Journal articles on the topic 'Financial crisis policy-making'
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1
Gandrud, Christopher, and Mícheál O'Keeffe. "Information and financial crisis policy-making." Journal of European Public Policy 24, no. 3 (April 8, 2016): 386–405. http://dx.doi.org/10.1080/13501763.2016.1149205.
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Aliuddin, Sadaf. "European Central Bank Policy-Making and the Financial Crisis." CFA Digest 42, no. 3 (August 2012): 55–57. http://dx.doi.org/10.2469/dig.v42.n3.42.
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Gorter, Janko, Fauve Stolwijk, Jan Jacobs, and Jakob de Haan. "EUROPEAN CENTRAL BANK POLICY-MAKING AND THE FINANCIAL CRISIS." International Journal of Finance & Economics 19, no. 2 (March 7, 2012): 132–39. http://dx.doi.org/10.1002/ijfe.1452.
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LIEW, LEONG H. "The Role of China's Bureaucracy in its No-Devaluation Policy during the Asian Financial Crisis." Japanese Journal of Political Science 4, no. 1 (May 2003): 61–76. http://dx.doi.org/10.1017/s1468109903001002.
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Analysts have generally offered two explanations for China's no-devaluation policy during the Asian financial crisis. The first is China's good economic fundamentals and the renminbi is not fully convertible. The second is China's foreign relations' imperative. China was endeavouring to seek favourable entry conditions into the WTO and improve relations with its Asian neighbours. At the same time it sought to exploit the undercurrent of resentment in Asia towards the role played by the US during the crisis. Policy making in China has become more institutionalized in the post-Deng era, but these explanations ignore the role of China's domestic bureaucratic actors in exchange rate policy making. This paper examines the exchange rate regime preferences of China's key economic ministries and their influences in exchange rate policy making and argues that Party leaders were able to adopt a no-devaluation policy throughout the crisis because China's key economic ministries actively supported or acquiesced to that policy.
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He, Shenjing, Mengzhu Zhang, and Zongcai Wei. "The state project of crisis management: China’s Shantytown Redevelopment Schemes under state-led financialization." Environment and Planning A: Economy and Space 52, no. 3 (October 17, 2019): 632–53. http://dx.doi.org/10.1177/0308518x19882427.
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Since 2008, China has introduced state-led financialization to inject low-interest, stable and long-term loans to facilitate urban redevelopment through national shantytown redevelopment schemes (SRSs). Extending critical state theories to China’s transitional economy, we consider SRSs to be a policy model of the state project (mode of policy-making) of crisis management that aims to revitalize the national economy in the wake of the global financial crisis. Essentially, this state project serves to tackle the legitimation crisis threatened by both the economic crisis and the escalating social discontent. Drawing on an empirical study of Chengdu, a regional hub in western China spearheading SRSs, this paper examines how the Chinese state at different levels interacts with the nascent financial market in the creation of a new “model” of urban redevelopment under state-led financialization. Having been exploited to manage economic and legitimation crises, this model has simultaneously become a source of “crisis of crisis-management” owing to the state’s “over-intervention”. This research contributes to a fresh understanding of the multiplicity of financialization by linking the financialization of urban built environment with the financialization of the state project, in which financial motives and practices shape the mode of policy making. The Chinese experience also presents a decentered interpretation of state-led financialization that renews our understanding of the multifaceted state and state projects, particularly the hybridized, often contradictory motivations and socio-economic outcomes of state interventions.
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Murai, Taiki, and Gunther Schnabl. "Macroeconomic Policy Making and Current Account Imbalances in the Euro Area." Credit and Capital Markets – Kredit und Kapital: Volume 54, Issue 3 54, no. 3 (July 1, 2021): 347–73. http://dx.doi.org/10.3790/ccm.54.3.347.
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The paper analyses the role of fiscal and monetary policy for the development of the current account imbalances in the euro area, including the most recent developments during the coronavirus crisis. Several financial transmission channels such as international bank lending, changes in TARGET2 balances, international rescue credit and government bond purchases of euro area central banks are identified. It is found that differing fiscal policy stances which have interacted differently with the ECB’s monetary policy have been at roots of first diverging and then converging current account positions in the euro area. Since the European financial and debt crisis, public financing mechanisms and the unconventional monetary of the ECB have contributed to the persistence of intra-euro area current account imbalances.
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Bouchetara, Mehdi, Abdelkader Nassour, and Sidi Eyih. "Macroprudential policy and financial stability, role and tools." Financial Markets, Institutions and Risks 4, no. 4 (2020): 45–54. http://dx.doi.org/10.21272/fmir.4(4).45-54.2020.
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The aim of macroprudential policy is to ensure financial stability by avoiding the outbreak of banking crises, which have a dangerous effect on the economy. Is macroprudential policy effective in the face of banking crises and systemic risks? The macroprudential policy has received significant interest from policy-makers and researchers. A few developing countries were using macroprudential policy tools well before the 2008 financial crisis, but significant progress has been made thereafter in both emerging and industrialized economies to put in place specific institutional settings for macroprudential policy. The fundamental objective of macroprudential policy is to maintain the stability of the financial system by making it more resistant and preventing the risk build-up. The objective of this paper is to analyze the important role of macroprudential policy in ensuring overall financial stability. Since the financial crisis of 2008, macroprudential policy has been increasingly used across economies. These measures aim at smoothing financial cycles and thereby mitigating the impact on the real economy, thereby allowing monetary policy to focus on price stability and promote growth and full employment. Macroprudential policy instruments fall into two categories, depending on their purpose, namely, to prevent procyclicality or to enhance the resilience and soundness of the financial system against shocks. The first category of instruments is used to stop bubbles from forming and smooth cycles, i.e. to force the debt-equity of economic operators on an income basis to prevent unsustainable credit bubbles, or to require dynamic loss provisioning rules. The second category of macro-prudential policy is to improve the resilience to shocks, such as capital surcharges for systemic institutions or the requirement to hold liquid assets to cope with market panics, and to make the financial system less complex. Keywords: macroprudential policy, financial stability, tools and measures, systemic risks.
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Macartney, Huw, David Howarth, and Scott James. "Bank power and public policy since the financial crisis." Business and Politics 22, no. 1 (January 27, 2020): 1–24. http://dx.doi.org/10.1017/bap.2019.35.
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AbstractDespite much commentary in the media and the popular assumption that the banking industry exerts undue influence on government policy-making, the academic literature on the role of the banks since the 2008 financial crisis remains theoretically and empirically under-specified. In particular, we argue that different forms of financial power are often conflated, while favorable policy outcomes are too-readily assumed to be evidence of regulatory capture. In short, we still know relatively little about how bank influence varies over time and in different national contexts, the extent to which banking interests are unified or divided, and the conditions under which banks are capable of producing meaningful variation in policy outcomes. This article has three objectives: 1) to explain why the debate on bank influence matters; 2) to examine the evidence of bank influence since the international financial crisis; and 3) to set out a range of conceptual tools for thinking about bank power.
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Nelson, Stephen C., and Peter J. Katzenstein. "Uncertainty, Risk, and the Financial Crisis of 2008." International Organization 68, no. 2 (2014): 361–92. http://dx.doi.org/10.1017/s0020818313000416.
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AbstractThe distinction between uncertainty and risk, originally drawn by Frank Knight and John Maynard Keynes in the 1920s, remains fundamentally important today. In the presence of uncertainty, market actors and economic policy-makers substitute other methods of decision making for rational calculation—specifically, actors' decisions are rooted in social conventions. Drawing from innovations in financial markets and deliberations among top American monetary authorities in the years before the 2008 crisis, we show how economic actors and policy-makers live in worlds of riskanduncertainty. In that world social conventions deserve much greater attention than conventional IPE analyses accords them. Such conventions must be part of our toolkit as we seek to understand the preferences and strategies of economic and political actors.
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Amromin, Gene, Neil Bhutta, and Benjamin J. Keys. "Refinancing, Monetary Policy, and the Credit Cycle." Annual Review of Financial Economics 12, no. 1 (November 1, 2020): 67–93. http://dx.doi.org/10.1146/annurev-financial-012720-120430.
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We assess the complicated reality of monetary policy transmission through mortgage markets by synthesizing the existing literature on the role of refinancing in policy implementation. After briefly reviewing mortgage market institutions in the USA and documenting refinance activity over time, we summarize the links between refinancing and consumption and describe the frictions impeding the refinancing channel. The review draws heavily on research emerging from the experience of the financial crisis of 2008–2009, as it highlights a combination of market, institutional, and policy-making factors that dulled the transmission mechanism. We conclude with a discussion of potential mortgage market innovations and the applicability of lessons learned to the ongoing stresses induced by the COVID-19 pandemic.
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McBeth, Mark K., Robert J. Tokle, and Susan Schaefer. "Media Narratives Versus Evidence in Economic Policy Making: The 2008-2009 Financial Crisis*." Social Science Quarterly 99, no. 2 (August 22, 2017): 791–806. http://dx.doi.org/10.1111/ssqu.12456.
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Masoud, Najeb, and Suleiman Abu Sabha. "Vision Crisis and Change Management in a Rapidly Changing World." International Journal of Management Excellence 3, no. 2 (June 30, 2014): 407–15. http://dx.doi.org/10.17722/ijme.v3i2.132.
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The purpose of this study is to investigate and discuss current literature on crisis management within organisational settings. The key characteristic of a crisis is that you cannot control it that’s why they call it crisis “management”. In order to be able to manage crises effectively and it sets out a framework for the decision-making process should understand the steps of effective crisis management. The results of this paper indicate that the impact of the global crisis is being driven by the country’s high dependence on management of a financial crisis which led to regulation is rising and is creating new challenges that need managing. It is hoped that the study will be able to fill the gap in research in the area of crisis vision and change management regulation due to the limited literature on this area in emerging countries. Knowledge of effective crisis management policy is a significant in terms of providing an in-depth understanding of how decision-making can deal with crises. Further study in this area would be beneficial in helping management organisations to manage crises effectively.
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Farrell, Patrick. "Nervous Giant: China and the Financial Crisis." Pitt Political Review 8, no. 1 (December 16, 2011): 8–11. http://dx.doi.org/10.5195/ppr.2011.12.
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While the current financial crisis is widely acknowledged to be global, surprisingly little attention has been paid to its effect on one of the largest players in the global economy. China has weathered the crisis extremely well, though its growth has slowed slightly. I will analyze this by looking at China’s purchases of debt, the Chinese holdings of debt in the United States and its growing holdings in Europe, and the policy decisions directing this. This shows an intriguing change in the policy decisions that led to China becoming such a large holder of American debt. China amassed its large holdings of debt from the United States by merit of the strong trade relationship between the two countries, as well as the stability of the U.S. dollar. However, China’s interest in buying up Italian debt and forming stronger bonds with other Eurozone and European countries seems to speak to a different motive. Rather than allowing its reserves of foreign capital to grow over time, as it did with its U.S. debt, China is making a more aggressive move in this case. Thanks to its relative stability during the crisis, I believe this shows us that China is seeking to both ensure the continued security of its economic growth and increase its economic influence, thus using the instability of the global financial crisis to kill two birds with one stone.
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Overhaus, Marco, and Ronja Kempin. "EU Foreign Policy in Times of the Financial and Debt Crisis." European Foreign Affairs Review 19, Issue 2 (May 1, 2014): 179–94. http://dx.doi.org/10.54648/eerr2014009.
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Since the financial and debt crisis in the Eurozone has become acute in 2010, political and academic attention first and foremost focused on its consequences for the single currency area and for the internal European integration process. In fact, the crisis has not only been a strain on the European integration process but also a central challenge for the EU as an international actor. It led to an erosion of the financial and budgetary basis of foreign policy - even if more pronounced on the national than the European level. It also accelerated a trend towards the economization of political priorities resulting - among other things - in deepening conflicts among EU Member States. These developments have in turn eroded both the effectiveness and the soft power of EU foreign policy. In this difficult environment, reforms of EU foreign policy making are at the same time more urgent and harder to achieve than before the crisis.
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Jiang, Yang. "Changing Patterns of Chinese Regionalism Policy-making." Copenhagen Journal of Asian Studies 28, no. 1 (December 10, 2010): 109–30. http://dx.doi.org/10.22439/cjas.v28i1.2833.
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China is increasingly active in regional cooperation, known as regionalism. This change has been catalyzed by the Asian financial crisis in 1997-98, supported by China's economic power and guided by national economic and political needs. Debates abound on whether China's rise is a threat or an opportunity for other Asian countries or for the world, although little research has been conducted on the policymaking for China's regional economic cooperation or economic diplomacy in general. This paper examines to what extent the trends of professionalization, corporate pluralization, decentralization and globalization (identified in Lampton 2001) from 1978-2000, exist in its policymaking on regional trade cooperation from 1978 to 2000. In this article, 'fragmentation' is used to integrate corporate pluralization and decentralization, as they are horizontal and vertical forms of fragmentation. This study therefore contributes to the understanding of China's 'post-WTO' foreign economic policy, economic diplomacy and its 'good-neighbour' diplomacy mulin waijiao.
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Högenauer, Anna-Lena, and David Howarth. "The democratic deficit and European Central Bank crisis monetary policies." Maastricht Journal of European and Comparative Law 26, no. 1 (February 2019): 81–93. http://dx.doi.org/10.1177/1023263x18824776.
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This article presents the argument that European Central Bank (ECB) policy-making from the start of the sovereign debt crisis in 2010 undermined the democratic legitimacy of the ECB. We start with the argument – defended by a number of scholars including Majone and Moravcsik – that where European Union (EU) policy-making is technocratic and does not have significant redistributive implications it can benefit from depoliticization that does not undermine the democratic legitimacy of this policy-making. This is notably the case where EU institutions have narrow mandates and are constrained by super-majoritarian decision-making. Prior to the international financial crisis, the ECB’s monetary policies were shaped entirely by the interpretation that its mandate was primarily to ensure low inflation. From the outbreak of the sovereign debt crisis, the ECB adopted a range of policies which pushed its role well beyond that interpretation and engaged in a form of redistribution that directly undermined treaty provisions.
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Solaiman, Md Golam, Abdul Kadar, Md Abul Kalam Azad, and Peter Wanke. "Examining the Impact of Global Financial Crisis in Bank Efficiency in Saudi Arabia." Central European Review of Economics and Management 1, no. 4 (December 29, 2017): 69. http://dx.doi.org/10.29015/cerem.580.
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Aim: The global financial crisis in 2008 has obstructed almost every bank around the world. This study examines the impact of global financial crisis on bank efficiency in Saudi Arabia. Design / Research methods: This study examines the impact of global financial crisis in bank efficiency applying the data envelopment analysis (DEA) during 2006-2014. Eleven commercial banks were examined from Saudi banking sector which covers almost half of total banks of Saudi Arabia. Scale efficiency, technical efficiency and productivity of banks have been examined for assessing the impact of financial crisis overtime. Conclusions / findings: Results reveal that banks in Saudi Arabia are inefficient in terms of technical and scale efficiency. The results also reveal these banks are not immune to the global financial crisis. Though only one bank has kept their unit efficient positions during the study period, the impact of global crisis on bank efficiency is found visible among other banks. The robustness of this study is also tested. Originality / value of the article: The importance of this study is twofold. First, examining bank efficiency with special attention to financial crisis. Second, Saudi Arabia needs sustainable growth to be ensured. Hence, examination of impact of financial crisis on bank efficiency of Saudi Arabia will surely help the policy makers for future planning. Implications of the research: The findings of this study will assist the policy makers in Saudi Arabia for taking corrective measure in advance in case of such future financial crisis. Moreover, the results will be used by the managers of the respective banks for decision making and problem solving.
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Warjiyo, Perry. "CENTRAL BANK POLICY MIX: KEY CONCEPTS AND INDONESIA’S EXPERIENCE." Buletin Ekonomi Moneter dan Perbankan 18, no. 4 (June 30, 2016): 379–408. http://dx.doi.org/10.21098/bemp.v18i4.573.
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The global crisis brings about renewed reforms on central bank policy. First, in addition to the traditional mandate of price stability, there are strong supports for additional mandate of the central bank to promote financial system stability. Second, macroprudential policy is needed to address procyclicality and build-up systemic risks in the macro-financial linkages of financial system that in most cases precede and deepen financial crisis. Third, monetary and financial stability are also prone to volatility of capital flows, especially for the emerging countries, and thus there is a need to manage them. The challenge is how to mix the policies of monetary, macroprudential, and capital flows management to meet the renewed mandate of central bank on monetary and financial stability. This paper reviews theoretical underpinnings and provides key concepts to address the issues. We show that central bank policy mix is both conceptually coherent and practically implementable. We provide a concrete recommendation with a reference from Indonesia’s experience since 2010. We also raise a number of challenges from practical point of views, especially relating to decision making process, forecasting model, and communication, for the success of the policy mix.
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Kay, Adrian. "UK Monetary Policy Change During the Financial Crisis: Paradigms, Spillovers, and Goal Co-ordination." Journal of Public Policy 31, no. 2 (August 2011): 143–61. http://dx.doi.org/10.1017/s0143814x11000055.
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AbstractPolicy responses to the tumult of the global financial crisis of 2007–9 prompt a consideration of the critical dimensions in specifying policy change. UK monetary policy between 2007 and 2009 is characterised by a remarkable degree of innovation yet counts as a ‘normal’ period of policy making under the Hall (1993) framework of policy change, the enduring workhorse of the comparative public policy field. This exposes its lack of conceptual refinement in describing significant but within paradigm policy change. This paper traces this failing to the notion of a policy paradigm, both its scale and the ideational mechanisms which bind policy change. The paper develops the UK monetary policy case to consider the potential of the recently-minted concept of a thermostatic policy institution for the development of Hall's framework; but finds analytical limitations in coping with significant policy spillovers. Suggestions are made to meet this important challenge for future research in policy studies on the specification of policy change.
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Maaravi, Yossi, and Ben Heller. "Studying the prominence effect amid the COVID-19 crisis: implications for public health policy decision-making." F1000Research 9 (May 7, 2021): 1356. http://dx.doi.org/10.12688/f1000research.27324.2.
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The novel coronavirus disease 2019 (COVID-19) has brought with it crucial policy- and decision-making situations, especially when making judgments between financial and health concerns. One particularly relevant decision-making phenomenon is the prominence effect, where decision-makers base their decisions on the most prominent attribute of the object at hand (e.g., health concerns) rather than weigh all the attributes together. This bias diminishes when the decision-making mode inhibits heuristic processes. In this study, we tested the prominence of health vs. financial concerns across two decision-making modes - choice (prone to heuristics) and matching (mitigates heuristics) - during the peak of the COVID-19 in the UK using Tversky et al.’s classic experimental paradigm. We added to the classic experimental design a priming condition. Participants were presented with two casualty-minimization programs, differing in lives saved and costs: program X would save 100 lives at the cost of 55-million-pound sterling, whereas program Y would save 30 lives at the cost of 12-million-pound sterling. Half of the participants were required to choose between the programs (choice condition). The other half were not given the cost of program X and were asked to determine what the cost should be to make it as equally attractive as the program Y. Participants in both groups were primed for either: a) financial concerns; b) health concerns; or c) control (no priming). Results showed that in the choice condition, unless primed for financial concerns, health concerns are more prominent. In the matching condition, on the other hand, the prominence of health concerns did not affect decision-makers, as they all “preferred” the cheaper option. These results add further support to the practical relevance of using the proper decision-making modes in times of consequential crises where multiple concerns, interests, and parties are involved.
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Aikman, David, Philip Barrett, Sujit Kapadia, Mervyn King, James Proudman, Tim Taylor, Iain de Weymarn, and Tony Yates. "Uncertainty in macroeconomic policy-making: art or science?" Philosophical Transactions of the Royal Society A: Mathematical, Physical and Engineering Sciences 369, no. 1956 (December 13, 2011): 4798–817. http://dx.doi.org/10.1098/rsta.2011.0299.
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Uncertainty is pervasive in economic policy-making. Modern economies share similarities with other complex systems in their unpredictability. But economic systems also differ from those in the natural sciences because outcomes are affected by the state of beliefs of the systems' participants. The dynamics of beliefs and how they interact with economic outcomes can be rich and unpredictable. This paper relates these ideas to the recent crisis, which has reminded us that we need a financial system that is resilient in the face of the unpredictable and extreme. It also highlights how such uncertainty puts a premium on sound communication strategies by policy-makers. This creates challenges in informing others about the uncertainties in the economy, and how policy is set in the face of those uncertainties. We show how the Bank of England tries to deal with some of these challenges in its communications about monetary policy.
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Dias de Moraes, Simone, Silvania Neris Nossa, Nádia Cardoso Moreira, and Talles Vianna Brugni. "Asset divestments, economic crisis, and the future performance of companies." Contextus – Revista Contemporânea de Economia e Gestão 20 (September 20, 2022): 266–79. http://dx.doi.org/10.19094/contextus.2022.78644.
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This paper investigated the impact of asset divestments made by financially constrainedcompanies on their future performance, as well as their potential for reversing past losses.After applying the pairing of the companies listed, the estimation of the relationships of thevariables took place through GMM and LOGIT. The research findings indicate that there isevidence that the sale of assets by companies with financial constraints contributes to futureperformance. A contribution of this research is for managers who have empirical results thathave not yet been discussed in the Brazilian literature and that can serve as support indecision-making on the policy of selling or maintaining assets
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Benguria, Felipe, and Alan M. Taylor. "After the Panic: Are Financial Crises Demand or Supply Shocks? Evidence from International Trade." American Economic Review: Insights 2, no. 4 (December 1, 2020): 509–26. http://dx.doi.org/10.1257/aeri.20190533.
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Are financial crises a negative shock to aggregate demand or supply? This is a fundamental question for research and policy making. Arguments for stimulus usually presume demand-side shortfalls; arguments for tax cuts or structural reform look to the supply side. Resolving the question requires models with both mechanisms, and empirical tests to tell them apart. We develop a small open economy model, where a country is subject to deleveraging shocks that impose binding credit constraints on households and/or firms. These financial crisis events leave distinct statistical signatures in the time series record that divide sharply between each type of shock. Empirical analysis reveals a clear picture: after financial crises the dominant pattern is that imports contract, exports hold steady or even rise, and the real exchange rate depreciates. History shows financial crises are predominantly a negative shock to demand. (JEL F14, F31, F41, G01, N10, N20, N70)
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EICHENGREEN, BARRY. "Economic History and Economic Policy." Journal of Economic History 72, no. 2 (May 30, 2012): 289–307. http://dx.doi.org/10.1017/s0022050712000034.
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“The lessons of history” were widely invoked in 2008/09 as analysts and policymakers sought to make sense of the global financial crisis. Specifically, analogies with the early stages of the Great Depression of the 1930s were widely drawn. Building on work in cognitive science and literature on foreign policy making, this article seeks to account for the influence of this particular historical analogy and asks how it shaped both perceptions and the economic policy response. It asks how historical scholarship might be better organized to inform the process of economic policymaking. It concludes with some reflections on how research in economic history will be reshaped by the crisis.
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Schemmel, Jakob. "Regulating European financial markets between crisis and Brexit." Journal of Financial Regulation and Compliance 28, no. 4 (June 7, 2019): 503–14. http://dx.doi.org/10.1108/jfrc-04-2018-0057.
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Purpose This paper aims to demonstrate how the European regulatory structure of the financial markets has changed after the financial crisis. Drawing from these findings, it discusses how the regulatory system might change and be adapted to a post-Brexit financial market. Design/methodology/approach The paper takes a systematic/legal approach. First, it analyses the recent reform against the background of European law and corresponding research. In a second step, it discusses the implications of Brexit by examining policy and legal contributions. Findings The changes to the European regulatory and supervisory structure of the financial markets have proven to be a pacemaker for European administrative and treaty law. Long-standing principles have fundamentally changed. Brexit, on the other hand, even though equally severe might not lead to similar results. Practical implications The paper proposes a limited reform to the existing regulatory structure to consolidate developments, ease constitutional frictions and enable the regulatory authorities to react quickly to volatile markets via rule making. Originality/value The paper draws attention to an almost unnoticed development in European law. It also illustrates the effects of Brexit on the European financial markets.
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Savina, Anna V. "Features of financial and legal regulation of public relations in the context of mitigating economic consequences in the fight against the COVID-19 pandemic." Current Issues of the State and Law, no. 20 (2021): 670–77. http://dx.doi.org/10.20310/2587-9340-2021-5-20-670-677.
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The relevance of this study is due to the fact that in the modern world, including Russian, law and order, a special mechanism of “anti-crisis regulation” is being transformed, which in the context of a pandemic has be-come heterogeneous, with a permanent convergence of the norms of private and public law. Proceeding from the fact that anti-crisis regulation is pre-dominantly part of the state policy in a particular area, it is proposed to un-derstand that the epidemiological crisis itself is the starting point for other crisis phenomena (financial, demographic and other crises), the prevention or reduction of the impact of which is the most important task of any state. We consider the relevant aspects of crisis management. We analyze the catego-ries of countercyclical and pro-cyclical regulation, investigated the issues of fiscal policy. We pay attention to behavioral economics and the role of the state in its functioning. We note that the directions of spending budget funds in one way or another depend on the behavioral economy, which is not al-ways manageable. We provide an analysis of the concept of “choice architecture” in the aspect of a “push” decision-making mechanism, in which a special role is assigned to the state. We emphasize the growing importance of financial programs to support small businesses or citizens wishing to become individual entrepreneurs, self-employed.
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Nakrošis, Vitalis, Ramūnas Vilpišauskas, and Egidijus Barcevičius. "Making change happen: Policy dynamics in the adoption of major reforms in Lithuania." Public Policy and Administration 34, no. 4 (February 8, 2018): 431–52. http://dx.doi.org/10.1177/0952076718755568.
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Previous studies of policy reforms that were undertaken during the recent global financial crisis mostly focused on fiscal consolidation, with much less attention paid to other structural reforms. Although the impact of such external shocks as crisis or change of government on systemic change is widely acknowledged, little agreement exists on which intervening factors can best account for successes or failures of reform commitments. In this article, we propose an innovative explanation that focuses on the variables of political attention and change leadership, and which analyses temporal political and policy dynamics of reform decision making. We conduct a comparative analysis of the four performance priorities of the 2008–2012 Lithuanian Government led by Prime Minister A. Kubilius. The article concludes that a combination of persistent high political attention to policy reforms and strong reform leadership aimed at mobilising coalition support are essential factors in fulfilling reform commitments.
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Ocolişanu, Andreea, and Virgil Candale. "Current Challenges in Allocating Financial Resources for Public Investment." International conference KNOWLEDGE-BASED ORGANIZATION 28, no. 2 (June 1, 2022): 46–50. http://dx.doi.org/10.2478/kbo-2022-0047.
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Abstract Public investment projects must be linked to the priorities of Cohesion Policy and the Sustainable Development Strategy, highlighting the importance of the investment process and the allocation of funding sources. Therefore, steps such as the evaluation, selection and prioritization of public investment projects are key elements in the public investment process, in order to create a stronger and more sustainable future in the face of crises. This paper aims to clarify some issues related to the current challenges of allocating financial resources for public investment in the context of global economic crises. Public investment management makes the difference in making quality public investment and progress in achieving sustainable development goals. However, the present reality shows that ensuring the efficient management of public investment projects will always encounter difficulties, of which the most threatening are considered to be represented by global economic crises and more recently by the COVID 19 pandemic crisis, through their widespread effects on economies. Therefore, strengthening public investment management must be a priority in public investment policies to maximize the impact of available public resources.
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Zia-Ur Rehman, Muhammad, Zahid Bashir, and Asia Baig. "Economic Turmoil - Oil Prices and the Middle East Crisis." Global Economics Review III, no. I (June 30, 2018): 71–80. http://dx.doi.org/10.31703/ger.2018(iii-i).08.
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This study focuses on Economic turmoil due to issues of the Middle East and its relation to oil prices, hence transposing the crisis to other economies of the world. A qualitative and logical resigning technique is used during the study. The author finds that the Middle East has a lot of issues related to oil prices, oil production. Most important are wars and conflicts within the region, terrorism, radicalism, the influence of US in the region, week government, and issues of politics. This study provides information to the government in policy making, in investment decisions, in politics and in financial decision making related to oil prices and its production in the region
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Tobisova, Alica, Andrea Senova, and Robert Rozenberg. "Model for Sustainable Financial Planning and Investment Financing Using Monte Carlo Method." Sustainability 14, no. 14 (July 18, 2022): 8785. http://dx.doi.org/10.3390/su14148785.
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The article deals with current issues of finance and investment planning with a selective focus on financial decision-making processes using sophisticated software tools. The article has a special significance in this period when it is necessary to re-evaluate and consider ways of appropriate and effective investment and financial policy in view of the restrictions in enterprises in Slovakia, which brings with it the global pandemic COVID-19 or another crisis in enterprises. The aim of the article is to propose a methodology as a tool for streamlining the investment activities of companies. The proposed methodology combines the usability of traditional and modern economic methods, making it an important tool for the sustainability and competitiveness of enterprises. Three variants of investment decisions in the enterprise were simulated using simulation in terms of two approaches. The first approach focuses on mathematical–economic calculations of deterministic modeling through traditional software tools. The second stochastic modeling uses the simulation of financial risks using a modern software tool using the Monte Carlo method. The output is the creation of a graphical management model in the form of an algorithm.
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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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Lu, Xiao Jun. "A Brief Analysis and Inspiration Regarding the Development Experience of New Emerging Industries Overseas." Applied Mechanics and Materials 448-453 (October 2013): 4224–27. http://dx.doi.org/10.4028/www.scientific.net/amm.448-453.4224.
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Emerging industry has become a common choice of the multi-national facing financial crisis and achieving sustainable economic development. By summarizing and analizing the advanced experience of foreign emerging industries, we have learned successful experience for our country. As a refernce, the development of new emerging industries and policy making could be improved.
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Pál, Tamás, and Gabriella Lamanda. "Needed but Rejected: How to Implement the Financial Stability Objective into Monetary Policy?" Periodica Polytechnica Social and Management Sciences 26, no. 1 (June 14, 2017): 79. http://dx.doi.org/10.3311/ppso.10706.
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The 2008 crisis forced central bankers and the representatives of academic literature to reassess the prevailing consensus on practice of monetary policy. Among other topics, the spotlight also fell on the question that how financial stability must be treated. Debate renewed on whether the central bank must play an active role in preventing and managing market turmoil, which consists of leaning against the wind of markets. This paper summarises opinions on this issue and offers our own conclusions. We found that currently neither the theoretical background nor empirical experience provide compelling evidence or a reference for central bankers to move away from their existing monetary policy framework and adopt a leaning against the wind policy. We conclude that the direct integration of financial stability considerations into monetary policy decision-making - i.e. as a form of rules - is not expected in the near future. However, we think that the debate remains open for two reasons: firstly, there is some uncertainty regarding the success of macroprudential regulation and its proper cooperation with monetary policy and secondly, the theoretical development of the implementation of financial cycles into monetary decision-making may also yield results.
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Mukerji, Purba, Khalid Saeed, and Neal Tan. "An Examination of the Influence of Household Financial Decision Making on the US Housing Market Crisis." Systems 3, no. 4 (December 8, 2015): 378–98. http://dx.doi.org/10.3390/systems3040378.
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This paper investigates the impact of what the extant literature has come to view as some of the major causes of the 2007 US housing market crisis. In particular we investigate the hypothesized effect of, lax financial regulations, the “savings glut” that is invested in the US from abroad, government support for increased home ownership, rising homeowners’ equity due to the real-estate boom, expansionary monetary policy, and bankruptcy reform. We examine how these hypothesized causes, working through household and institutional level decision-making, based on information availability and incentives, influenced the outcomes in the market for homes. Using a system dynamics model of household finance, we overlay the hypothesized causes chronologically to extrapolate their real-world simultaneous impact and test the hypothesis that they could have together led to the crisis, by simulating and checking against observed data. We find that with the exception of lax financial regulations, each cause by itself provides only a partial explanation of the crisis. Interestingly, the controversial expansionary monetary policy of the Federal Reserve, blamed by some for fueling the crisis, actually prevents the housing market boom from becoming too large. However on the downside, it discourages household savings and causes the fall in home prices to be deeper, due to weak household finances that result from low savings. We confront our model’s assumptions and outcomes with US economic data. We find our model assumptions are justified and simulation results are strongly supported by the data.
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Simon, György. "Market reforms in Russia: Problems and prospects." Medjunarodni problemi 56, no. 2-3 (2004): 155–88. http://dx.doi.org/10.2298/medjp0403155s.
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The author analyses the economic reforms that have been implemented in Russia since 1991. In his opinion initial attempts to introduce market reforms by applying the shock therapy and forced-pace privatisation of state-owned enterprises caused high political and social costs to the Russia?s fragile democracy. Therefore the radical reform policy was temporarily suspended while the transition to a market economy was proceeded inconsistently and often unevenly. After the acute financial crisis took place in August 1998 the reform policy has been given new impetus. In the last few years substantial progress has been made in the process of privatisation implementation of reforms in the financial sphere, energy sector, in the approach to the agriculture, in the employment policy, in making changes of the tax and pension systems. All these changes contributed to attaining the sustainable economic growth. The author concludes that for the persisting crisis in a number of areas, the future of the Russian market reforms still remains largely uncertain.
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Barrell, Ray. "Policy Responses to the Collapse of the Financial Sector: Introduction." National Institute Economic Review 211 (January 2010): R1—R2. http://dx.doi.org/10.1177/0027950110364091.
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The downturn in global economic activity that started in 2008 was turned into a major recession after the failure of Lehman Brothers in September 2008. It appears that world output fell by more than 1 per cent in 2009, and OECD output probably fell by around 3½ per cent. The effects on output were more marked in the Euro Area and the UK than they were in the US or Canada, which partly reflects the policy responses chosen by Treasuries and Central Banks. The financial crisis that drove the recession affected banks in the US, the UK, the Euro Area and the rest of Europe rather more than it did those in Canada, Australia and Japan. However, recessions have been common, with only Australia and Poland appearing to avoid them. The financial crisis led rapidly to a freezing of trade credit, which caused world trade to decline very sharply at the beginning of 2009. The financial crisis also led to an increase in risk premia in investment decision-making and hence to a decline in the equilibrium capital output ratio, which caused a sharp reduction in the demand for capital goods. Combined with credit rationing effects for firms needing access to borrowing, this induced a collapse in investment. Trade channels made the crisis global, as did movements in exchange rates. Interest rates were cut sharply in the US, Europe and Japan, and approached levels seen in Japan for the previous decade. As a result the yen appreciated strongly, and the combination of the effects of this appreciation on competitiveness and the decline in investment goods trade meant that Japan suffered worse than most other countries, at least in the short term.
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Kostrova, M. B. "THe possibilities of the criminal code and criminal policy in overcoming the economic crisis." Russian Journal of Legal Studies 3, no. 3 (September 15, 2016): 38–41. http://dx.doi.org/10.17816/rjls18151.
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It is stipulated that the possibilities of the criminal law in overcoming the economic crisis are limited, which is caused by the branch specificity of its subjects, the methods, tasks and functions. Determines the possibility of increasing the capacity of the criminal law to overcome the economic crisis. We analyze one of the areas of cooperation between the economy and legal policy - law-making in the field of criminal policy in the context of limited budget resources. On the basis of modern approaches to the financial and eco- nomic feasibility «anti-crime» bills it concludes that currently exists deliberate incompleteness of calculating the budget allocations for the implementation of inter-related components of the criminal policy, offered solutions to the identified problems.
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Zhang, Zhimin, and Xin Kai. "A Study on China’s Deleveraging and Financial Stability Under the Background of Financial Globalization." International Journal of Economics and Finance 13, no. 8 (July 8, 2021): 8. http://dx.doi.org/10.5539/ijef.v13n8p8.
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This paper studies the impact of financial globalization and leverage ratio on China’s financial stability. After the 2008 financial crisis, maintaining the stability of the financial system is China’s core task. However, due to the increasing degree of China’s opening up policy, the risk of foreign shock is increasing. Meanwhile the domestic policy of deleverage is implemented, so the superposition of domestic and foreign situations aggravates the uncertainty of financial stability. Therefore, this paper selects the relevant variables to empirically study the real impact of financial globalization and leverage ratio on China’s financial stability through VAR model. The results show that the indicators of financial stability are most affected by their own inertia, and the deepening of financial globalization and the increasing of leverage ratio will have a positive effect on financial stability at the beginning, but in the later stage it fluctuates a lot. Based on the findings, the China government should put more emphasis on dealing with the relationship between leverage ratio, foreign risks and financial stability when making domestic financial policies.
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Müller, Gernot J. "Fiscal Austerity and the Multiplier in Times of Crisis." German Economic Review 15, no. 2 (May 1, 2014): 243–58. http://dx.doi.org/10.1111/geer.12027.
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Abstract To address concerns about the sustainability of public debt, most industrialized countries shifted towards fiscal austerity after 2010. A popular concern is that austerity is self-defeating, because fiscal multipliers can be large. Specifically, a number of recent studies find that multipliers tend to be large during financial crises and/or if monetary policy is constrained by the zero lower bound. However, public debt crises tend to have an offsetting effect by making multipliers smaller than during normal times. Consequently, while austerity is no cure for all, it is unlikely to be literally self-defeating when sovereign risk is high.
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McGimpsey, Ian. "Late neoliberalism: Delineating a policy regime." Critical Social Policy 37, no. 1 (July 8, 2016): 64–84. http://dx.doi.org/10.1177/0261018316653552.
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In the aftermath of the financial crisis, policy-making in post-industrial nations has been widely characterised in terms of austerity. Yet this provides an insufficient basis for an understanding of social policy-making at this time. I argue for a ‘late neoliberal’ phase distinguished by a change in the regime governing the emergence of public service formations. I work from the example of UK policy discourse to demonstrate how in late neoliberalism austerity, social investment and localism operate in conjunction. Beyond fiscal constraint, this conjunction serves to move social policy on from ‘quasi-marketisation’ to reflect more closely the logic and forms of finance capital. The effects of this change can be seen in the reconstitution of ‘value’ in public services, how capital is distributed, and in the subjectivating force of policy. Ultimately late neoliberalism serves to sustain and reproduce familiar relations of domination.
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Dinçer, Hasan, Serhat Yüksel, and Seçil Şenel. "Analyzing the Global Risks for the Financial Crisis after the Great Depression Using Comparative Hybrid Hesitant Fuzzy Decision-Making Models: Policy Recommendations for Sustainable Economic Growth." Sustainability 10, no. 9 (September 2, 2018): 3126. http://dx.doi.org/10.3390/su10093126.
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The aim of this study is to analyze the effects of global risks on financial crises. For this purpose, five different outstanding crises after the Great Depression of 1929 are taken into the consideration. Additionally, four different dimensions are selected regarding global risk by considering the Global Risk Report. Moreover, the hesitant fuzzy DEMATEL, the hesitant fuzzy VIKOR, and the hesitant fuzzy TOPSIS methodologies are used to reach this objective. We concluded that, with respect to global risks, the industry-based dimension has the highest importance in comparison to other dimensions. In addition, we also identified that the 2010 European debt crisis and the 1982 Latin American debt crisis were the most influenced crises in terms of global risk. The main reason for this is that the macroeconomic problems such as high inflation and unemployment had negative impacts on the industries of these countries. Another important point is that the results of the hesitant fuzzy VIKOR and hesitant fuzzy TOPSIS models are quite different, but they are the most similar when the experts do not reach the consensus. This situation shows that this analysis is quite appropriate with respect to the hesitant approach. While considering these aspects, we recommended that countries should firstly focus on the solutions related to industry level problems in order to minimize the global risk. Owing to this issue, it can be more possible to reach sustainable economic growth in the world.
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McCoy-Simmons, Casey. "OER State Policy Discourse." Journal of Open Educational Resources in Higher Education 1, no. 1 (October 26, 2022): 117–36. http://dx.doi.org/10.13001/joerhe.v1i1.7183.
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In response to rising tuition, state disinvestment, and financial uncertainty over the years, open educational resources (OER) have been introduced as a solution to address the college affordability crisis (Colvard et al., 2018). The Scholarly Publishing and Academic Resources Coalition (SPARC) sees OER as not just a way to lift the financial burden of educational materials, but also as a path to improving teaching and learning, strengthening the economy, advancing societal goals, and breaking down barriers to education (SPARC, n.d.-b). State policymakers have created grant programs or other initiatives to incentivize the creation, use, or expansion of OER in an effort to decrease costs associated with postsecondary education. This raises the question of how state policy discourse defines the problem that then informs the solutions addressed in OER legislation and how introducing an equity discourse into OER policy making can strengthen efforts to remove barriers to higher education.
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Eshaghoff, Talin, and Tao Gao. "MNCs' Propensities to Reevaluate and Change Foreign Modes of Operations during a Financial Crisis." Journal of International Business and Economy 5, no. 1 (December 1, 2004): 33–52. http://dx.doi.org/10.51240/jibe.2004.1.3.
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The major goal was to investigate multinational companies??(MNCs) propensities to reevaluate and change their foreign operational modes during a financial crisis in a big emerging market. We grounded our study in the contingency perspective of foreign entry mode decisions, which implies that foreign entry/operating mode decisions should be dynamic in nature, and fine-tuning should take place whenever major changes occur to contingency factors. In a survey conducted during the current Argentine financial crisis, we found that the majority of multinational firms (64.4%) indeed regarded a reevaluation of the foreign mode of operations during the crisis as important, while about one third viewed it as either neutral or unimportant. On whether to change their level of resource commitments during the crisis, most firms (57.7%) would remain the same, 35.6% prefer small changes, and 6.4% would consider major changes. MNCs using exporting, licensing, joint ventures, and sole ventures were found to be equally patient during the crisis. Exporters and licensors willing to change their foreign operational modes uniformly preferred increases in resource commitments, mostly in the form of FDI. Conversely, 4.2% of joint venture partners and 15.8% of sole venture owners chose to decrease resources during the crisis. The research, managerial, and policy-making implications were discussed.
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Wetzstein, Steffen. "The global urban housing affordability crisis." Urban Studies 54, no. 14 (July 12, 2017): 3159–77. http://dx.doi.org/10.1177/0042098017711649.
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This critical commentary confronts and explores the – so far under-recognised and under-researched – emergent global crisis of urban housing affordability and affordable housing provision. This crisis results from the fact that housing-related household expenses are rising faster than salary and wage increases in many urban centres around the world; a situation triggered by at least three global post-Global Financial Crisis megatrends of accelerated (re)urbanisation of capital and people, the provision of cheap credit and the rise of intra-society inequality. Reflecting on the recent findings of extensive comparative ethnographic research across Western countries, and analytically approaching housing affordability and affordable housing issues from a broadly understood intersection of political and economic spheres (e.g. issues of state and market, governance and regulation, policy and investment), the paper pursues four key objectives: raising awareness of the crisis, showing its extent and context-specificity but also the severe social as well as problematic spatial implications, linking current developments to key academic debates in housing studies and urban studies, and importantly, developing a research agenda that can help to redress the currently detectable ‘policy–outcome’ gap in policy making by asking fresh and urgent questions from empirical, theoretical and political viewpoints. This intervention ultimately calls for more dedicated and politicised knowledge production towards achieving affordable urban futures for all.
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Assa, Jacob. "Finance, social value, and the rhetoric of GDP." Finance and Society 4, no. 2 (November 30, 2018): 144–58. http://dx.doi.org/10.2218/finsoc.v4i2.2869.
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The global financial crisis is usually seen as a failure of neoclassical economic theory and neoliberal policy, but it also represented an epistemological failure. Forecasters who missed the crisis neglected to include the financial sector in their models, while aggregate indicators such as GDP failed in spite (or perhaps because) of their heavy emphasis on financially driven growth. In contrast to both critics and proponents of GDP who see it as a purely statistical measure, this article argues that GDP is in fact a form of numerical rhetoric. Political messages in such estimates were explicit until the early twentieth century, but have since become implicit in hidden assumptions. To uncover the narratives built-in to GDP’s view of finance, the article conducts a thought-experiment comparing GDP with two counterfactual indicators corresponding to historical views of finance as either non-productive or an actual cost to society. The analysis shows how changing this single assumption leads to very different narratives regarding the class-balance of workers vs. capitalists, the relative importance of consumption, and the extent of space that exists for public policy to influence the economy. The article concludes with some thoughts on making the implicit assumptions in GDP explicit, and opening up the debate to the broader public in a transparent way.
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Christiano, Lawrence J., Martin S. Eichenbaum, and Mathias Trabandt. "On DSGE Models." Journal of Economic Perspectives 32, no. 3 (August 1, 2018): 113–40. http://dx.doi.org/10.1257/jep.32.3.113.
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The outcome of any important macroeconomic policy change is the net effect of forces operating on different parts of the economy. A central challenge facing policymakers is how to assess the relative strength of those forces. Economists have a range of tools that can be used to make such assessments. Dynamic stochastic general equilibrium (DSGE) models are the leading tool for making such assessments in an open and transparent manner. We review the state of mainstream DSGE models before the financial crisis and the Great Recession. We then describe how DSGE models are estimated and evaluated. We address the question of why DSGE modelers—like most other economists and policymakers—failed to predict the financial crisis and the Great Recession, and how DSGE modelers responded to the financial crisis and its aftermath. We discuss how current DSGE models are actually used by policymakers. We then provide a brief response to some criticisms of DSGE models, with special emphasis on criticism by Joseph Stiglitz, and offer some concluding remarks.
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Copley, Jack, and Maria Eugenia Giraudo. "Depoliticizing space: The politics of governing global finance." Environment and Planning C: Politics and Space 37, no. 3 (July 4, 2018): 442–60. http://dx.doi.org/10.1177/2399654418786249.
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This article argues that neoliberal state restructuring is best theorized by bringing two critical approaches into conversation: the spatial concepts of de/reterritorialization and rescaling, and the depoliticization thesis. The globalization of economic activities paradoxically requires the expansion of territorially-bounded regulatory infrastructures, which Brenner terms the dialectic of de- and reterritorialization. Yet this dynamic entails a serious governing dilemma, not explored by the spatial literature. By assuming greater political responsibility for an increasingly global, financialized form of capital accumulation, states risk devastating legitimacy crises if accumulation falters – a phenomenon identified by the depoliticization literature. States have responded to this dilemma by depoliticizing policy-making through the rescaling of political authority. By moving accountability mechanisms away from central government, policy-makers can insulate themselves from popular backlash in case an economic crisis demonstrates the failure of their reterritorialized regulatory infrastructure. This article will apply this hybrid approach to the case of Margaret Thatcher’s 1986 Financial Services Act. New archival evidence suggests that this policy represented a strategy to facilitate the Big Bang’s globalization of Britain’s financial sector through the creation of an unbiased, reterritorialized legal framework for the City of London. Yet political accountability for this regulatory system was rescaled to an obscure, quasi-governmental scale, so as to absorb any political backlash from future financial crises and insulate government legitimacy. This article thus contends that neoliberal state restructuring can be understood as the coalescence of two spatial governing strategies: reterritorializing to deterritorialize, and rescaling to depoliticize.
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Ivanović, Valentina. "Financial Independence of Central Bank through the Balance Sheet Prism." Journal of Central Banking Theory and Practice 3, no. 2 (May 1, 2014): 37–59. http://dx.doi.org/10.2478/jcbtp-2014-0010.
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Abstract The main reason for central bank independence lies in the fact that it is necessary to clearly distinguish spending money from the ability of making money. Independence of central banks is now a characteristic of almost all developed and highly industrialized countries. In this respect, it represents an essential part of the overall economic reality of these countries. Over the past decade or somewhat earlier, the issue of importance of central bank independence has been raised in developing countries, making the institutional, functional, personal and financial independence of central banks current topics for consideration. The key reason for the growing attention to financial independence of central banks is due to the effects of the global financial crisis on their balance sheets and therefore the challenges related to achieving the basic goals of the functioning of central banks - financial stability and price stability. Financial strength and independence of central banks must be developed relative to the policy and tasks that are carried out and risks they face in carrying out of these tasks. Financial independence represents a key base for credibility of a central bank. On one hand, the degree of credibility is associated with the ability of central banks to carry out their tasks without external financial assistance. In order to enhance the credibility of central bank in this regard, it must have sufficient financial strength to absorb potential losses and that power must be continuously strengthened by increasing capital and rearranging profit allocation arrangements. This is particularly important in times of crisis.
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RIET, AD VAN. "A NEW ERA FOR MONETARY POLICY: CHALLENGES FOR THE EUROPEAN CENTRAL BANK." Singapore Economic Review 62, no. 01 (March 2017): 57–86. http://dx.doi.org/10.1142/s0217590817400033.
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Since the start of the global financial crisis, the European Central Bank (ECB) has faced exceptional challenges in fulfilling its price stability mandate, marking the start of a new era of monetary policy-making for the eurozone. This paper reviews the ECB’s evolving response from mid-2007 to early-2015, showing how it combined the standard tool of adjusting its policy interest rates with non-standard passive and active balance-sheet measures, accompanied by a forward guidance of its intended monetary stance. Altogether, the ECB stayed focused on price stability while fulfilling the two classical roles of lender of last resort to resolve money market tensions and market maker of last resort to repair monetary transmission. Addressing the many challenges was complicated by the nexus between fragile banks and vulnerable governments, the ensuing financial fragmentation and the complex institutional and political structure of the eurozone. Looking ahead, the new reinforced European financial architecture could make the ECB’s monetary policy task of maintaining price stability for the eurozone easier to accomplish.
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Baležentis, Tomas, Mangirdas Morkūnas, Agnė Žičkienė, Artiom Volkov, Erika Ribašauskienė, and Dalia Štreimikienė. "Policies for Rapid Mitigation of the Crisis’ Effects on Agricultural Supply Chains: A Multi-Criteria Decision Support System with Monte Carlo Simulation." Sustainability 13, no. 21 (October 28, 2021): 11899. http://dx.doi.org/10.3390/su132111899.
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This paper proposes an integrated approach towards rapid decision-making in the agricultural sector aimed at improvement of its resilience. Methodologically, we seek to devise a framework that is able to take the uncertainty regarding policy preferences into account. Empirically, we focus on the effects of COVID-19 on agriculture. First, we propose a multi-criteria decision-making framework following the Pugh matrix approach for group decision-making. The Monte Carlo simulation is used to check the effects of the perturbations in the criteria weights. Then, we identify the factors behind agricultural resilience and organize them into the three groups (food security, agricultural viability, decent jobs). The expert survey is carried out to elicit the ratings in regard to the expected effects of the policy measures with respect to dimensions of agricultural resilience. The case of Lithuania is considered in the empirical analysis. The existing and newly proposed agricultural policy measures are taken into account. The measures related to alleviation of the financial burden (e.g., credit payment deferral) appear to be the most effective in accordance with the expert ratings.