Journal of Economics and Technology Research 1, no. 1 (March 11, 2020): p25. http://dx.doi.org/10.22158/jetr.v1n1p25.
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In Europe, where the financial crisis was transformed into national debt crises in several countries, the current phase of the denial cycle marked by an official policy approach predicated on the assumption that normal restored through a mix of austerity, privatization and less state involvement came through (anti-Keynes). The other view is this. Governmental investments – and financial decision-making to regulate the effective demand in national economies is based on the basic principles introduced by John Maynard Keynes in his ‘General Theory of Employment, Interest and Money (1936), The solution of the temporary crisis of the democratic capitalism might be linked to Keynes by his successors the neo-Keynesians. However, the representative democracy has become weak and fragmented, and under control of international powerful multinationals. The citizens not any longer look upon their national government as their representatives but as representatives for interest of foreign states and international organizations. Poor public politics and policies are what come out of it.
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Bijan, Aref, and Ehsan Ejazi. "Investigating the role of the International Monetary Fund in the process of resolving financial crises: case study of Greece." RUDN Journal of Economics 29, no. 3 (December 15, 2021): 524–36. http://dx.doi.org/10.22363/2313-2329-2021-29-3-524-536.
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The economic crisis in the United States and its spread to continental Europe caused a financial crisis in European stock markets, which in turn reduced production in Europe, resulting in rising unemployment, that eventually led to protests against the current economic situation. These political unrests have prompted international and regional governments and financial institutions such as the International Monetary Fund, the World Bank and the European Central Bank to find a way to end this severe financial crisis. Greece, as one of the EU member states that has been affected by this global crisis, has made efforts to improve its economic situation. The main question of this study is to what extent the International Monetary Fund was able to help resolve the financial crisis in Greece? The hypothesis is that due to the conditionality of financial aid from the International Monetary Fund to Greece in crisis and Greeces lack of attention to the full implementation of austerity programs, such financial aid has not been able to save the Greece economy from financial crisis. One of the aims of this study is to what extent developing countries can rely on IMF recommendations to overcome the financial crisis. The aim of the research is to find out why International Monetary Fund could not adopt proper monetary and financial policy to settle the financial crisis in Greece. Moreover, the reasons behind failed attempts of Greeces policymakers to implement IMFs austerity measures in their country are sought.
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Bijan, Aref, and Ehsan Ejazi. "Investigating the role of the International Monetary Fund in the process of resolving financial crises: case study of Greece." RUDN Journal of Economics 29, no. 3 (December 15, 2021): 524–36. http://dx.doi.org/10.22363/2313-2329-2021-29-3-524-536.
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The economic crisis in the United States and its spread to continental Europe caused a financial crisis in European stock markets, which in turn reduced production in Europe, resulting in rising unemployment, that eventually led to protests against the current economic situation. These political unrests have prompted international and regional governments and financial institutions such as the International Monetary Fund, the World Bank and the European Central Bank to find a way to end this severe financial crisis. Greece, as one of the EU member states that has been affected by this global crisis, has made efforts to improve its economic situation. The main question of this study is to what extent the International Monetary Fund was able to help resolve the financial crisis in Greece? The hypothesis is that due to the conditionality of financial aid from the International Monetary Fund to Greece in crisis and Greeces lack of attention to the full implementation of austerity programs, such financial aid has not been able to save the Greece economy from financial crisis. One of the aims of this study is to what extent developing countries can rely on IMF recommendations to overcome the financial crisis. The aim of the research is to find out why International Monetary Fund could not adopt proper monetary and financial policy to settle the financial crisis in Greece. Moreover, the reasons behind failed attempts of Greeces policymakers to implement IMFs austerity measures in their country are sought.
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Frigerio, Marco, and Daniela Vandone. "A firm-level analysis of development banks in Europe." Vierteljahrshefte zur Wirtschaftsforschung 89, no. 3 (July 1, 2020): 61–77. http://dx.doi.org/10.3790/vjh.89.3.61.
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Summary: We perform a cross-country firm-level analysis of all development banks headquartered in Europe. The goal is to investigate their financial profile and efficiency characteristics and to shed light on some crucial issues, which may underline their capacity to raise external sources of finance in addition to capital contributions from shareholder governments (e. g. their capital generation and cost efficiency, the quality of their loan portfolio, the composition of their sources of finance). A financial statement analysis of their accounting features is cogent in the light of the relevance attributed by European policy makers to the economic and financial sustainability of development banks, given the key role they have been called to play in the European economy since the 2008 crises. Indeed, although development banks have goals that go beyond profitability, they need to combine their socio-economic goals with conditions of efficiency and profitability, in order to “stand on their own feet” and secure a reasonable level of financial strength and stability. We first map all development banks headquartered in Europe. We then collect financial information within the reference period 2008 – 2018 for the whole population of development banks. We also split the sample according to size, in order to assess their dimensional heterogeneity. This study provides policymakers with quantitative information on the economic and financial profile of contemporary promotional financial institutions, which may be valuable in the current debate on their role and relevance in Europe.
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UKHNAL, Nataliia. "The specifics of fiscal policy under the conditions of pandemic shock." Naukovi pratsi NDFI 2021, no. 2 (November 15, 2021): 96–113. http://dx.doi.org/10.33763/npndfi2021.02.096.
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The development the conceptual principles of fiscal policy is impossible without understanding the consequences of the global epidemiological crisis and assessing the actions of governments aimed at minimizing existing problems and preventing a potential negative impact on the national economy. The article evaluates the peculiarities of the formation of anti-crisis fiscal and monetary measures, to which more than 10% of world GDP is directed , in the context of global pandemic recession and challenges caused by the lack of preparedness in healthcare facilities and systems. The peculiarity is revealed that in the developed countries there is a wide fiscal space in comparison with the developing countries. The purpose of the article is to show the features of socio-economic processes and main measures of financial policy aimed at minimizing the negative consequences of the pandemic shocks. The scientific novelty is to identify ways to strengthen the resilience of the financial system and government support for entrepreneurship in Eastern Europe and the Caucasus in the context of necessary measures and restrictions related with the COVID-19 pandemic. The tools of budget, tax and social support, creation of stabilization packages, liquidity programs for commercial banks, mobilization of financial resources through the creation of funds, in particular through international cooperation, are considered on the example of the Eastern Partnership countries. It is substantiated the necessity of using by the national governments of anti-crisis measures of fiscal policy and the creation of mechanisms for emergency mobilization of financial resources and material resources to increase competitiveness and long-term demand, providing compliance with the priorities of environmental safety and objectives of social justice. Given climate change and environmental degradation, further search is needed to increase the resilience of the economy and society to future shocks.
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Cevik, Serhan. "Policy coordination in fiscal federalism: drawing lessons from the Dubai debt crisis." International Journal of Emerging Markets 14, no. 5 (December 2, 2019): 899–915. http://dx.doi.org/10.1108/ijoem-09-2018-0479.
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Purpose With the global financial crisis, the United Arab Emirates (UAE) experienced its own unraveling of macro-financial imbalances and thus presents an interesting case to analyze the underlying fragilities in federal governments. The purpose of this paper is to investigate the evolution of fiscal policy in the UAE at consolidated and subnational levels in the run-up and after the crisis, and provide pertinent insights about the importance of policy coordination in other federal fiscal systems – and monetary unions, as brought to light by the recent developments in Europe. Design/methodology/approach In measuring the cyclicality of fiscal balances at the consolidated and emirate level in the UAE, this paper uses the non-hydrocarbon primary budget balance, excluding interest spending and hydrocarbon revenues, investment income of the sovereign wealth fund, scaled by non-hydrocarbon GDP. The cyclically adjusted primary balance is estimated by deducting cyclical components from the actual balance. It is important to correct for cyclical changes because the budget balance tends to vary endogenously according the state of the economy – deteriorating during a bust and improving in a boom. Furthermore, since hydrocarbon revenues are dependent on the erratic behavior of hydrocarbon prices, the cyclically adjusted non-hydrocarbon primary balance is computed, using the elasticity of non-hydrocarbon revenues and primary expenditures relative to non-hydrocarbon GDP, to assess whether fiscal policy exacerbates economic fluctuations in the UAE at the aggregate and emirate levels. Findings The empirical findings show that procyclical fiscal policies prior to the crisis reinforced the financial sector cycle, exacerbated the economic upswing, and thereby contributed to the build-up of macro-financial vulnerabilities. The paper also sets out policy lessons to develop a rule-based fiscal framework that would help strengthen fiscal policy coordination between the various layers of government and ensure long-term fiscal sustainability and a more equitable intergenerational distribution of wealth. Originality/value The lack of fiscal policy coordination among subnational governments complicates macro-economic management at the federal level. Since the UAE has a pegged exchange rate regime and consequently a limited scope to use monetary policy, the burden of macro-economic stabilization falls on fiscal policy. Accordingly, this paper shows that procyclical fiscal policies prior to the crisis reinforced the “financial accelerator” effect, exacerbated the economic cycle, and thereby contributed to the build-up of economic and financial vulnerabilities in the UAE.
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Naidu, G. N., and Askar Choudhury. "Sovereign Debt Markets in Euro-zone: Implications for Capital Markets Integration." Journal of Finance Issues 10, no. 1 (June 30, 2012): 12–21. http://dx.doi.org/10.58886/jfi.v10i1.2325.
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This paper examines the impact of the financial crisis of 2007-2008 on the Euro-zone markets integration by analyzing their sovereign debt markets convergence/ divergence to see if the Euro-zone stock markets are moving towards integration. As economic integration of Euro-zone proceeds under the banner of the Single Market Europe, it is vital to observe the degree of economic harmonization that exist in these member countries at different economic cycles. Thus, the purpose of this research is to explore the yield spreads on government debt across the Euro-zone nations at different time periods to observe if the spreads display any divergent trend over time. Analysis suggests that, time period 2008-2010 is a significant predictor for the government debt volatility of these countries financial stability and thus their economy’s strength. This indicates that the country’s yield spread and thus government debt is time dependent. Therefore, a country’s financial stability and thus their economic status (or level) would depend on the economic cycle. However, results also indicate that financial crisis has impacted some of the countries more than the others. Thus, exhibiting differences in economic stability (or strength) among the countries and therefore, this has important implications for the economic policy makers in the Euro-zone countries.
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Holland, Stuard. "Not ‘Rolling Back the State’." Symphonya. Emerging Issues in Management, no. 1 (2021): 23. http://dx.doi.org/10.4468/2021.1.03holland.
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One of the premises of rising neoliberalism from the 1980s had been the claim of Ronald Reagan that government is the problem not the solution, readily endorsed, in parallel, by Margaret Thatcher on coming into government. Drawing on a range of international examples this paper shows that this was utterly uninformed, that deregulation of finance in the US led to the worst financial crisis in 2008 since 1929 and that Thatcher's scrapping of the 1970s Labour governments' industrial policy instruments led to major de-industrialisation in the UK which influenced the 'No' vote in the 2016 referendum on whether Britain should remain in the European Union. While the US nonetheless pursued an industrial policy by stealth which promoted a range of advanced technology corporations and that Germany, embodying liberal market principles after WW2, recently has endorsed the case for not only a German but also European industrial policy and led in advocating a European Green New Deal modelled on the Roosevelt New Deal which recovered the US from The Depression of the early 1930s and convinced Truman to support the Marshall Aid programme that also recovered Western Europe after the cataclysm of WW2.
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Suryani, Desak Sinta Putu, and Abdul Razaq Cangara. "National Identity and Migration Policy Dynamics: Analysing the Effect of Swedish National Identity on Its Granting Asylum Policy to Syrian Refugees in 2013." Hasanuddin Journal of Strategic and International Studies (HJSIS) 1, no. 1 (December 28, 2022): 1–16. http://dx.doi.org/10.20956/hjsis.v1i1.24804.
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The Syrian conflict in 2011 has inevitably led to the massive forced migration of asylum seekers and refugees. Most of them fled to neighbouring and several countries in Europe. As a result of the European Union (EU) 's open border policy, their influx into Europe was reckoned a problem for many European countries due to increasing crimes and threats to its members' national security. Some European Union countries chose to be cautious by refusing or only providing financial assistance. Contrastingly, as an EU member state, Sweden received thousands of Syrian refugees until 2013. On October 3, 2013, the Swedish government announced an asylum policy of guaranteed housing provision and the right to bring families to Syrian asylum seekers until they obtain UNHCR refugee status. Such granting asylum policy to Syrian refugees shows differences in the identity of social security construction both in the society and its decision-makers compared to other EU countries. This article exposes the identity influence on the Swedish government's decision to grant asylum to Syrian refugees in 2013. This article employs the "aspirational constructivism" theory by Anne Clunan, arguing that a state's policy is based on a national identity sourced from society's historical reflections and the political elite's future aspirations. This article finds that Swedish society's history experienced cultural homogenization, known as a multicultural country, and the Social-Democracy and folkhemmet ("Home for the People") idea of the political elites resulted in the granting of asylum policy to Syrian refugees in October 2013.
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Rosaria, Rita Canale, and Napolitano Oreste. "The Recessive Outcomes of Emu Policies: Analysis of the Italian Experience, 1998-2008." STUDI ECONOMICI, no. 104 (January 2012): 89–111. http://dx.doi.org/10.3280/ste2011-104005.
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The EMU assigns a marginal role to economic policy and relies on the idea that, if prices are kept constant, there will be an automatic convergence towards long-run equilibrium income. These beliefs represent the theoretical underpinnings of fiscal and monetary policy strategies in Europe. In order to highlight the weakness of these foundations, this paper evaluates empirically the effects of public expenditure and interest rate setting on equilibrium income in Italy from 1998 to 2008. Our analysis supports the conclusions that government spending has a positive impact on national income while monetary policy strategy has a negative impact. Moreover, the high level of debt does not produce negative effects on GDP. Finally, at a time of financial crisis, these results are reinforced for fiscal policy, but weakened for monetary policy. The paper finally states that the EMU's rigid rules for both fiscal and monetary policy have recessive outcomes.
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BARTEL, FRITZ. "Fugitive Leverage: Commercial Banks, Sovereign Debt, and Cold War Crisis in Poland, 1980–1982." Enterprise & Society 18, no. 1 (June 14, 2016): 72–107. http://dx.doi.org/10.1017/eso.2016.19.
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This article examines a familiar Cold War event, the Polish Crisis of the early 1980s, but from an unfamiliar perspective: international financial history. Historians have yet to examine how the growing international activity of Western commercial banks and the Eastern Bloc’s heavy borrowing on international capital markets during the 1970s influenced the course of the late Cold War. This article covers the history of the Eastern Bloc’s largest borrower—Poland—and its road to sovereign default in 1981. It examines how financial diplomacy among banks, communist countries, and the U.S. government catalyzed the formation of the labor union Solidarność (Solidarity). Ultimately, this article speaks to an important theme in the history of U.S. capitalism since World War II; namely, how the construction of global finance influenced U.S. foreign policy. The end of the Cold War in the fall of 1989 was the result not only of communism’s loss of legitimacy among the peoples of Eastern Europe, but also its loss of creditworthiness on global financial markets.
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Brondoni, Silvio. "Global Competition & State Intervention. The Genesis of Japan’s Motorcycle Global Leaders: Honda, Suzuki, Kawasaki &Yamaha." Symphonya. Emerging Issues in Management, no. 1 (2021): 7. http://dx.doi.org/10.4468/2021.1.02brondoni.
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Across Europe, businesses and policy makers are now worried about the future industries dominated by U.S. and Chinese companies. Since the financial and economic global crisis in 2007, western industrialized countries experienced a return to stronger state interventions in the business. States, which had previously been reluctant to intervene, implemented intervenes for individual companies or industrial measures for whole sectors. Moreover, the pandemic has driven Asian countries to double down on the tradition of state intervention. The specific causes of the coronavirus global recession, however, impose a radical and targeted solution. Governments should enter in key-sectors and cover directly wages and maintenance costs for critical businesses facing shutdown. In this context of Government direct involvement in global business, it is very useful to remember the lesson from the genesis of Japan’s motorcycle global leaders: Honda, Suzuki, Kawasaki and Yamaha.
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Verplaetse, Alfons. "Van devaluatie tot euro : Het economische en meer bepaald het monetaire beleid van België 1980-2000." Res Publica 42, no. 1 (March 31, 2000): 3–21. http://dx.doi.org/10.21825/rp.v42i1.18526.
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This article on the evolution of economic and monetary policy in Belgium, which turned the "sick man of Europe" into one of the stronger European economies and allowed it to enter into EMU, stresses the role of the monetary authorities as a stabilising force in Belgium. It gives a detailed analysis of how these changes have allowed Belgium to regain the confidence of both monetary authorities and international investors after the devaluation of 1982. The policy responses to the oil shock at the beginning of the seventies broke with the policy mix which had until then been practised. Both the wage formation process andf iscal policy clearly spiralled out of control, the chiefresult of which was a drastic loss in international competitiveness. As a consequence, the current account showed a large deficit, the traditional level at which public deficit had stood rose dramatically, unemployment exploded and the financial structure of most corporations became fragile.A drastic realignment of economic policy started with the devaluation of the Belgian franc in 1982. This devaluation was accompanied by a series of measures aimed at preventing the inflationary pressures from triggering further devaluations, and hence at restoring credibility. These measures included restrictive fiscal policies (tax increases and cuts inpublic spending) and real wage cuts. By 1987 this recovery policy had successfully restored Belgian competitiveness, reduced the government deficit and restored the balance ofpayments equilibrium. Although public policies became less restrictive during the period 1988-1993, the central bank continued to gain international credibility. Significant stepsin this process were the abolition of the dual exchange rate system, the decision to peg the Belgian franc to the most stable currency in the ERM (i.e. the German mark) and the reform of the money markets in Belgium. The latter in particular helped to increase the central bank's independence, since this reform implied total control by the central bank over short term interest rates, it reduced significantly the automatic credit lines of the fiscal authorities with the central bank and it stipulated that revaluations of gold reserves should no langer be used to finance government budget deficits. By 1992 international credibility had been restored to such a degree that the Belgian franc became a strong currency during the 1992 crisis, obliging the central bank to come to the rescue of the weaker currencies under attack in September 1992 with a speculative inflow of capital of about 200 billion BEF. However this restored credibility continued to be fragile, as became evident during the 1993 exchange rate crisis when the Belgian franc was vigorously attacked by international speculation.The insufficient alignment of public and monetary policies proved to be at the heart of the financial problems of the 1993 crises. The Belgian government relaunched its policies of budgetary restriction and wage moderation, brought together in what was called the 'Global Plan'. This realignment of public policies to monetary policy swiftly restored the credibility of the Belgian franc, so that as early as January 1994 the Belgian franc converged to its central parity with an interest differential vis-à-vis the German mark of only about 2 %. This differential declined progressively. Indeed the global plan restored the confidence of the investors in Belgian economic policy. Financial markets now fully believed in the entry of Belgium into EMU and from then on no major difficulties were to arise.
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Ponomareva, Karina. "Country Note: Legal Framework of Direct Taxation in the Eurasian Economic Union: Specific Ways of Harmonization and Comparison with Existing European Models." Intertax 48, Issue 6/7 (June 1, 2020): 659–86. http://dx.doi.org/10.54648/taxi2020059.
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The article considers directions of harmonization in the area of direct taxation in the Eurasian Economic Union (EAEU). The article also examines the actions of the EAEU Member States on the implementation of the Base Erosion and Profit Shifting (BEPS) Action Plan in national tax legislation. Nigeria, local government, local people, tax, taxing powers, impose tax, collect tax, federalism, socio-legal problems; lack of financial authority. The author comes to the conclusion that the EAEU Treaty and other supranational acts show few limits of tax harmonization and mainly in the area of indirect taxation. In the area of direct taxation, the establishment of the principle of non-discrimination and convergence in the area of taxation of personal income are elements of harmonization in the area of direct taxation. At the national level, Member States have set the same taxes, including corporate income tax and personal income tax. However, in the absence of supranational acts of secondary law, national tax systems differ significantly. This is caused by the fact that the area of direct taxation is highly sensitive from the positions of tax sovereignty of Member States. The important part of the survey is the comparative study. The European Union (EU) has become the most comprehensive form of interstate integration. However, financial and political crises in Europe have shown the need to give up some of the sovereign rights of Member States in order to ensure a coherent policy. The European experience is of great theoretical and practical importance for creating new legal mechanisms of tax regulation in the EAEU. The models of functioning of the EAEU Court and of the European Court of Justice (ECJ) in the area of taxation are also compared in the article. Nigeria, local government, local people, tax, taxing powers, impose tax, collect tax, federalism, socio-legal problems; lack of financial authority.
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YIN, Kedong, Zhe LIU, and Peide LIU. "TREND ANALYSIS OF GLOBAL STOCK MARKET LINKAGE BASED ON A DYNAMIC CONDITIONAL CORRELATION NETWORK." Journal of Business Economics and Management 18, no. 4 (August 27, 2017): 779–800. http://dx.doi.org/10.3846/16111699.2017.1341849.
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The paper analyses the trend of global stock market linkages via daily data of 51 stock indices spanning the period 22 July 2005 to 30 June 2016 which covers four regions: America, Europe, Asia Pacific and Africa. A dynamic conditional multivariate generalized autoregressive conditional heteroskedasticity (DCC-MVGARCH) approach was used to calculate dynamic correlation coefficient in order to construct the volatility networks. The methods of minimum spanning tree (MST) and low pass filter were for the first time applied to analyze the variable periodicity of the comovement. The original contribution of this paper is that contrary to previous works, financial events such as Quantitative Easing (QE) and Bailouts are accounted for rather than only crisis factors such as the 2008 financial crisis and the European Debt crisis. The main findings of the paper are as follows: (1) Financial crisis promotes and strengthens global stock markets linkage in the short run; (2) Linkage cycles post crisis are significantly short, due to the effect of monetary policy spillover effects caused by QE from developed to developing countries; and (3) European stock markets are the information transmission hub for global stock market. The research conclusions would be significant for both government to regulate markets as well as for investors to diversify risks.
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Kuznetsova, Nataliya B. "Competitiveness of Ukrainian talents in world ratings." Socio-Economic Problems of the Modern Period of Ukraine, no. 1(153) (2022): 45–53. http://dx.doi.org/10.36818/2071-4653-2022-1-7.
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Talents become a key determinant of sustainable economic development under the condition of a balanced and effective governmental policy aimed at their cultivating, developing, and retaining. Countries that accumulate a critical mass of such talent will be able to quickly overcome existing crises, actively innovate, and ensure progressive economic and social development. The article identifies the role and importance of talents to ensure the competitiveness of the national economy and its growth. The competitiveness of talents from different countries, including Ukraine, was assessed according to two influential rankings – IMD World Talent Ranking and The Global Talent Competitiveness Index (GTCI). The study of both rankings helps to identify the TOP-10 countries in the world with the best indicators of talent development, as well as Ukraine’s positioning among the countries of the world and Eastern Europe. Ukraine’s talent assessment according to IMD World Talent Ranking shows that with relatively high investment in talent development, Ukraine remains unattractive to foreign and domestic talent with a relatively low quality of skills and competencies of the existing workforce, which indicates low efficiency of measures taken by the government and state financial management on talent development. According to GTCI, Ukraine has the best position in the lower-middle-income countries in terms of both the overall competitiveness index and its criteria but occupies the lowest position in Eastern Europe. The country is characterized by lasting low positions in the Input pillars of the GTCI, including its two components – Enablers and the policy of attracting talent to the country (Attract), indicating low activity of government and business in creating a favorable environment for talent development. Based on the results of the study, the author identifies the factors that affect the competitiveness of talent in Ukraine and offers basic measures to overcome the skills shortage and create a favorable environment for the development and attraction of talent in Ukraine.
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LYUTY, Ihor, and Yuliia TERES. "DEBT POLICY IMPLEMENTATION IN EU COUNTRIES: LESSONS FOR UKRAINE." WORLD OF FINANCE, no. 4(57) (2018): 7–19. http://dx.doi.org/10.35774/sf2018.04.007.
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Introduction. The implementation of debt policy in the EU countries is associated with a range of problems, in particular, rising social spending, and increasing budget deficits. In recent years, Member States have had a negative impact on the debt crisis, which is primarily due to unbridled fiscal policies of individual countries and the banking crisis. Purpose. The article is devoted to issues of implementation of debt policy in the EU countries and the problems of overcoming the consequences of the debt crisis, which began in 2008 and extends to today. An estimation of the possibilities of using this experience in Ukraine is made considering the fact that the country is on the verge of a debt crisis. Results. It has been determined that the sovereign debt crisis is a crisis of confidence for the EU, in particular the euro zone. This required adjusting both the socio-economic and financial policies of the EU. It can be argued that the Stability and Growth Pact did not take place and that now Europe needs to form a qualitatively new budget system that could more effectively cope with the adverse economic consequences or even the failure of a Member State to fulfill its obligations. It has been determined that one of the main items of budget expenditures of the European Union countries is government debt service costs. Public debt management, above all, is carried out through government debt securities. There is a tendency to reduce the share of shortterm public debt and increase the long-term, which provides reduction of budget expenditures for servicing public debt. In particular, in some EU countries there are strict rules that determine the conditions for external borrowing, for example, new loans should not exceed the annual amounts of debt to be repaid. Conclusions. It has been established that a number of measures have been implemented in the EU countries to address the consequences of the debt crisis, in particular: diversification of sources of state debt financing and optimization of terms of circulation of government debt securities; fiscal consolidation; increase maturity of debt obligations and optimize the structure of the public debt portfolio. It is concluded that the measures taken by the EU countries to overcome the consequences of the debt crisis may be useful for Ukraine and, in fact, is a step-by-step guide for the presentation of crisis phenomena, taking into account positive and negative experiences.
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Riy, Grygoriy. "Approaches of Southern European countries in supporting Ukraine after the full-scale Russian invasion." European Historical Studies, no. 22 (2022): 104–24. http://dx.doi.org/10.17721/2524-048x.2022.22.7.
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The article is devoted to reviewing the government’s response of Southern European countries (Italy, Spain, Portugal and Greece) to the full-scale invasion of Russia in Ukraine on 24 February 2022, which is based on the analysis of the researches, analytical papers, and official reports of the state authorities and mass media. Coverage of this topic is explained by the necessity of the full exploration of the Sothern European governments’ key approaches in supporting Ukraine in the struggle with the Russian army, as well as, discovering some new perspectives, using the comparative and transnational methodology. It is defined the term “Southern Europe”, and also outlined the main historiographical interpretations of the countries of the region. Preference is given to a pragmatic approach for characterising the countries of Southern Europe. The central studies of Ukrainian-Italian, Ukrainian-Spanish, Ukrainian-Portuguese and Ukrainian-Greek relations, official reports and mass media used in the study are analysed. It also analyses and compares the changing Southern European governments’ attitudes towards their supporting Ukraine after the Revolution of Dignity, the illegal annexation of Crimea, and the beginning of war in Donbas in 2014, with the united international response after the full-scale Russian invasion on 24 February 2022. In general, the governments of Italy, Spain, Portugal and Greece changed completely their policy of supporting or non-supporting Ukraine in the war. If after 2014 they tried to be pragmatic in the question of cutting ties with the Russian Federation in their foreign policy activity, then after the full-scale invasion in 2022 they strongly condemned Putin’s regime and agreed to provide assistance to Ukraine to the extent of their military and financial capabilities. The study found that the assistance of Southern European countries has been provided on the Atlantic (through NATO) and European (through EU) levels, as well as national. Defence ministers of the governments of Southern Europe are among the members of the “Ramstein” meetings, where the provision of military aid to Ukraine is coordinated. The countries of the region have so far given priority to humanitarian, financial aid and lethal weapons assistance (but not heavy ones), and have also accepted a large number of Ukrainian refugees. The assistance provided at each of the levels is illustrated by specific examples. Otherwise, Russian influence on domestic policy, national populistic parties and single members of the government or parliament is still strong. For instance, the Italian governmental crisis that happened in the mid-summer was the result of the unpopular and strong position of the prime minister Mario Draghi in his unwavering support of Ukraine. The countries of the region also see the Russian-Ukrainian war as an opportunity for them to strengthen their influence in the Mediterranean.
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DANYLYSHYN, Bohdan, and Yevhen STEPANIUK. "NECESSARY STEPS FOR THE DEVELOPMENT OF UKRAINE'S ECONOMY AND BANKING SECTOR DURING AND AFTER THE CORONAVIRUS CRISIS." Economy of Ukraine 2021, no. 1 (January 24, 2021): 40–53. http://dx.doi.org/10.15407/economyukr.2021.01.040.
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The COVID-19 epidemic in Ukraine and around the world has led to unprecedented restrictive measures by countries to counter the spread of viral diseases and support national health systems. At the same time, the quarantine measures introduced in Ukraine rather exposed and deepened the negative trends in the economy, which have been observed since the second half of 2019. In the first nine months of 2020, Ukraine\\\\\\\\\\\\\\\'s real GDP fell by 5.4% and consumer inflation last year was below the target range of the NBU, which indicates signs of full-fledged stagnation in the real sector of the economy. The efficiency of the financial intermediation and monetary transmission in Ukraine remains low. The stagnation of bank lending has been going on for the third year in a row, and the measures taken by the NBU to stimulate the economy have not been effective enough. The loan-to-deposit ratio is following the downward trend since 2015. The risk of lower revenues of the state budget of Ukraine and increasing the cost of government borrowing significantly complicates the implementation of state programs to support the economy. The lack of sufficient fiscal space to finance public expenditures at an affordable cost puts Ukraine on an unequal footing with the countries of Central and Eastern Europe in the context of overcoming the crisis. In order to counter the COVID-19 crisis, countries use a combination of government fiscal mechanisms with monetary and macroprudential instruments of central banks. Given the risk of a vicious cycle of deterioration of the financial condition of the banking and corporate sectors in Ukraine, authors justified a comprehensive approach to improving public economic and financial policy, which will synergize the effect of the measures taken and ensure long-term sustainable growth of Ukraine's economy based on effective credit support of the banking system.
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GUDZ, PETER, MARYNA GUDZ, and BARBARA DĄBROWSKA. "COMMON POLICIES OF THE EUROPEAN UNION IN THE SPHERE OF INDUSTRY: PROBLEMS AND CHALLENGES IN THE NEW REALITY OF POSTPANDEMIC." Economic innovations 23, no. 3(80) (August 20, 2021): 85–100. http://dx.doi.org/10.31520/ei.2021.23.3(80).85-100.
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Topicality. The urgency of studying the problems and challenges of the European Union's common industrial policy in the post-pandemic is due to the need to overcome the recession caused by the epidemic crisis and find innovative ways and means to transform European economies to rebuild the economy for the welfare of citizens and environmental security. Another prerequisite for the intensification of industrial policy as a driver of development of the EU common market is the realization of competitive advantages over the economies of the United States and China.Aim and tasks. The aim of the work is to analyze the problems and general challenges of the European Union's industrial policy in the new realities after the pandemic. The COVID-19 crisis has created many problems and posed many challenges to the European Union, but this is not the first crisis it has faced. The paper analyzes the challenges that have arisen during the measures taken to correct the economic downturn, as well as plans for the recovery and development of the European Union, including on the basis of digitization of the common industrial policy.Research results. The day, the genesis of the new, the fourth stage of the development of the industrial policy of the European Union has been designated. Established, according to the main method of industrial policy, and at the same time, 24 industrial halls of the 27 countries ЄC to improve the competitiveness of the European industry, as a step towards the development of the age of the mainstream of work. It was approved by the tools for the implementation of the industrial policy and criteria and indicators of evaluation and development. Sectoral analysis of industry, allowing you to camp for 2018 p. advanced development of machinery and equipment for the indicator of additional costs for production of coke and products of naphtha processing, automobiles, hairstyles and applications, industrial production of metal products for machinery. An analysis of the indicator of security to the given variability in the industrial spheres has taken into account the tendency to the concentration of security in the five countries of the world, some of the economies of Nimechchin. Analyzed the Eurocomisin's praise for April 2020. The plan for the development of Europe and the plan for the middle of the initial ones is the concept of industrial ecosystems. The concept of Europe is a light leader and ecology of the economy, realizing the industry and economy of the state government, the energy and economics of the program “Green Ladies”, as well as the economics of the economy.Conclusion. Problems and directions of overcoming challenges, determined by coronary crisis in industry and economy in general are identified: assistance in resumption of activity of industrial enterprises, coordination of partnership principles, limitation of pandemic expansion, preservation of jobs, tax benefits and credit policy of national banks aimed at investment development, financial assistance governments to support small and medium-sized businesses, assistance to relevant sectors of economic activity. The common industrial policy of the European Union covers many areas. Therefore, it is known that in times of the COVID-19 pandemic, the common industrial policy will face many challenges and problems. The article highlights not only the difficulties that the European Union had to overcome, but also the measures and measures it has taken to solve these problems. Putting the safety of its citizens first, the European Union has temporarily suspended its common industrial policy to focus on priorities. The most important aim was to help the most needy Member States and to support the economic sectors most affected. In addition, the Union has also launched a ten- action plan to rebuild Europe. The reconstruction plan for Europe allowed the European Union authorities to focus on the original goals of the Union, thus putting the new industrial strategy for Europe into effect. The European Council plans not only to increase the global competitiveness of its industry as well as its autonomy and resilience, but also to increase the resilience of the single market and ensure the leading role of the EU in the ecological and digital transformation.
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Karužaitė, Daiva. "Higher Education Changes in Great Britain in XX–XXI centuries." Pedagogika 117, no. 1 (March 5, 2015): 16–32. http://dx.doi.org/10.15823/p.2015.064.
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The article reveals development and essential changes of higher education in Great Britain in XX–XXI centuries.
During last century Great Britain higher education system has changed dramatically – from elite higher education in the beginning of XX century, which was available for very small part of society, to mass higher education with variety of institutions and education programs. Nowadays there is almost half of Great Britain population (of certain age group) obtaining higher education certificate or diploma.
The junction of XX and XXI centuries was signed with significant shift in the gender structure of higher education students: more women obtained fist university degree than men. Ten years later the same was recorded in higher degrees.
The intense change of Great Britain higher education from elite to mass inevitably influenced the higher education finance sector. Great Britain used to cover all expenses of higher education from the budget. However, the financial crises occurred in the last decade of XX century, and the government was forced to seek for new financing models of higher education. First time in Great Britain higher education history the tuition fee was introduced. Striving to ensure the higher education accessibility for all social groups in Great Britain, the tuition fees were complemented with the grants and loans with special repayment (or without) conditions. Nevertheless, the financial reform, started in 1998, already was changed several times and has raised lots of critics.
Along with the financial reform Great Britain deals with the higher education quality issues. There was no essential discussions about higher education quality in the beginning of the XX century as it was elite higher education. Moving to the mass higher education with variety of institutions and dramatically growing student number, the quality question becomes relevant. Despite the owning the largest number of worldwide level elite universities in Europe, Great Britain seeks to ensure the quality in all higher education institutions in the country. Therefore the Quality Assurance Agency for Higher Education was established. The Agency puts students and the public interest at the center of everything they do. Great Britain higher education quality policy is implemented basing on the Quality Code for Higher Education.
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Kovacevic, Maja. "Limits of the EU’s transformative power and the Western Balkans." Medjunarodni problemi 71, no. 1 (2019): 26–49. http://dx.doi.org/10.2298/medjp1901026k.
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The European Union (EU) is a unique player in the Western Balkans, where it has employed a wide array of foreign policy instruments since the 1990s such as diplomacy, trade, financial assistance, civilian missions, military missions, and enlargement, which is the EU?s most successful foreign policy tool. The region is an inspiring case for studying the EU?s transformative power. The undeniable success of the EU?s Enlargement Policy in influencing transitions of Central and Eastern Europe countries has inspired research of the Europeanization, or the EU?s transformative power in relation to candidate countries, and its impact on their political and economic reforms during the accession process. Since then, the EU?s global transformative power has been in crisis. The European Neighbourhood Policy was reviewed in 2015, aiming not any more towards the transformation of neighbouring states, but rather at fostering their resilience. Similarly, the 2016 Global Strategy for the European Union?s Foreign and Security Policy set the principled pragmatism as a guideline. Moreover, the EU?s transformative power towards member states is questioned after two initiatives to trigger Article 7 TEU procedures against Poland and Hungary. What about the Europeanization of the Western Balkans? Despite the fact that the EU has been the main driver of change, the Europeanization of this post-conflict region has been slow. According to Freedom House, after substantial progress from 2004 to 2010, the Western Balkans has declined six years in a row, and its average Democracy Score in 2016 is the same as it was in 2004. With the exception of Albania, the scores of all countries are declining, not improving. The EU?s security-democratisation dilemma strongly affects its transformative power in the Western Balkans. By prioritising effective government rather than democratic governance, the EU has helped stabilise non-democratic and corrupt regimes rather than transforming them, legitimising Balkan "stabilitocrats".
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Alsarhan, Abdulwahab, Nayef Al-Shammari, and Mohammad Alenezi. "Testing the production efficiency of the investment sector in Kuwait using two-stage approach." Journal of Economic and Administrative Sciences 31, no. 2 (November 16, 2015): 109–23. http://dx.doi.org/10.1108/jeas-10-2014-0028.
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Purpose – Testing the efficiency in the economy has been highly pronounced since the financial crisis in 2008, as many countries have started to deregulate their economic sectors. The potential impact of testing efficiency is thus the key driver of world output and welfare. For this purpose, the main objective of the Capital Market Authority consists of more regulation of securities trading to boost economic efficiency. In particular, the purpose of this paper, is to examine the efficiency of 40 investment companies in Kuwait. In this study, the authors investigate the efficiency in the investment sector in Kuwait. Studying such a case is important for several reasons. First, the investment sector in Kuwait is affected by the World Trade Organization (WTO) conditions and regulations for more market liberalization. Second, most studies on efficiency have focussed on developed countries, such as those of Europe and the USA, with very few studies examining developing countries, such as Kuwait. Third, the study efficiency features is important in helping policy makers evaluate how the investment sector will be affected by increasing competition and then formulate policies that affect that sector and the economy as a whole. Design/methodology/approach – In this study, we use non-parametric data envelopment analysis (DEA) to estimate investment companies’ efficiency in Kuwait. The authors test predictions of the model using yearly data for 2006-2010. In the analysis, the authors follow the two-stage approach suggested by Coelli et al. (1998). In the literature on DEA efficiency score measurement, this two-stage approach is the most prominent. This approach uses the efficiency score, measured by the DEA model, as the dependent variable in a regression model with explanatory variables that are supposed to capture the impact of external factors (Hahn, 2007). In the second stage, the authors used a Tobit model to investigate factors affecting the efficiency in the Kuwaiti investment sector. Findings – The findings of the second stage suggest that 2008-2010 had a negative impact on firms’ efficiency in Kuwait. The results confirm the substantial influence of the 2008 global financial crisis on the investment sector in Kuwait. In addition, the results show that factors affecting production efficiency in the investment sector in Kuwait include the total revenues, total assets, government participation, and Islamic firm dummy. These second-stage results are confirmed using different specifications of a fixed effect model, a random effects model, and a logit model. Originality/value – The results may be utilized by both monetary authorities and policy makers in establishing the general economic policy in the country. A number of policy implications may be derived from the estimates obtained in the current paper. First, the results show that the investment sector in Kuwait faced a sharp drop in its efficiency in 2008 due to the global financial crisis. This result tells us that there was a spillover effect of the global financial crisis in the Kuwaiti investment market, as companies in this market are highly vulnerable to global shocks. As a result, the investment sector needs to be regulated by, for example, encouraging more company mergers and acquisitions. Second, to meet the appropriate regulations in the investment sector in Kuwait, monetary authority in Kuwait should take into consideration the WTO conditions for more openness in the economic sector. Therefore, companies in the investment sector should be more efficient to compete with foreign investment companies that decide to enter into Kuwaiti market. Therefore, the need for regulations in the Kuwaiti investment sector is more necessary than before. Third, the study of efficiency features is important to help policy makers evaluate how the investment sector will be affected by increasing competition and then formulate policies that affect that sector and the economy as a whole. Furthermore, monetary policy can play an important role in influencing the efficiency in the investment sector. Therefore, the Central Bank of Kuwait should take a leading role in regulating abnormal financial activity in the Kuwaiti market.
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Mehedintu, Anca, Georgeta Soava, and Mihaela Sterpu. "Remittances, Migration and Gross Domestic Product from Romania’s Perspective." Sustainability 12, no. 1 (December 25, 2019): 212. http://dx.doi.org/10.3390/su12010212.
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This study analyzes the evolution and trends of the share of remittances in gross domestic product (GDP) and the influence of migration on remittances in Romania. The analysis on data from Eurostat over 2008–2017 has three components: a statistical analysis, an estimation of evolution of indicators, and an estimation of impact of migration on remittances, using polynomial-time regression and difference equation models, respectively. The results showed that GDP and GDP/capita had a permanent increase, meaning an improvement in the standard of living in Romania, while the other indicators had an evolution with a period of sharp decline triggered by the global crisis, followed by a slow growth. We may conclude that the remittances represented and still represent a relatively stable financial resource for Romania as for the other emerging countries in Europe, affecting in a positive way the standard of living of the citizens, although their value has a tendency to decrease. At the same time, the negative effects of remittances, dependence on money received from migrants and the exodus of “brains” and skilled workers, must be considered, implying the necessity of government policies for a better use of remittances, i.e., mainly for investments and less for consumption.
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Kvashnin, Yury D. "The Republic of Cyprus as a Transit Point for Foreign Capital." Outlines of global transformations: politics, economics, law 11, no. 1 (April 4, 2018): 170–84. http://dx.doi.org/10.23932/2542-0240-2018-11-1-170-184.
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The policy of the Cypriot authorities, aimed at attracting foreign capital, is deeply rooted in history. Having created a flexible tax system, since its first years as an independent state Cyprus has managed to attract numerous foreign shipping companies and in the 1970s it turned into a regional financial hub through which economic cooperation between the countries of the West and the Middle East was carried out. The Cypriot economy flourished in the 1990s – 2000s, when thanks to favorable taxation regime, transaction confidentiality, convenient geographical location, eased visa regime and a number of other factors it became the main transit point for capital from Eastern Europe, first of all – from Russia. However, the future of Cyprus as an international financial center is in question. Under the pressure of the EU, OECD and a number of individual countries, the Cypriot authorities are forced to bring their tax legislation in line with international standards. Negative impact on the investment image of the country was rendered by the national 2012-2013 banking crisis, followed by the collapse of the largest national banks, a sharp deterioration in macroeconomic indicators and the implementation by the government of a number of reforms that affected the attractiveness of Cyprus in the eyes of international business companies. In these circumstances, the Cypriot authorities have taken a number of measures aimed at preventing the outflow of foreign capital, including the abolition of the property tax in the housing stock, the extension of benefits for new tax residents and the introduction of a simplified procedure for the granting of Cypriot citizenship for investments. Thanks to these innovations, Cyprus managed not only to retain interest from TNCs of Russian origin, but also to attract investments of small and medium-sized companies, primarily those working in the field of information and communication technologies.
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Gertler, Mark, Nobuhiro Kiyotaki, and Albert Queralto. "Financial crises, bank risk exposure and government financial policy." Journal of Monetary Economics 59 (December 2012): S17—S34. http://dx.doi.org/10.1016/j.jmoneco.2012.11.007.
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Marszałek-Kawa, Joanna, and Ahmet Burak. "The Landscape after Brexit as Seen from Ankara. Will the UK’s Divorce from the European Union Additionally Loosen Tights Between Europe and Turkey and Have an Impact on the Future of the Continent?" Przegląd Politologiczny, no. 3 (September 15, 2017): 117–26. http://dx.doi.org/10.14746/pp.2017.22.3.9.
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On 29 March 2017, President of the European Council Donald Tusk received a note from UK Ambassador Tim Barrow. Under the document, the procedure of UK’s leaving of the European Union was initiated.1 Gideon Rachman from “Financial Times” compared Brexit to a divorce, stating that the representative of the British government “granted the divorce papers”, thus beginning a “long (planned for two years) attempt to redefine mutual relations” (Rozpoczyna się Brexit…, 2017). In his announcement for the press, Donald Tusk commented: “There is no reason to pretend that this is a lucky day, both in Brussels and in London […] Most Europeans, including almost a half of British voters, would prefer us to be still together” (Wielka Brytania rozpoczyna…, 2017). The stance of the European Council clearly mirrors the moods caused by the decision on Brexit, which are prevailing among all EU member states. It should be noted, however, that leaving the EU by the Brits not only has an impact on their political situation, but it also determines the actions of states aspiring to become members of the Community. The aim of this paper is to discuss the reasons for Brexit and to present the position of the Turkish government on this issue on the basis of the analysis of press articles and politicians’ speeches. The hypothesis we posed assumes that Brexit meant Turkey losing its most important advocate in the Union. Thus, the future of accession negotiations between Turkey and the European Union has been called into question. One should also wonder to what degree Turkey’s foreign policy priorities, which have already been redefined under the influence of the war in Syria, the battle with ISIS, the immigration crisis and the futile accession process so far, will be affected by the United Kingdom’s decision to leave the European Union. Will Turkey choose to follow the so-called Trexit route, giving up its membership in the EU?
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Rajevska, Feliciana. "THE STRENGTHS AND WEAKNESSES OF FINANCING SOCIAL PROTECTION IN LATVIA." SOCIETY. TECHNOLOGY. SOLUTIONS. Proceedings of the International Scientific Conference 1 (April 17, 2019): 4. http://dx.doi.org/10.35363/via.sts.2019.25.
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INTRODUCTION
Public social protection spending in Latvia amounted to 15.2% of GDP in 2016. Financing social protection in terms of PPS per inhabitant was only 35% of the average amount in the EU-28 in 2016. The explanation for such a permanently low level of social protection funding is not only a modest level of economic development, but traditionally a low priority of social spending in Latvian politics. The analysis of changes in the financing level of social protection, the changes in the main sources of social protection, the impact of past reforms is in focus. The wide variety in financing structures of social protection systems across Europe and the different levels of financing provides an opportunity to better understand the specifics in Latvia and its mixture of sources of financing social protection system.
METHODS
The author uses data from ESSPROS, the State Social Insurance Agency, the Ministry of Welfare for 2005-2017 for Latvia and the EU28 and is doing analysis of secondary statistical data, public policy documents, analysis of legislative acts and Cabinet Regulations from 2005-2018.
RESULTS AND DISCUSSIONS
The social insurance schemes are based on the pay-as-you-go principle and the distribution is achieved between the present contributors and the present recipients, at the same time the benefit amount is closely linked to the contributions paid by a certain individual. Such a system creates proper work incentives, albeit requires significant resources for its administration. The State Social Insurance Agency showed an excellent performance in dealing with this task. Latvia’s experience with the micro-enterprise tax regime demonstrated the pitfalls of an over-simplified approach to taxation, when the measure, aimed at combating unemployment, became a tax evasion trick at the cost of the workers’ social security.
The strong side of the existing model of financing social protection is its ability to maintain a positive balance even in the background of a very turbulent environment. The sustainability of the social insurance budget has always been and remains a top priority for policy-makers. Social contributions play the leading role in the existing mix of financing social protection. The share of old-age function benefits is higher than the EU28 average. The expenditures on some functions grew faster: spending on disability benefits increased by 99%, on unemployment by 75%, on old-age and family benefits by 64%. The last decade demonstrated a trend to an increasing role of the general government contributions. The social contribution rates are already quite high (35.09% in 2018) and can hardly be increased, otherwise labour costs might become uncompetitive. Therefore, a further increase of general government contributions seems unavoidable.
CONCLUSIONS
Trends in reforms and policy changes were diverse and even contradictory: cost saving, support of specific target groups, reallocating funds in financial flows, an increase of the pension age. A number of policy adjustments were based on the lessons learned during the crisis. Means-tested benefits are thinly represented in the Latvian social security system, and the thresholds used for their calculation are inadequately low. The Latvian healthcare system is chronically underfinanced. It also has a high ratio of out-of-pocket co-financing by patients. Austerity measures had a strong influence on social protection expenditures from 2009–2014. Among the weaknesses of the social insurance schemes, one should mention the inadequately low minimum levels of benefits, especially as concerns old-age pensions. Low wage earners might have a disincentive to diligently pay the contributions, seeing that even the average old-age pension is lower than the at-risk-of-poverty threshold.
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Wildowicz-Giegiel, Anna. "The role of independent fiscal councils in improving fiscal performance of the European Union countries." Equilibrium 14, no. 4 (December 31, 2019): 611–30. http://dx.doi.org/10.24136/eq.2019.029.
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Research background: Independent fiscal councils are an example of new fiscal institutions, the number of which has rapidly increased around the world, including the EU countries since the global financial crisis of 2008–09. A further deterioration of public finance has provoked many economists to intensify disputes regarding the optimal shape, functions and effectiveness of fiscal councils responsible for promoting sound fiscal policy. Given this, a research focus on independent fiscal councils, active in the public debate in Europe, seems intellectually attractive.
Purpose of the article: This article aims to explore the impact of Independent Fiscal Councils on fiscal performance, paying particular attention to their mandate, tasks and institutional models which can strengthen the achievement of fiscal discipline in the EU countries. In connection with this, the question arises about the effectiveness of fiscal councils, especially in the case of institutions that were compulsorily created under the external pressure (at the European level) and found no strong political support in national parliaments.
Methods: Descriptive analysis along with panel data analysis were implemented to show the role of fiscal councils in enhancing fiscal discipline in the EU countries in years 2006–17 on the basis of data collected by the European Commission.
Findings & Value added: The improvement in fiscal performance and better macroeconomic and budgetary forecasts can be achieved thanks to well-designed fiscal councils supported by appropriate fiscal rules. The conducted analysis confirms that independent fiscal councils are the useful mechanism introducing indirect social control over government revenues and expenditures. This means greater fiscal transparency and lower fiscal illusion between the government and the electorate. Due to the increase in the transparency of public finance, it is possible to reduce the ‘partisan’ deficit bias that contributes to public debt growth. The empirical research extends the existing knowledge on the role of fiscal councils and their impact on fiscal performance.
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Desalegn, Goshu, Anita Tangl, and Maria Fekete-Farkas. "From Short-Term Risk to Long-Term Strategic Challenges: Reviewing the Consequences of Geopolitics and COVID-19 on Economic Performance." Sustainability 14, no. 21 (November 3, 2022): 14455. http://dx.doi.org/10.3390/su142114455.
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The COVID-19 crisis and the war between Russia and Ukraine affects the world economy badly. The western countries’ economic sanctions on Russia and the Russian government’s reverse sanctions on western countries create pressure on the world economy. This study was conducted to investigate how the economic performance is responding to COVID-19 and the geopolitical crisis of the era. In doing so, both theoretical and numerical data reviews have been performed. The objective of the study is to investigate the short-term risks and long-term strategic challenges of the crisis. The study used a bibliometric approach with the help of RStudio software. The Web of Science database was used for extracting the resources in line with the grey literature from the Google Search engine. A total of 895 documents were utilized in this bibliometric analysis. At the same time, secondary panel data extracted from the international monetary fund (IMF) for a period of 4 years (2019–2022) were utilized for reviewing numerical implications. The purposive sampling technique is used for data selection and main economic variables. The findings of the study imply that countries over the world registered less economic growth, high inflation rate, and high government debt in 2022 compared to the fiscal period of 2019–2021. The emerging economies and developing countries of Europe were badly affected by the crisis as the level of inflation rate hit 27 percent and the economic growth of the region registered a negative 2.9 percent. The study also found rising interest rates, exchange rate volatility, risk of stagflation, and rising energy prices are the short-term risks to economies. The issue of sustainable development goals and green aspects, risk of hyperinflation, and risk of economic recession are the long-term strategic challenges or risks to economies. Bailout and debt relief were found to be necessary for those countries badly affected by the crisis. Policymakers should facilitate financial policies and should switch from general assistance to targeted support of viable enterprises.
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Khalatur, Svitlana, Lesia Kriuchko, and Anna Sirko. "WORLD EXPERIENCE ADAPTATION OF ANTI-CRISIS MANAGEMENT OF ENTERPRISES IN THE CONDITIONS OF NATIONAL ECONOMY’S TRANSFORMATION." Baltic Journal of Economic Studies 6, no. 3 (August 5, 2020): 171–82. http://dx.doi.org/10.30525/2256-0742/2020-6-3-171-182.
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The purpose of the article is to systematize and generalize the experience of leading countries to form and implement an effective crisis management system; to clarify the role of the state in the formation and implementation of anti-crisis regulation strategy of the real sector of the economy, as well as to substantiate the main methodological provisions of its formation. The subject-matter of the study is the methodological and conceptual foundations of the process of the effective crisis management system of the USA, China, Japan, the EU and Ukraine. Methodology. The research is based on the set of well-known general scientific and special methods of research in economics. In particular, the dialectical method, the method of scientific abstraction, the method of systematic analysis, economic and mathematical modeling has been used in the article. Conclusion. The world experience of solving the problems of enterprise bankruptcy is generalized. The experience of the USA, Japan, China, the countries of the European Union is considered. The econometric model taking into account the heteroskedasticity of the residues shows that an increase of 1% Central government debt, bank capital to assets ratio, expense, exports of goods and services, foreign direct investment, net inflows will increase GDP by 2.41%, 1.53%, 1.23%, 2.03%, and 1.19% respectively in the studied countries. Examining the experience in the field of crisis management, it should be noted that in Europe there is a selective approach aimed at stimulating the activities of specific companies; public sector priorities are education, health care, pensions, and the labor market. In addition, in some countries in order to find innovative structures of enterprises, increase their competitiveness and efficiency, out of the crisis, the development of privatization programs is used, which in each country have their own characteristics. World experience shows that the models of anti-crisis management constructed in different countries of the world provide various potential opportunities for progressive socio-economic changes. However, none of them can be used in its pure form in the formation of anti-crisis management policy in Ukraine. This is due to the conditions of accumulation of this experience by countries, the formation of mechanisms and institutions in a balanced economy, differences in the construction of financial and credit mechanisms, and so on. The use of positive experience should be the first step towards reforming the crisis management system.
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Valiente, Oscar, Queralt Capsada-Munsech, and Jan Peter G de Otero. "Educationalisation of youth unemployment through lifelong learning policies in Europe." European Educational Research Journal 19, no. 6 (February 23, 2020): 525–43. http://dx.doi.org/10.1177/1474904120908751.
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In the aftermath of the 2008 Global Financial Crisis, European authorities reinforced the economic objectives of European lifelong learning policy, promoting employability solutions to address youth unemployment, and increasing their political influence on the implementation of national lifelong learning reforms. This article investigates to what extent these supranational policy orientations have been translated into concrete national lifelong learning initiatives. Although European countries were not equally affected in terms of time and intensity by the rise in youth unemployment rates, the political responses from their governments shared a central focus on employability solutions to youth unemployment in lifelong learning policy reforms. Our comparative analysis shows how different lifelong learning policy initiatives managed to ‘educationalise’ a structural economic problem (i.e. youth unemployment) into an individual educational concern (i.e. lack of education and skills). We argue that the ‘educationalisation’ of youth unemployment through lifelong learning policies is a crisis management strategy, which has allowed governments to focus on the individual symptoms of the problem while avoiding offering solutions to the underlying structural causes of young people’s poor labour market prospects.
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Kousenidis, Dimitrios V. "The market impact of the involvement of the EU/ECB/IMF in crisis-affected countries during the European sovereign debt crisis." Review of Accounting and Finance 16, no. 2 (May 8, 2017): 162–78. http://dx.doi.org/10.1108/raf-06-2015-0079.
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Purpose This paper aims to examine whether the release of news about policy interventions by the troika [European Union (EU)/the European Central Bank (ECB)/International Monetary Fund (IMF)] in the crisis-affected EU countries (Cyprus, Greece, Ireland, Italy, Portugal and Spain) and whether the policy responses of these countries’ governments had impacts on the return and risk of stocks in the financial and real-economy sectors of these countries. Design/methodology/approach The paper uses a broad set of news announcements concerning the troika authorities’ policy interventions and the policy responses of the affected Eurozone states’ governments. To test for the risk and return effects of these announcements during the crisis period, a set of regression equations is estimated under a difference-in-difference approach using intercept and slope dummy variables for news releases from troika authorities and from the national governments of the six EU countries. This enables unraveling the effects of the crisis (first difference) and the effects of news announcements (second difference). Findings The results indicate that the involvement of the troika managed to reverse some of the unfavourable market effects of the crisis. Moreover, the policy response of national governments was found to have stronger favourable effects in the markets of the affected countries implying that investors likely waited for the response of the national governments before they reacted to the policy actions of the troika. The simultaneous release of news from the troika and from national governments had adverse effects on the returns and risk of the firms in the real economy sectors, suggesting that cross-news announcements conveyed negative information in the markets. Originality/value The paper provides evidence on the effects of policy-related news announcements on the development of the recent sovereign debt crisis in Europe. This issue is highly important, as it can reveal the effectiveness of the IMF’s and EU authorities’ policy interventions in affected Eurozone member states during the first major crisis in Europe since the monetary union.
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Ha, Eunyoung, and Myung-koo Kang. "Government Policy Responses to Financial Crises: Identifying Patterns and Policy Origins in Developing Countries." World Development 68 (April 2015): 264–81. http://dx.doi.org/10.1016/j.worlddev.2014.12.001.
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Newman, Abraham L. "Flight from Risk: Unified Germany and the Role of Beliefs in the European Response to the Financial Crisis." German Politics and Society 28, no. 2 (June 1, 2010): 151–64. http://dx.doi.org/10.3167/gps.2010.280210.
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Since the end of World War II, scholars have attempted to make sense of Germany's insistent multilateralism. Many concluded that this sacrifice resulted from a deeply ingrained political identity that stressed international cooperation and shunned parochial national politics. More recently, however, German leadership has suggested a willingness to weaken its role as global altruist and reassert its interests in Europe and abroad. This article argues that core German attitudes towards regional and global cooperation have changed. But rather than a shift to "national self-interests," I argue that the unification process elevated long-held beliefs about policy conservatism and caution that now compete with the postwar multilateral policy frame within the foreign policy elite. In addition to the pro-European, multilateralist agenda, a second powerful lesson of the interwar period emphasized the dangers associated with sudden change and the benefits of incrementalism. Owing to the uncertainty associated with sociopolitical events, decision makers must rely on their beliefs about how the world works to guide their decisions. To explore the relationship between beliefs and Germany's regional policy, the paper examines the government's regional response to the post 2008 financial crisis and the banking crisis in Eastern Europe.
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Grinder, Brian, Robert Sarikas, Dean Kiefer, and Arsen Djatej. "The Financial Crisis: Lessons from History." International Journal of Research in Business and Social Science (2147-4478) 4, no. 1 (January 22, 2015): 1–16. http://dx.doi.org/10.20525/ijrbs.v4i1.27.
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Financial crises have regularly afflicted economies throughout history and the United States has been no exception. This paper examines the Panic of 1907, the Crash of 1929 and the Great Depression and the Great Recession of 2007-08 and discusses the responses of the government and regulators. The short version of the story is that the while the government response has varied in terms of monetary and fiscal policy, the regulatory response has remained essentially the same. The typical reactive regulation sounds good and gives the appearance of accomplishing something but, in fact, only serves to sow the seeds of future crises. The ineffective implementation of existing regulation has had a similar result. Indeed, several authors note that most financial innovation in recent years has its origins in circumventing new regulations. Likewise, government monetary and fiscal responses may or may not help the economy and often give the appearance of great arbitrariness. Our conclusion is that there will be unforeseen financial crises in the future, sweeping regulation and promises of recent politicians notwithstanding. Serious study of the unanticipated consequences of this regulation and the development of more robust risk management systems will help us mitigate the effects of future crises but will be of little assistance when it comes to avoiding them. Developing the analyses and risk management systems requires a detailed study of financial history keep both successes and failures fresh in our collective memory.
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Xu, Qingwen, and Jamie P. Halsall. "Living in the Age of Austerity and Migration." Illness, Crisis & Loss 25, no. 4 (August 11, 2017): 340–60. http://dx.doi.org/10.1177/1054137317723146.
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The global financial crisis of 2008 has caused much dialogue within the social policy framework on how to maintain a sustainable elderly health-care system. This coupled with a migrant crisis have created extra social and economic pressures in Europe in particularly. As it has been well documented by social scientists, people are living longer than ever before. There are two fundamental factors that are helping people live to an old age, which are as follows: (a) a better quality of life and (b) improved health-care system at state level. However, since the global financial crisis of 2008 populations across the world are living in an age of austerity. The age of austerity has brought extra financial pressures on the state, polarizing society by implementing cuts in welfare. The reason many governments across the world (e.g., United States, United Kingdom, and Greece) have enforced a series of austerity measures is fundamentally to reduce debt. The aim of this article is to critically explore the austerity social policy agenda within the context of the debates surrounding the refugee or migrant crisis in the elderly health-care system.
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Chen, Mary, Matthew DeHaven, Isabel Kitschelt, Seung Jung Lee, and Martin J. Sicilian. "Identifying Financial Crises Using Machine Learning on Textual Data." Journal of Risk and Financial Management 16, no. 3 (March 1, 2023): 161. http://dx.doi.org/10.3390/jrfm16030161.
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We use machine learning techniques on textual data to identify financial crises. The onset of a crisis and its duration have implications for real economic activity, and as such can be valuable inputs into macroprudential, monetary, and fiscal policy. The academic literature and the policy realm rely mostly on expert judgment to determine crises, often with a lag. Consequently, crisis durations and the buildup phases of vulnerabilities are usually determined only with the benefit of hindsight. Although we can identify and forecast a portion of crises worldwide to various degrees with traditional econometric techniques and using readily available market data, we find that textual data helps in reducing false positives and false negatives in out-of-sample testing of such models, especially when the crises are considered more severe. Building a framework that is consistent across countries and in real time can benefit policymakers around the world, especially when international coordination is required across different government policies.
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Larsen, Erik Gahner, Robert Klemmensen, and Michael Baggesen Klitgaard. "Bailout or bust? Government evaluations in the wake of a bailout." European Political Science Review 11, no. 2 (May 2019): 231–46. http://dx.doi.org/10.1017/s1755773919000092.
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AbstractGovernments are often punished for negative events such as economic downturns and financial shocks. However, governments can address such shocks with salient policy responses that might mitigate public punishment. We use three high-quality nationally representative surveys collected around a key event in the history of the Dutch economy, namely the outbreak of the financial crisis in 2008, to examine how voters responded to a salient government bailout. The results illustrate that governments can get substantial credit for pursuing a bailout in the midst of a financial crisis. Future research should take salient policy responses into account to fully understand the public response to the outbreak of financial and economic crises.
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Capucha, Luís, João Sebastião, Susana da Cruz Martins, and Ana Rita Capucha. "Crisis and Education in Southern Europe: The Effects of Austerity and Ideology." Comparative Sociology 15, no. 5 (October 7, 2016): 593–620. http://dx.doi.org/10.1163/15691330-12341402.
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Since the mid-1970s, the countries of Southern Europe have been approaching European education patterns. This result can be observed in the positive dynamics and convergence with the rest of Europe. However, despite these visible results, the convergence was more evident up until the outbreak of the crisis, where the overall economic and political conditions also brought changes in policymaking in education to the Southern European countries, both in terms of policy priorities and educational outcomes. Therefore, while economic hardship and austere programs are a common trait in recent years, the changes cannot be directly or simply attributed to economic or financial constraints; these changes are mainly due to different political options endorsed by the governments of Portugal, Spain, Italy, and Greece. The main empirical sources are the Eurostat and theoecd. Other empirical material relates to national reports produced in the framework of an international project:ecseInternational Report, Educational Challenges in Southern Europe. Equity and efficiency in a time of crisis.
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Litovtseva, V., and M. Brychko. "FINANCING HOUSING PROGRAMMES AND ITS ROLE IN ENHANCING TRUST IN GOVERNMENT." Vìsnik Sumsʹkogo deržavnogo unìversitetu 2022, no. 2 (2022): 121–28. http://dx.doi.org/10.21272/1817-9215.2022.2-14.
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The democratic development of society has shown that the growth of the welfare of the overwhelming majority of the population through the implementation of effective social and economic policy in the country positively influences public attitude to the government and increases the level of trust in the public sector. A successful mechanism to address the social needs of citizens is the development of an affordable housing financing system for the population. The purpose of the study is to analyze the state of affordable housing financing in Ukraine and determine its relationship to trust in the public sector. The article examines the use of state-administrative mechanisms for realizing the housing rights of Ukrainian citizens. Analysis of the current state of implementation of affordable housing programs is proposed, considering the size of mortgage payments and the volume of housing financing. The analysis highlighted the existence of a housing crisis in Ukrainian society as a result of the extremely low level of funding for the sector. The study provides a comparative analysis of the housing affordability index and the level of trust in government in Europe, according to the Global Value Survey. This has helped determine the place of social housing policy in the system of trust relationships between government, local governments and citizens. According to the sociological monitoring platforms, a dynamic analysis of the balance of trust-distrust of the population of Ukraine to the state apparatus and local government bodies was conducted. Based on a comprehensive and critical assessment of the leading affordable housing programs in the country and trust indicators, this study found that the distribution of powers, incentives, responsibilities, and budget funds within the framework of the decentralization process between the central government and local authorities, contribute to the achievement of the main goals of the state's social policy regarding affordable housing, which positively affects the level of citizens trust in local authorities. As a result, it was determined that during periods of economic and political uncertainty, financing of affordable housing is quite important, because due to such actions the state reduces the level of uncertainty, forms positive expectations of citizens, promotes the increase of stability and trust necessary for sustainable economic and social recovery.
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Iacuzzi, Silvia. "An appraisal of financial indicators for local government: a structured literature review." Journal of Public Budgeting, Accounting & Financial Management 34, no. 6 (October 1, 2021): 69–94. http://dx.doi.org/10.1108/jpbafm-04-2021-0064.
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PurposeConsidering the increased financial responsibility of local government (LG), the impact of global crises and the growing adoption of accrual accounting and common standards such as IPSAS, this work focuses on financial indicators for LGs. It explores whether the literature on financial indicators has grown, investigates whether there is any consensus on which indicators to use for assessing LG's financial condition, develops a critical reading of the literature and offers suggestions for future research and policy agendas.Design/methodology/approachA structured literature review was carried out for publications in English about LG financial indicators.FindingsResults reveal that the number of publications dealing with financial indicators has increased over the past ten years. However, rather than focusing on a set of common indicators, the literature reports a plethora of different ones used for four main purposes: transparency and accountability compliance, performance monitoring and benchmarking, assessing LG's financial health and helping deal with exogenous crises. There is no evidence of convergence towards a common set of indicators, even though liquidity and solvency are the most popular dimensions explored by scholars.Research limitations/implicationsFindings highlight the challenges in converging on financial indicators, yet no claim can be made beyond the reviewed material.Practical implicationsResults provide legislators, public managers, investors and rating agencies with insights about trends in financial indicators, their benefits and limitations.Originality/valueThe article focuses on a less popular aspect of recent financial management reforms for local administration, that is the growing fragmentation in LG indicators, accentuated by the need for common assessment tools during unprecedented widespread crises across countries and sectors.
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Manjushri Abhishek Kadam. "Global Financial Crises and Its Impact on India." January 2021 7, no. 01 (January 29, 2021): 107–10. http://dx.doi.org/10.46501/ijmtst070125.
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Indian economy is experiencing a downturn after a long spell of growth. Industrial growth is faltering, the current account deficit is widening, foreign exchange reserves are depleting and the rupee is depreciating because of financial crises .The crises originated in United States but the Indian Government has a reason to worry because there is a potential adverse impact of the crises on India. The global economic slowdown is unprecedented in scale and has severe implications on policy formulation among emerging market. Currently India has one of the largest Developing countries in the world. Strong economic growth in the last decade combined with a population of over a billion makes it one of the potentially largest markets in the future. This paper provides an overview of global financial crisis (GFC) and its impact on the Indian Economy.
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Lazarides, Themistokles, and Electra Pitoska. "The European banking system before and after the crises." Corporate Ownership and Control 11, no. 3 (2014): 358–68. http://dx.doi.org/10.22495/cocv11i3conf1p5.
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The European banking system is not isomorphic. The differences can be traced to the differences in their local economy development, legal origin, ownership status, corporate governance system, etc. The 2008 crisis has found the banking system of Europe in a transition status. The adoption of Euro, the establishment of the European Central Bank, the Basil III initiative, the adoption of legal isomorphism as policy in E.U., and finally the crises have been creating a unique environment for the banking system. The paper will address the issue of convergence of the banking system in Europe using a set of data from 27 countries of Europe. The analysis shows that the banks haven’t changed their financial and ownership structure. Some changes in strategy are not adequate to formulate the opinion that the banking sector in Europe is different than the one before it.
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Afreen, Maria. "Review Paper on Composite Leading Index Creation for Forecasting the Bangladeshi Financial Sector." International Journal of Finance & Banking Studies (2147-4486) 9, no. 4 (October 13, 2020): 23–32. http://dx.doi.org/10.20525/ijfbs.v9i4.791.
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In perspective of the economic vulnerability faced by banks in financial sector, this study mirrors the methodology used by Shumway (2001) – the dynamic hazard model that is able to forecast systemic risk in financial market arena. Here, the terminology followed is based on the CAMELS framework variables: capital adequacy, asset, management, earnings, liquidity and sensitivity to market risk. The objective of this study is to construct a macroprudential indicator (MPI) for the case of Bangladeshi financial market. The result will then be tested for robustness with macro-stress test. Lagged independent variables will be used in the simple hazard model to allow early prediction of MPI in the year in which the crisis happens. The empirical findings can be used as a guideline for the Bangladesh Government and policy makers in accessing, examining and forecasting the health of the Bangladeshi financial system and formulate suitable financial system policies for control. MPI generates information about systemic risk allowing the detection of potential economic crises functioning as an early warning indicator. Government and policy makers will be able to make early preparation in cushioning any potential crises by means of the MPI. Thus the impact of the crises could be minimized and eventually reduce its impact on the Bangladesh economy. The specific objectives are to assemble a novel MPI that is able to recommend early signals of financial market vulnerability, to identify the MPI turning points and establish a comprehensive reference chronology for Bangladeshi financial market and to evaluate the predictive performance of newly constructed MPI on characterizing Bangladeshi financial sector.
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Scholten, Daniel, and Miroslava Scholten. "Towards a European Division of Labour: Do Europe’s Crises Highlight Structural Challenges to Sustainable Economic Growth in the Eurozone?" European Review 22, no. 3 (June 30, 2014): 382–87. http://dx.doi.org/10.1017/s1062798714000222.
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The financial and economic crises of the last few years in many Southern Eurozone countries are generally studied individually, without reference to other such crises in the region. In this note, we argue that they may also be approached as symptoms of an underlying structural challenge facing the EU economy. In many ways the relationship between northern and southern Eurozone countries seems remarkably similar to typical economic centre–periphery relations, yet without the harmonizing role that a national government could play. The occurrence and combination of crises seems to be indicative of what one would expect from the adverse effects of centre–periphery relations among countries. Unfortunately, this would imply that the crises we are currently seeing are likely to continuously reoccur in the near future to the detriment of sustainable economic growth and political-economic stability in Europe.