568 results
Search Results
2. Local paper.
- Author
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Leighton, Oonagh
- Subjects
FINANCIAL crises ,DEBT management ,ECONOMIC history - Abstract
Focuses on the need for financing in central European cities, particularly between countries on the European Union fast-track and Commonwealth of Independent States. Regions with feasible borrowing plans; Actions taken by the Russian government to alleviate the crisis faced by European countries; Details on bad debt management.
- Published
- 1998
3. Real Exchange Rates Behavior in Selected EU Member States: Assessment of the Financial Crisis Effect.
- Author
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Stavárek, Daniel
- Subjects
FINANCIAL crises ,FOREIGN exchange rates ,MACROECONOMICS ,ECONOMICS ,ECONOMIC policy - Abstract
The real exchange rate is one of the crucial macroeconomic variables for all open economies. Therefore, analysis of its evolution as well as volatility and behavior of its components (nominal exchange rate and relative prices) is of critical importance for both the economic theory and economic policy. In this paper, we focus on the interaction among the component variables of the real exchange rate. The main objective of this paper is evaluate how the relative prices affect the exchange rate. We calculate volatility measure and apply the Granger causality test, variance decomposition and impulse-response function in the Vector Auto Regression model for six selected non-euro EU member states (Czechia, Hungary, Poland, Denmark, Sweden and the United Kingdom). The calculations are conducted for two periods distinguished as the pre-crisis period and the post-crisis period. The results differ substantially between the periods and provide evidence that the relative prices play more important role in explaining the exchange rate behavior in the post-crisis period than before its origin. [ABSTRACT FROM AUTHOR]
- Published
- 2015
4. Who sets the agenda? The influence of the European Commission and the European Council in shaping the EU's response to the European sovereign debt crisis.
- Author
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Moloney, David
- Subjects
EUROPEAN Sovereign Debt Crisis, 2009-2018 ,FINANCIAL crises ,PUBLIC debts ,ECONOMIC conditions in the Eurozone ,EUROZONE economic policy - Abstract
The aim of this paper is to assess whether the European Commission or the European Council shaped the European Union's response to the sovereign debt crisis through their respective agenda-setting powers. The paper uses process tracing complemented with interviews to demonstrate the influence of the European Commission and the European Council in this regard. Theoretically, the paper is anchored by a framework of agenda-setting dynamics which is used to assess the European Commission and European Council's influence in reforming the European Union's economic governance framework. A systematic analysis of the negotiations of these reforms between 2010 and 2013 indicate that the European Council wielded policy influence through its agenda-setting powers. Conversely, the European Commission exercised less influence in those negotiations, despite its position as the European Union's de facto agenda-setter. [ABSTRACT FROM AUTHOR]
- Published
- 2021
- Full Text
- View/download PDF
5. Medium term economic dynamics of the Euro Area.
- Author
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Mc Morrow, K., Orlandi, F., Raciborski, R., Roeger, W., Vandermeulen, V., in'tVeld, J., and Vogel, L.
- Subjects
ECONOMIC conditions in the Eurozone ,FINANCIAL crises ,ECONOMIC reform ,GROSS domestic product ,MONETARY policy ,TWENTY-first century - Abstract
This paper analysis the Euro area's growth over the last 15-20 years and provides a medium term outlook. We find that in a no policy change scenario, growth will be subdued, essentially reflecting the influence of weak pre-crisis trends, most notably for TFP (especially since the mid-1990's). This trend will be exacerbated over the coming decade by the ongoing negative fallout from the financial crisis and by the emerging drag on growth emanating from ageing populations. Unlike in standard recessions, the GDP losses relative to a pre-crisis projection appear to be permanent. The picture presented could potentially improve with the implementation of an ambitious programme of structural reforms focussed on boosting employment and productivity. Since the usefulness of such policies is controversial in the current juncture with constrained monetary policy, the paper also looks at the impact of such reforms in a realistically calibrated model and concludes that fears of large permanent deflationary effects from structural reforms are exaggerated. [ABSTRACT FROM AUTHOR]
- Published
- 2016
- Full Text
- View/download PDF
6. Financial competitiveness analysis in the Hungarian dairy industry.
- Author
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Tálas, Dorisz and Rózsa, Andrea
- Subjects
ECONOMIC competition ,ECONOMIC impact of the dairy industry ,HUNGARIAN economy ,FINANCIAL crises ,WORKING capital ,MANAGEMENT - Abstract
Purpose – The purpose of this paper is to analyse time-series change of the competitiveness of leading companies of the sector based on their financial position regarding the period of financial crisis. Design/methodology/approach – First, high level of revenue concentration was proved; consequently, strong competitive situation among few competitors was realised. Corporations having three common features (high amount of equity, high revenue and diversified product structure) were included in the sample. As the methodological background financial parameters were assigned to the definition of corporate competitiveness, and then comparative and comprehensive financial analysis of competitors was accomplished. Using relevant studies, liquidity based on balance sheets and cash flow statements, working capital processes, conventional and cash-flow based profitability were analysed. Findings – It was proved that sample companies continuously improved the efficiency of working capital management indicated by the decrease of the average cash conversion cycle from 45 to 23 days. It was realised that there is a Hungarian-owned firm having outstanding financial performance; consequently, it has significant position among competitors. This company has further opportunity to increase its market share and competitiveness in the future. Finally, important characteristics of the sector were identified concerning the low level of technological improvements (the average ratio was below 3 per cent of the revenue), and unfavourable profitability processes. Originality/value – In this paper, a separate analytic framework is established in view of the application of financial indicators to analyse competitiveness. This kind of analysis was not executed before in this sector. [ABSTRACT FROM AUTHOR]
- Published
- 2015
- Full Text
- View/download PDF
7. Did the economic crisis change V4 trade patterns? The case of intra-industry trade.
- Author
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TOPOROWSKI, Patryk Emanuel
- Subjects
FINANCIAL crises ,ECONOMIC history - Abstract
This study revisits knowledge about the post-EU accession intra-industry trade development in the Visegrad countries (Czech Republic, Hungary, Poland, and the Slovak Republic). These countries--through trade liberalisation, European integration and EU accession--strengthened their position in the global value chains, part of which were located in Western Europe. This paper points out that during the global financial crisis, the changes in intra-industry specialisation were not coherent in the Visegrad countries. Moreover, in some cases, the specialisation even intensified. This paper also applies the Arellano-Bover/Blundell-Bond estimator to assess whether EU accession and the later global financial crisis were driving forces of the changing trade patterns of these countries. The results of the estimation proved the positive effect of European integration (before and after EU enlargement) and the negative effect of the crisis. [ABSTRACT FROM AUTHOR]
- Published
- 2017
8. GONE WITH THE EURO: A REAPPRAISAL OF THE PESETA'S ADJUSTMENT MECHANISM (1870-1998).
- Author
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SERRANO, JOSÉ MARÍA, GADEA, MARÍA DOLORES, and SABATÉ, MARCELA
- Subjects
SPANISH economy ,BALANCE of payments ,FINANCIAL crises ,GOLD standard ,PESETA ,MONEY - Abstract
Copyright of Revista de Historia Económica / Journal of Iberian & Latin American Economic History is the property of Cambridge University Press and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)
- Published
- 2017
- Full Text
- View/download PDF
9. Interest rate convergence, sovereign credit risk and the European debt crisis: a survey.
- Author
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Gruppe, Mario, Basse, Tobias, Friedrich, Meik, and Lange, Carsten
- Subjects
EUROPEAN Sovereign Debt Crisis, 2009-2018 ,FINANCIAL crises ,INTEREST rates - Abstract
Purpose This paper aims to briefly review the literature on interest rate convergence and the European debt crisis with a special focus on the current fiscal problems of some governments in Europe.Design/methodology/approach Relevant empirical papers are identified and reviewed focusing on time series analysis techniques.Findings The introduction of the euro has caused interest rate convergence among European Monetary Union (EMU) government bond yields. However, now sovereign credit risk and possibly even redenomination risk have caused divergences in European bond markets.Research limitations/implications A major limitation is that a relatively new field of the literature is surveyed. However, there are enough papers of relevance. This review paper could therefore be helpful in finding new approaches for additional empirical research examining the EMU bond market.Originality/value The results of empirical studies in a relatively new field of the literature are summarized. There meanwhile are some relevant papers. A brief survey of the results of these papers is provided. Important empirical findings with regard to interest rate convergence, sovereign credit risk and redenomination risk in the EMU are discussed and evaluated. The review is especially helpful for researchers and practitioners in the field of managerial finance and risk managers in the financial services industry. [ABSTRACT FROM AUTHOR]
- Published
- 2017
- Full Text
- View/download PDF
10. Assessing the Challenges to the Single European Banking Supervision.
- Author
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Jolevska, Evica Delova, Mrsik, Jadranka, and Jankoski, Bogoljub
- Subjects
BANKING industry ,EUROPEAN Sovereign Debt Crisis, 2009-2018 ,STRATEGIC planning ,FINANCIAL crises ,EUROZONE - Abstract
The aim of this paper is to examine the challenges of the establishment of the Single European Banking Supervision. The financial crisis has powerfully demonstrated the need for a new approach to banking regulation and supervision. In fact, the Eurozone debt crisis has shown that there are weaknesses in the design of the EMU and a new architecture is needed. One of the strategic directions is to establish a regulatory and institutional framework at the European level with the aim of protecting and ensuring financial stability through the effective and consistent application of a single and uniform rulebook. The single supervisory mechanism is designed for those countries within the Eurozone, but is also open to other EU countries. Closer coordination would ensure that responses to EU-wide economic problems are coordinated and therefore much more effective. The Single European Banking Supervision will have a statutory objective to promote the safety and soundness of the EU banking system. It is one of the measures to overcome the debt crisis in the Eurozone and a decision with far-reaching implications. In this paper we will elaborate the positive and the negative consequences from the single supervisory mechanism. Critics of this idea of the Single European Banking Supervision point out the existence of a reputational risk and a conflict of interests. Also, according to critics of the current approach to making and dealing with the crisis marked as "too little, too late" creates the perception that decision is more a sign of weakness rather than of having a clear vision and plan for the future of the European (Monetary) Union and to exit from the current crisis. Vision for the future of the EMU in the long run, undoubtedly lies in a deeper financial, fiscal, economic and political integration of the Eurozone. [ABSTRACT FROM AUTHOR]
- Published
- 2013
11. Hard-line Euroscepticism and the Eurocrisis: Evidence from a Panel Study of 108 Elections Across Europe.
- Author
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Nicoli, Francesco
- Subjects
EUROSCEPTICISM ,FINANCIAL crises ,ECONOMIC history ,DEPRESSIONS (Economics) ,ELECTIONS ,ECONOMICS - Abstract
The 2014 European elections led to a sharp rise in the electoral consensus of parties and independent parliament members perceived as eurosceptic. This paper analyzes the interconnections between distressed economies and the electoral success of hard-line eurosceptic parties. On a panel of 108 elections between 2008 and 2015, the random-effects model shows the relative effect of long- and short-term political trust, economic performance indicators, and institutional variables in determining the rise of hard-line eurosceptic parties. In contrast with previous studies, which have tended to de-emphasize the effect of economic performance in determining the success of eurosceptic forces, the results of this paper detect both a direct and a mediated effect of the economic crisis on the electoral success of hard-line eurosceptic parties. [ABSTRACT FROM AUTHOR]
- Published
- 2017
- Full Text
- View/download PDF
12. INCOME ABSOLUTE BETA-CONVERGENCE OF NUTS 3 LEVEL REGIONS IN NEW EU MEMBER STATES BEFORE AND DURING A CRISIS.
- Author
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Folfas, Paweł
- Subjects
ECONOMIC convergence ,FINANCIAL crises ,INCOME ,ECONOMIC development ,GROSS domestic product - Abstract
This paper is aimed at answering the question of whether absolute income (GDP per capita) beta-convergence exists in the case of regions in new EU Member States before the period of 2000-2008 and during the 2008-2011 crisis. The sample consists of 211 regions (NUTS 3-level) of Bulgaria, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovenia and Slovakia. The research is based on econometric models, namely on the spatial lagged model (SLM), the spatial error model (SEM) and the Durbin spatial model which contrary to the ordinary least squares the (OLS) model include possible spatial dependencies. The SLM and SEM models as well as the Durbin spatial model detect the absolute income beta-convergence on the level of about 1% during the years 2000-2008. Additionally, models do not confirm the existence of absolute income beta-convergence during the crisis of 2008-2011. SLM models (which offer the most reliable findings) find a spatial correlation (measured by the rho-parameter) at a level of 0.75 during 2000-2008 and 0.35 during 2008-2011. Thus, absolute income beta-convergence in the case of NUTS 3 regions in 10 new EU Member States existed only in the pre-crisis period and this period is characterized by much stronger spatial dependencies than the period of 2008-2011. [ABSTRACT FROM AUTHOR]
- Published
- 2016
- Full Text
- View/download PDF
13. ECONOMIC POLARIZATION ACROSS EUROPEAN UNION REGIONS IN THE YEARS 2007-2012 AT NUTS 2 LEVEL.
- Author
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Piętak, Łukasz
- Subjects
POLARIZATION (Economics) ,FINANCIAL crises ,ECONOMIC development ,STATISTICAL hypothesis testing ,INCOME inequality - Abstract
The aim of this paper is to study the economic polarization in countries of the EU at NUTS 2 level in the years 2007-2012. The studies have to decide on positive or negative verification of the hypothesis, which states that the economic crisis of 2008-2013 had an influence on rising economic polarization in EU countries. The method used in this article is an application of some measures of economic polarization and inequality of income distribution. The carried out research did not allow for the positive verification of the hypothesis. Only in a few countries did the economic crisis have an influence on a reduction of the middle class. In most cases the economic collapse did not play any role in the raising of the economic polarization index. The statistical data used in this paper was taken from the following databases: Statistical Yearbook of the Regions - Poland from 2009 to 2013 and Eurostat - Regional statistics by NUTS classification*. [ABSTRACT FROM AUTHOR]
- Published
- 2016
- Full Text
- View/download PDF
14. External and Macroeconomic Adjustment in the Larger Euro-Area Countries.
- Author
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Angelini, Elena, Ca’ Zorzi, Michele, and Forster van Aerssen, Katrin
- Subjects
EUROZONE ,BUDGET deficits ,CREDIT ,FINANCIAL crises ,SURPLUS (Economics) ,MACROECONOMICS - Abstract
A balanced current account in the euro area has disguised sizable imbalances at the country level, exposing the common currency area to severe pressures during the financial crisis. The key contribution of this paper is to evaluate the adjustment process using the New Multi Country Model (NMCM) at the country and sectoral levels. The model suggests that a recovery in wage competitiveness reduces external deficits but has only mildly expansionary effects at the cost of higher net borrowing by households. It also suggests that the impact of an aggregate demand shock in Germany is not enough to lead to a rebound in economic activity and address external imbalances in the rest of the euro area. Finally, the presence of supportive external conditions, while facilitating the implementation of vital reforms, would not necessarily unravel intra-euro-area imbalances. [ABSTRACT FROM AUTHOR]
- Published
- 2016
- Full Text
- View/download PDF
15. FOREIGN DIRECT INVESTMENT STOCK AND BUSINESS CYCLE SYNCHRONIZATION: THE CASE OF CENTRAL EUROPEAN ECONOMIES.
- Author
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Ševela, Marcel
- Subjects
FINANCIAL crises ,INTERNATIONAL trade ,BUSINESS cycles ,SYNCHRONIZATION ,INDUSTRIAL management ,BUSINESS forecasting ,TWENTY-first century ,ECONOMICS - Abstract
The business cycle synchronization was widely discussed before the last economic crisis and now the interest in this topic revives. The majority of literature about business cycle synchronization evaluates the role of mutual trade and similarities among the economies, while the investment links, mainly foreign direct investment flows and stocks are very often completely ignored or at least marginalized. The paper aims to discuss and then estimate the importance of continually increasing stock of foreign direct investment in synchronization of business cycles. It focuses to selected Central European economies after economic transition and their business cycle co-movements with their most important trade partners - France, Germany and Italy. The extent of trade flows, industrial structure similarity and selected trade environment variables are used to extend the standardly employed regression formula. [ABSTRACT FROM AUTHOR]
- Published
- 2016
- Full Text
- View/download PDF
16. Responding to 'crisis': Education policy research in Europe.
- Author
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Alexiadou, Nafsika
- Subjects
EDUCATION policy ,FINANCIAL crises ,SOCIAL justice ,EDUCATIONAL change ,EUROPEANIZATION ,EMIGRATION & immigration - Abstract
This paper discusses the significance of international and transnational developments for education policy research, with a focus on the European Union. The rise of policy projects at the EU level since 2000, has altered the relationships between the state, EU institutions and education policy, in terms of the definition of values, purposes, and mechanisms of education change, in what is often referred to as the europeanisation of education policy and governance. In a time of financial crisis and extensive population migrations to and within the European space, the paper argues for further critical research on the EU institutions and their relationship to national education systems, as well as on the social justice dimensions and implications of considering both national and EU sites of policy for addressing young and vulnerable peoples' education and social futures. [ABSTRACT FROM AUTHOR]
- Published
- 2016
- Full Text
- View/download PDF
17. CURRENT ACCOUNT (IM) BALANCES, REAL CONVERGENCE AND GROWTH EXPECTATIONS IN CENTRAL AND EASTERN EUROPE. A FRESH PERSPECTIVE.
- Author
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Miron, Dumitru, Alexe, Ileana, and Tatomir, Cristina-Flavia
- Subjects
ECONOMIC convergence ,ECONOMIC forecasting ,BALANCE of payments ,FINANCIAL crises ,ECONOMIC development - Abstract
Copyright of Transformations in Business & Economics is the property of Vilnius University and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)
- Published
- 2013
18. Transnational solidarity among political elites: what determines support for financial redistribution within the EU in times of crisis?
- Author
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Reinl, Ann-Kathrin and Giebler, Heiko
- Subjects
EUROPEAN Sovereign Debt Crisis, 2009-2018 ,FINANCIAL crises ,POLITICIANS ,SOLIDARITY ,SOCIOECONOMIC factors - Abstract
As a consequence of the European Economic Crisis, the European Union (EU) has implanted mechanisms to assist fellow member states facing economic difficulties. Despite an increasing academic interest in public preferences for such intra-EU solidarity measures, research has so far largely ignored individual characteristics that could possibly influence politicians' views. In this paper, we look at politicians' preferences for transnational solidarity and argue that these preferences depend on attitudes regarding socioeconomic issues as well as attitudes related to the EU. Moreover, we hypothesize that the relationship is moderated by responsibility attribution and the economic situation in a country. Using survey data of about 4000 politicians running for office in nine EU countries, we find that transnational solidarity is more common for socioeconomically left-wing and pro-EU politicians. Yet, attitudinal differences only cease to matter when the beneficiary state is perceived responsible for the crisis and economic problems at home are low. [ABSTRACT FROM AUTHOR]
- Published
- 2021
- Full Text
- View/download PDF
19. Conceptualising European Privatisation Processes After the Great Recession.
- Author
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Mercille, Julien and Murphy, Enda
- Subjects
PRIVATIZATION ,FINANCIAL crises ,PUBLIC-private sector cooperation ,HISTORY of capitalism ,NEOLIBERALISM -- History ,AUSTERITY ,TWENTIETH century ,HISTORY - Abstract
A wave of privatisation is unfolding in Europe in the wake of the financial crisis, but it has yet to receive serious scholarly attention. This paper examines the case of Ireland, where an austerity strategy and European Union International Monetary Fund bailout conditionality have given impetus to the transfer of public assets to the private sector. Theoretically, the paper explains the roots of the phenomenon with reference to a reformulated concept of 'accumulation by dispossession' whose usefulness lies in emphasising the politico-economic drivers of privatisation, which have been neglected in the mainstream literature. A typology is presented that argues that accumulation by dispossession manifests itself, in practice, through four main processes: (1) private repossession of assets nationalised during the financial crisis; (2) restructuring of state-owned enterprises; (3) commodification of assets and services hitherto located outside the market; and (4) privatised stimulus through public-private partnerships. The paper's framework should be useful to conceptualise ongoing privatisation processes in other European countries. [ABSTRACT FROM AUTHOR]
- Published
- 2016
- Full Text
- View/download PDF
20. The domestic politics of financial regulation: Informal ratification games and the EU capital requirement negotiations.
- Author
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James, Scott
- Subjects
FINANCIAL crises ,INTERNATIONAL relations ,INTERNATIONAL unification of law ,CAPITAL -- Accounting - Abstract
This paper contributes to our understanding of post-crisis financial regulation by reasserting the centrality of domestic politics in defining government preferences and explaining regulatory outcomes. It draws on Robert Putnam's two-level game approach and Foreign Policy Analysis to develop a model of a three-level informal ratification game. This adds value to existing approaches by capturing the contested nature of government preferences and delineating the causal mechanisms through which domestic groups shape international negotiations. The model is used to explain the UK's pivotal role in the reform of bank capital requirements in the European Union (EU). It demonstrates that governments are able to take advantage of a narrowing domestic ‘win-set’ by marginalising the influence of industry and building political momentum for regulatory reform. In particular, the paper shows how UK negotiators were able to exploit the increased domestic costs of agreement and synergistic strategies between negotiations to successfully oppose the maximum harmonisation of capital rules across the EU. [ABSTRACT FROM AUTHOR]
- Published
- 2016
- Full Text
- View/download PDF
21. The Monetisation of Assets through Concession and Applicability in the Sector of Energy in Bosnia and Herzegovina.
- Author
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Bajrambašić, Izet
- Subjects
BUSINESS conditions ,MONETIZATION ,DEBT monetization ,MACROECONOMICS -- Government policy ,FINANCIAL crises ,ECONOMICS - Abstract
Financial effects of monetisation through concession in the sector of energy in Bosnia and Herzegovina (B&H) may well increase the level of domestic investments, production, exports, employment and general economic growth, without additional higher borrowings and loss of ownership in these strategically important industries. These new financial opportunities are necessary for faster economic development of the country, especially in the transitional period, as this development process is a great challenge in modern world economy. It requires significant commitment and coordinated efforts of the public and private sector. The case study of Terminal Kakanj Power Plant (KPP) presented in this paper show that it is possible to implement monetization of assets through concession in the energy sector in B&H. The empirical results provide evidence of positive correlations between monetisation through concession process and economic development in B&H or other transition and development countries. [ABSTRACT FROM AUTHOR]
- Published
- 2016
- Full Text
- View/download PDF
22. The Role of Monetary Policy as the Foundation of Economic Development in Bosnia and Herzegovina.
- Author
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Živković, Matej and Hodžić, Lejla
- Subjects
MACROECONOMICS -- Government policy ,FINANCIAL crises ,BUSINESS conditions ,MONETARY policy ,CURRENCY boards ,ECONOMICS - Abstract
Macroeconomic stabilization of every country depends largely upon the conduct of appropriate economic policy, which comprises both fiscal and monetary policy; therefore, it is of great importance to choose the most adequate and productive ones. Many countries across the board have employed monetary policy in their attempt to ease the consequences of economic crises in the aftermath of global financial meltdown, and in the search for sustainable economic development. This paper was confined to the monetary policy in Bosnia and Herzegovina specifically, and its aim was to address the current Currency Board Regime along with the available monetary policy instruments and to determine whether an opportunity for the improvement of economic growth and consequently economic development lies within it. The importance of Central Bank was stressed out, as it represents the anchor of the monetary system. The paper comprises the analysis of the implemented CBR, its brief history, monetary policy instruments available and its consequences on the economy of B&H and based on that, the recommendations for exit-strategy which, ceteris paribus, represent a key to achieving higher levels of development. The economic indicators suggested that macroeconomic performance under CBA is not advantageous for B&H; therefore, it is thought that abandoning the arrangement either by joining the EMU or by making the Central Bank more independent is necessary. [ABSTRACT FROM AUTHOR]
- Published
- 2016
- Full Text
- View/download PDF
23. Macroeconomic effects of financial stress and the role of monetary policy: a VAR analysis for the euro area.
- Author
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Kremer, Manfred
- Subjects
ECONOMIC conditions in the Eurozone ,MONETARY policy ,FINANCIAL stress ,FINANCIAL crises ,MACROECONOMICS ,TWENTY-first century - Abstract
This paper analyses an otherwise standard macro-financial VAR model for the euro area that includes - apart from conventional measures of output, inflation and monetary policy - a composite indicator of systemic financial stress, namely the CISS index, and total assets of the ECB balance sheet capturing the stance of unconventional monetary policy. I find that the CISS contributes significantly to the dynamics of the macroeconomy and exerts a strong influence on monetary policy when looking at both policy rates and the ECB balance sheet. The significance of the CISS appears robust to the inclusion of a broad set of real and financial control variables. Based on tests of direct versus indirect (Granger-)causality patterns proposed in Hsiao (), I also find that unlike unconventional policy as measured by ECB balance sheet growth, the policy rate does not seem to react directly to variations in financial stress but rather indirectly through the impact of financial stress on macroeconomic conditions. These different patterns of reaction are broadly consistent with the ECB's 'separation principle'. The estimated effects of the ECB's standard and non-standard policy measures on inflation and economic growth are moderate, although an easier stance in both policy tools helps calm down financial stress. [ABSTRACT FROM AUTHOR]
- Published
- 2016
- Full Text
- View/download PDF
24. ARE FISCAL RULES AN EFFECTIVE INSTRUMENT IN CONSOLIDATING PUBLIC FINANCES? CONCLUSIONS FROM THE ECONOMIC CRISIS.
- Author
-
DZIAŁO, JOANNA
- Subjects
FISCAL policy ,PUBLIC finance ,FINANCIAL crises ,ECONOMIC stabilization ,MACROECONOMICS ,ECONOMIC equilibrium - Abstract
The paper aims to assess the role of fiscal rules in the process of consolidating public finances and maintaining macroeconomic stability in the EU Member States in the period of the economic crisis. The paper puts forward the thesis that fiscal rules were not an effective instrument for ensuring fiscal discipline in times of crisis. It will present the most important issues of the process of evolution of the rules during the crisis. A review and an analysis of legislation and literature on reforms implemented in the area of fiscal rules, confirms this thesis. The paper points to the need to create such fiscal rules that could contribute not only to fiscal stability but also to macroeconomic stability of the economy and concludes with recommendations for the creation of effective fiscal rules and their desirable features. The rules should be based on the structural balance or the over the cycle balance (but, in order for such rules to be effective, the structural deficit should be relatively low). Effective enforcement of the rules is necessary as well as a strong legal basis for the rules. However, one may remember that the efficiency of the rules is also determined by causes and the scope of fiscal problems in individual countries. The rules alone are not sufficient to overcome the strong systemic and structural burdens placed on economies. In such a situation, a better solution is to develop a long-term strategy for reducing deficit and debt levels, incorporating fiscal rules as one of its elements. [ABSTRACT FROM AUTHOR]
- Published
- 2016
- Full Text
- View/download PDF
25. Accounting for austerity: the Troika in the Eurozone.
- Author
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Cohen, Sandra, Guillamón, María-Dolores, Lapsley, Irvine, and Robbins, Geraldine
- Subjects
AUSTERITY ,EUROZONE ,FINANCIAL crises - Abstract
Purpose – The purpose of this paper is to examine the impact of the Eurozone financial crisis by discussing the experiences of Greece, Ireland and Spain. It particularly examines the influence and actions of the Troika in the management of the sovereign debt crisis in the Eurozone. Design/methodology/approach – The primary source of information for this study has been the documents of the Greek, Irish and Spanish Governments (often only available in their native language) and the reports of EU bodies and the IMF, supplemented by media coverage, as deemed appropriate. This has been analysed on a comparative basis to contrast the experiences of these three countries. Findings – This study reveals how the Eurozone crisis has impacted on financially weak countries in this currency union. The fiscal conservatism of the Troika (the IMF, the EU and the European Central Bank) has had profound consequences for these economies, which have experienced dramatic cuts in public services. Research limitations/implications – This study has focused on the experiences of three countries in the Eurozone. There is a case for extending this analysis to other Eurozone countries. Practical implications – There are two approaches to recession – governments can stimulate demand by infrastructure spending or take the financial conservatism route of reducing public expenditure and public sector borrowing. However, the severity of the crisis undermines the first approach and there are uncertain outcomes with the second approach. This paper shows the effects of adopting financial conservatism as a strategy in this crisis. Social implications – The austerity programmes pursued by the governments in this study have led to unemployment, migration of skilled workers, collapse in property markets, failing banks and social unrest. Originality/value – This study takes an accounting perspective on the Eurozone crisis. This offers a distinctive interpretation of events. This study examines the merits of widely used theories in studies of public sector change namely legitimation and resource dependency theory intertwined with power and offers insights into how meaningful they are in explaining the dramatic influence of austerity programmes in the Eurozone. [ABSTRACT FROM AUTHOR]
- Published
- 2015
- Full Text
- View/download PDF
26. PUBLIC DEBT AND ECONOMIC GROWTH - A POLEMIC DISCUSSION.
- Author
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Muchová, Eva and Kálovec, Marek
- Subjects
FINANCIAL crises ,ECONOMIC indicators ,PUBLIC debts ,EMERGING markets ,ECONOMIC history - Abstract
The global financial crisis has influenced economic performance of the world economy and economic theory as well. The crisis has underlined the fiscal position as a fundamentally fragile element of the Euro Area members' economies and it has also proposed the question whether the growth has not been systematically fed and accelerated by increasing public indebtedness. The paper focuses on the quantification of relation between economic performance and public debt. There is an analysis of 27 EU countries and other 13 OECD economies data (1971-2010) divided into two groups - developed economies and less developed emerging markets and categorized into four blocks. Main findings of the paper are following: increasing public indebtedness as a percentage of GDP has led to lower economic performance in analysing group of 40 countries. The difference between the highest and lowest category of public debt level is almost 2 percent. It is supposed that unsufficient GDP growth might even deepen the ongoing debt crisis. [ABSTRACT FROM AUTHOR]
- Published
- 2014
27. All in: Market expectations of eurozone integrity in the sovereign debt crisis.
- Author
-
Chang, Michele and Leblond, Patrick
- Subjects
GOVERNMENT securities ,PUBLIC debts ,EUROZONE ,FINANCIAL crises ,MONETARY unions - Abstract
The behaviour of sovereign bond investors stands at the heart of the euro area debt crisis. By pushing upward the yields on the government debts of member states standing in the eurozone's periphery, investors caused, in a self-fulfilling way, the crisis that ultimately threatened the eurozone's integrity and the euro's survival. So how do we explain the behaviour of market investors before, during and after the eurozone's sovereign debt crisis? Why did investors not discriminate in their pricing of eurozone sovereign bonds before the crisis? Why did they abruptly change their minds in 2010? And why have they gradually felt reassured enough from mid-2011, depending on the country, to ask for significantly lower yields on sovereign bonds? To answer these questions, the paper argues that investors’ confidence rests to a large extent on the expectation of the eurozone's solidarity, which is why large-scale multilateral solutions coming from the euro area were more successful in resolving the crisis than unilateral ones coming primarily from the debtor countries. As a result, this paper improves our understanding of the international political economy of financial (currency, bank and debt) crises by looking at the particular case of a monetary union with a single currency. [ABSTRACT FROM PUBLISHER]
- Published
- 2015
- Full Text
- View/download PDF
28. THE ECONOMIC EFFECTS OF PROTESTANT AND CATHOLIC MORALITIES IN SOVEREIGN DEBT CRISIS. A CROSS-COUNTRY ANALYSIS.
- Author
-
SANDA, DRAGOŞ-CONSTANTIN
- Subjects
PROTESTANTS ,PUBLIC debts ,FINANCIAL crises - Abstract
The financial crisis that hit Europe in 2008 created the premises for a financial diagnosis, resulting in a direct revaluation of countries' loan capacity. This late diagnosis revealed enormous sovereign debt in most of the European countries. The economic measures, subsequently applied, were ones of palliative consequences treatment such as reducing the national deficit and loan capacity. The European Economic Area's sovereign debt matter generated a complex literature, generally based on economic reasoning, regardless of cultural features, of explaining the underlying factors for the appearance of such financial shortfalls in Italy, Spain, Portugal and France. On the other hand, the Scandinavian countries have not borrowed as much. This paper aims to supply the previous efforts made, by analysing cultural differences between catholic and protestant countries. The analysis begins with the presentation of Max Weber's classical vision about the impact of Protestant Reformation on traditional belief systems, by changing individual's attitudes towards saving, capital accumulation and honesty in lending operations. Further on, the article proposes a diagnostic cross-country analysis of major Catholic and Protestant economies from European Economic Area, from the sovereign debt crisis perspective. [ABSTRACT FROM AUTHOR]
- Published
- 2015
29. Revisiting the Latvian and Greek Financial Crises: The Benefits of Front-Loading Fiscal Adjustment.
- Author
-
Åslund, Anders
- Subjects
ECONOMIC conditions in Greece ,GREEK economic policy ,FINANCIAL crises ,EUROPEAN Sovereign Debt Crisis, 2009-2018 ,LATVIAN economy, 1991- ,GLOBAL Financial Crisis, 2008-2009 ,AUSTERITY ,TWENTY-first century - Abstract
This paper discusses why Greece has done so poorly in comparison to all other European Union countries since the onslaught of the global financial crisis in 2008. To show what was wrong with its fiscal adjustment, this paper compares Greece with the other European Union country that was hit be the most severe fiscal crisis, namely Latvia. The conclusion is that front-loaded fiscal adjustment works much better. Greek economic policy has been a popular topic among opinion writers, notably Nobel Prize winner and New York Times columnist Paul Krugman, who claimed that Greece suffered from austerity. Because of his prominence in the international public debate, the paper scrutinizes his arguments on the Greek crisis. The paper also examines what policy the International Monetary Fund has pursued with regard to Greece, and how its views have been influenced by the debate and Greek economic developments. Finally, the paper assesses what lessons that can be drawn from the contrasting experiences of Latvia and Greece. The conclusion is that a fiscal adjustment should be sufficient to resolve the crisis to restore confidence and that it should be as front-loaded as is practically and politically possible. [ABSTRACT FROM AUTHOR]
- Published
- 2015
30. FINANCIAL CRISIS AND BUSINESS CYCLE.
- Author
-
Dziurova, Valeria
- Subjects
EUROPEAN Sovereign Debt Crisis, 2009-2018 ,FINANCIAL crises ,UNEMPLOYMENT ,PUBLIC debts ,DEBT - Abstract
Since 2007 Eurozone countries have been in economic crisis. Some countries have had negative growth and massive unemployment, especially youth unemployment, all countries have experienced low growth rates, and some have had financial crises with unsustainable private and public debts and sky-high borrowing rates. All of this has caused huge political and social upheavals. The paper describes theory of real business cycle also describes arise and the course of global financial and economic crisis. The Global Financial Crisis was a clear demonstration of the role of bank lending in the propagation of financial crises and business cycles. The paper describes the topic of the role of the banking system in generating financial crises and business cycles in the context of the currently financial crisis of 2007. [ABSTRACT FROM AUTHOR]
- Published
- 2017
- Full Text
- View/download PDF
31. CONVERGENCE OF THE GOVERNMENT BOND YIELDS IN VISEGRAD COUNTRIES.
- Author
-
Hvozdenska, Jana
- Subjects
BONDS (Finance) ,BOND market ,SECURITIES ,FINANCIAL crises - Abstract
The aim of this paper is to analyse the influence of the European Union accession and financial crisis to convergence and integration of the bond yields and bond markets. The results show the deepening of bond market convergence after the European Union accession and the integration has continued until the end of the observed period. The chosen indicators are monthly mid-term bond yields (10-year bond yields). The period of 1/2000 to 12/2016 was chosen in order to show the impacts of the changes. The time period was divided into periods 1/2000 - 4/2004 (before the European Union accession), 5/2004 - 7/2007 (after the accession and before financial crisis), 8/2007 - 3/2009 (period of the deepest financial crisis), 4/2009 - 12/2016 (period after the financial crisis). Used methods are 1) spread between the 10-year bond yields of countries of Visegrad group (Czech Republic, Slovakia, Poland and Hungary) and German 10-year bond yield, 2) analysis of alignment, 3) β-convergence. These findings can be beneficial for the financial market observers. [ABSTRACT FROM AUTHOR]
- Published
- 2017
- Full Text
- View/download PDF
32. The Impact of the Economic Downturn on Innovative Performance in Poland.
- Author
-
Matras-Bolibok, Anna
- Subjects
TECHNOLOGICAL innovations ,ECONOMIC competition ,POLISH economy, 1990- ,FINANCIAL crises - Abstract
Contemporarily, innovations play a crucial role in strengthening competitive advantage of emerging economies. Effective innovation activity provides opportunities for diminishing the innovative gap between these economies and innovation leaders. In case of Poland a relatively less severe economic downturn in comparison to other European Union countries may prove a significant accelerator of this process. On the other hand the increase of risk aversion caused by the global economic crisis of recent years leads to constraining innovative projects, especially by private investors, and this could in turn affect adversely the long-run competitive position of Polish enterprises. The paper aims at investigating the impact of the global economic downturn on the innovative performance in Poland. The analysis was conducted for the period 2006-2011, on the base of statistical data provided by Central Statistical Office of Poland and Eurostat. The impact of economic downturn on general macroeconomic characteristics and on the demand- and supply-side determinants of innovativeness in Polish economy were examined. In order to achieve the aim of the paper the analysis of the share of innovative enterprises, level of innovation expenditures and the effects of innovation activity measured by the share of revenues from sales of new or significantly improved products was conducted. Additionally, the impact of the size of enterprises on their resistance to unfavourable economic conditions during the latest global crisis was examined. The results of the analysis indicate that the uncertainty caused by the global economic crisis affected adversely the overall innovative performance of Polish enterprises. The analysis revealed simultaneous increase of R&D expenditures intensity and patent activity. As R&D expenditures in Poland are financed mainly by public funds these results imply that the innovative activity during the economic downturn may be focused increasingly on basic instead of applied research. This indicates the potential weakening of connection between the sectors of science and business. Moreover, the analysis revealed, that the larger enterprises proved relatively more resistant to economic turbulences. Furthermore, economic crisis turned out to be a factor that contributed to increase of the level of divergence between large and small or medium enterprises. The results imply therefore the necessity of creating favourable conditions for development of networks of collaboration on innovation activity. In this light the innovation policy aiming at strengthening the collaboration between science and business sectors as well as between enterprises, during the current economic downturn becomes of crucial importance. [ABSTRACT FROM AUTHOR]
- Published
- 2013
33. Beyond Balassa and Samuelson: real convergence, capital flows, and competitiveness in Greece.
- Author
-
Belke, Ansgar, Haskamp, Ulrich, and Schnabl, Gunther
- Subjects
CAPITAL movements ,BALASSA-Samuelson effect ,FINANCIAL crises - Abstract
To better understand the convergence process prior and since the European financial and debt crisis, we scrutinize the role of capital flows for competitiveness in Greece and a set of six other euro area member countries (Portugal, Latvia, Estonia, Lithuania, Slovenia and the Slovak Republic). For this purpose the paper extends the seminal Balassa-Samuelson model by international capital markets with a particular focus on their impact on national wage policies. Capital flows are assumed to be able to invert the traditional direction of transmission of real wage increases from the tradable sector to the non-tradable sector and to make real wages increase beyond productivity increases. The augmented Balassa-Samuelson model is extended to trace cyclical deviations of real exchange rates from the productivity-driven equilibrium path. Panel estimations for the period from 1995 to 2013 reveal correlations in line with the Balassa-Samuelson effect, if Greece is excluded from the panel. For Greece, this in turn implies indication in favour of a credit-driven real wage increases beyond productivity increases what we call a “pseudo” Balassa-Samuelson effect. [ABSTRACT FROM AUTHOR]
- Published
- 2018
- Full Text
- View/download PDF
34. Some Reflections on the Governance Framework of the Single Resolution Board.
- Author
-
Božina Beroš, Marta
- Subjects
MANAGEMENT of government agencies ,AGENCY theory ,CORPORATE governance ,FINANCIAL crises ,BANKING policy - Abstract
Abstract: First embodied by the European Supervisory Authorities in 2010, agency governance in the financial sector has gained momentum with the creation of the Single Resolution Board (SRB) – an EU agency with considerable competencies in banking prudential policy. Within a short period, backed by the ‘ESMA‐Short Selling case’ judgment, agencies have progressed from supporting the European Commission with their quasi‐rule making, to a more prominent role in the decision‐making process, potentially influencing policy‐makers' agenda. By engaging in a qualitative analysis of legal documents, official texts and relevant scholarship, this research note examines the formal framework and practical aspects of SRB's governance, in order to substantiate whether its establishment presents a ‘qualitative increase’ in financial sector agencification. At the same time, the research note highlights problematic issues arising because of the limitations set by the Meroni doctrine arguing that the Board's wide powers ‘on paper’ may prove challenging to implement in practice. [ABSTRACT FROM AUTHOR]
- Published
- 2018
- Full Text
- View/download PDF
35. The Impact of Capital on Lending in Economic Downturns and Investor Protection - the Case of Large EU Banks.
- Author
-
Olszak, Małgorzata, Pipień, Mateusz, Roszkowska, Sylwia, and Kowalska, Iwona
- Subjects
INVESTOR protection ,FINANCIAL ratios ,FINANCIAL crises ,BANKING industry ,BANK loans - Abstract
This paper attempts to find out whether better quality of investor protection matters for the effect of capital ratio on loan growth of large EU banks in 1996-2011. We focus on several measures of the quality of investor protection with a proven track record in the banking literature, i.e.: anti-self-dealing index, ex-ante-control and ex-post-control of anti-self-dealing indices, and creditor protection rights index. Our results show that better investor protection decreases the procyclical impact of capital on lending. This effect is statistically significant for the ex-post-control index. This is consistent with the view that better shareholders rights reduces bank risk-taking, in particular during economic booms, which results in weakened sensitivity of bank lending to capital ratios in economic downturns. This effect holds for both unconsolidated and consolidated data and is robust to sensitivity checks. [ABSTRACT FROM AUTHOR]
- Published
- 2018
36. Territorial capital and the resilience of European regions.
- Author
-
Fratesi, Ugo and Perucca, Giovanni
- Subjects
FINANCIAL crises ,ECONOMIC impact analysis ,MACROECONOMICS ,CAPITAL ,MATERIALITY (Accounting) - Abstract
Starting in 2007–2008, an economic crisis with no comparable precedent after WWII has affected most of the World, and Europe in particular. Yet, despite the pervasiveness of the crisis, its impact was highly differentiated across countries. The macroeconomic country-level effects are very important, but also within countries the impact on the various regions has been far from uniform, with some regions, often the most urban, able to resist the crisis better than others. Among the many factors which can have influenced the differential impact of the crisis in Europe, this paper looks at the regional endowment of structural territorial assets, those which have been labelled as “territorial capital”. Territorial capital comprehends all those assets, being material or immaterial, public or private, which represent the development potential of places. Territorial capital enhances regional growth in ordinary times, and, being structural, can be expected to also act as a factor of resilience in times of crisis. To investigate this hypothesis, a database of territorial capital indicators for all regions of the European Union at NUTS3 level is exploited, and a classification of regions based on the endowment of territorial capital is built. It appears that regions belonging to different groups, i.e. being differently endowed with territorial capital, have had different degrees of resilience, with some being able to maintain their income levels better than their country and others losing ground. The structure of regions is hence an important determinant of how they can afford periods of distress, and in particular, more resilient have been those regions endowed with less mobile territorial capital assets and with those territorial capital assets of mixed levels of materiality and rivalry. [ABSTRACT FROM AUTHOR]
- Published
- 2018
- Full Text
- View/download PDF
37. The Influence of Social Models on Retirement Savings: Evidence for European Countries.
- Author
-
Rey-Ares, Lucía, Fernández-López, Sara, and Vivel-Búa, Milagros
- Subjects
INDIVIDUAL retirement accounts ,POPULATION aging ,FINANCIAL crises ,SOCIAL security ,ECONOMICS - Abstract
Population ageing, together with the negative effects of the recent economic and financial crisis that some European countries are still facing, have threatened the sustainability of public pension systems. In this context, voluntary private pensions have emerged as the most feasible alternative to supplement the minimum provided by Social Security Systems; however, this financial product does not enjoy its expected popularity. A potential explanation of this reality might be due to the fact that European countries are far from being homogeneous, nor their pensions systems. Therefore, any policy geared toward improving financial retirement planning should take into account these potential differences. As a first approach to their analysis, this paper proposes the existence of four different ‘social models’ in Europe -namely,
Continental ,Mediterranean ,Nordic andTransitional- . Overall, empirical evidence confirmed the significant influence of country’ ‘social model’ on the decision to invest in retirement accounts on a sample of 31,468 individuals in 2013. It was also proved that this decision is positively related to age, household income and wealth, higher levels of formal education, job situation, good health status, and long-term planning horizons; and negatively related to age squared, household size or financial risk aversion. In short, future policies and reforms regarding private pensions should not only take into account the existence of individual differences among Europeans, but also the existence of differences depending on institutional and cultural country factors. [ABSTRACT FROM AUTHOR]- Published
- 2018
- Full Text
- View/download PDF
38. Macro news and bond yield spreads in the euro area.
- Author
-
Caporale, Guglielmo Maria, Spagnolo, Fabio, and Spagnolo, Nicola
- Subjects
NEWSPAPERS ,RATE of return on government securities ,GOVERNMENT securities ,ECONOMETRICS ,MARKET volatility ,FINANCIAL crises - Abstract
This paper analyses the effects of newspaper coverage of macro news on the spread between the yield on the 10-year German Bund and on sovereign bonds in eight countries belonging to the euro area (Belgium, France, Greece, Ireland, Italy, the Netherlands, Portugal and Spain) using daily data for the period 1999–2014. The econometric analysis is based on the estimation of a VAR-GARCH model. The results can be summarized as follows. Negative news have significant positive effects on yield spreads in all GIIPS (Greece, Ireland, Italy, Portugal and Spain) countries but Italy before September 2008; markets respond more to negative news, and their reaction has increased during the recent financial crisis. News volatility has a significant impact on yield spread volatility, the effects being more pronounced in the case of negative news and bigger in the most recent crisis period, especially in the GIIPS countries. Further, the conditional correlations between yield spreads and negative news increase in absolute value during the financial crisis (especially in the GIIPS countries), indicating a higher sensitivity of the former to the latter. [ABSTRACT FROM AUTHOR]
- Published
- 2018
- Full Text
- View/download PDF
39. Measuring the end of the European financial crisis.
- Author
-
Lin, Ya‐Chi and Yeh, Kuo‐Chun
- Subjects
GLOBAL Financial Crisis, 2008-2009 ,FINANCIAL crises ,FOREIGN exchange rates ,EUROPEAN integration ,EURO ,ECONOMICS - Abstract
In 2013 it was declared that 'the eurozone crisis is over'. However, in fact, the series of financial crises since 2008 may have interrupted the process of EMU enlargement, which in turn triggered a continuing crisis of confidence in the euro. In this paper we extend the sigma-convergence test to provide a more precise understanding of real interest rate parity ( RIP) convergence. On the basis of this, we predict the timing for eliminating the cost of economic asymmetric shocks. Our estimation indicates the RIP among EMU members and accessions were still valid after the disruptions of the 2008 financial crisis. However, the situation has been even worse since the 2010 European sovereign debt crisis, and ceteris paribus, symmetry cannot be achieved without further policy actions. This implies that the EMU authority must do its best to strengthen symmetry and thereby solidify the EMU, at which point it will be better able to re-start the process of enlargement. [ABSTRACT FROM AUTHOR]
- Published
- 2017
- Full Text
- View/download PDF
40. Political Economy of Banking and Debt Crisis in the EU: Rising Financialization and its Ramifications.
- Author
-
Kotarski, Kristijan and Brkic, Luka
- Subjects
BANKING industry ,FINANCIAL crises ,FINANCIALIZATION ,MONETARY theory ,LEGITIMACY of governments ,ECONOMICS & politics - Abstract
This paper is structured into four different parts. In the first part the authors analyze the origins of banking and debt crisis in the EU. The state and the evolution of the EU banking sector before the crisis and in its immediate aftermath is analyzed in detail in order to dispel the myth of the existence of an exclusively debt-induced crisis. This part also introduces the notion of financialization into the analysis. The second part analyzes the crisis-related dynamics by using endogenous monetary theory and makes particular use of balance-sheet recession as a concept. The third part introduces political consequences of the banking and debt crisis in the EU by focusing on the political crisis of legitimacy and its impact upon the EU integration process. In order to deal with this topic the authors borrow several concepts from critical international political economy such as transnational elite, knowledge production, and hegemony. We posit a close link between actions of the European transnational elite, crisis origins, and their ramifications. The fourth part focuses on the two most-discussed policy solutions in tackling the crisis: the banking and the fiscal union as well as their feasibility. Additionally, it lays out some fundamental trillemas for creating a viable way out of the crisis which are unfortunately often neglected in public debate. The main argument refers to the growing impact of financialization in the EU and its detrimental effect on the potential for integrated, stable, and prosperous EU economies. The authors explain the changing social, political, and economic landscape and evaluate the main challenges and obstacles to economic and political governance in the EU. The paper is concluded with some heterodox policy recommendations for overcoming them.JEL classification: B52, E51, E52, F34, F50, G01, G20, P48 [ABSTRACT FROM AUTHOR]
- Published
- 2017
- Full Text
- View/download PDF
41. On the Risk of Leaving the Euro.
- Author
-
Macera, Manuel, Marcet, Albert, and Nicolini, Juan Pablo
- Subjects
FINANCIAL crises ,SOVEREIGNTY ,SEIGNIORAGE (Finance) ,BUDGET deficits ,GOVERNMENT policy on financial crises - Abstract
Following the sovereign debt crisis of 2012, some southern European countries have debated proposals to leave the Euro. We evaluate this policy change in a standard monetary model with seigniorage financing of the deficit. The main novel feature is that we depart from rational expectations while maintaining full rationality of agents in a sense made very precise. Our first contribution is to show that small departures from rational expectations imply that in ation upon exit can be orders of magnitude higher than under rational expectations. Our second contribution is to provide a framework for policy analysis in models without rational expectations. [ABSTRACT FROM AUTHOR]
- Published
- 2019
42. A prolonged financial crisis: adjustments and prospects in Eurozone's southern markets.
- Author
-
Tsolacos, Sotiris
- Subjects
FINANCIAL crises ,REAL estate business ,ECONOMIC conditions in the Eurozone ,INVESTORS ,INVESTOR confidence ,MACROECONOMICS - Abstract
Purpose – The economic slump in the southern member states of the Eurozone has brought real estate market activity to a standstill and has raised questions about the future of these markets. Will they rebound and will they command a higher risk premium? This paper aims to assess the outlook for these markets as the crisis continues and analyses the conditions that are a prerequisite to restore investment activity and a healthy occupier market. Design/methodology/approach – Within a portfolio allocation framework, the paper examines the conditions for the revival of investor interest in these markets and the uncertainties that should be resolved. Through the analysis of selected data, the paper assesses the emerging state of these markets. Findings – The economic slump in peripheral Eurozone economies gives way to a period of slow growth and ongoing structural reforms. The latter are necessary to restore confidence in the respective economies and investment markets. Sentiment indicators contain the first signs of a rebound in business confidence. With confidence returning and mitigated macroeconomic risks investors will seek value in the markets of the southern region on a selective basis. Price corrections and yield differentials with core markets could prove attractive. It is, however, argued that a risk premium will remain to reflect progress with structural reforms that will make the economies more competitive and less prone to a similar crisis in the future. It is only when such reforms will firmly be put in place that pricing in the southern Eurozone markets will reflect cyclical risks and diversification contributions. Practical implications – The article provides a structured approach to assess the outlook for peripheral markets. It identifies the key risks affecting investor confidence. The analysis proceeds to stress conditions that should be satisfied for a rebound in the investment market. Signals from selected data series are extracted to assess sentiment and adjustment in the market and assist in the assessment of real estate market prospects in these economies. Originality/value – The paper examines conditions for investing in the hard hit markets of the Eurozone. It illustrates the path for the recovery in these markets and the conditions for the rebound in investment volumes. It contributes to the analysis of the growth potential and risk of these markets for investment purposes. [ABSTRACT FROM AUTHOR]
- Published
- 2014
- Full Text
- View/download PDF
43. The Deepening Crisis in the European Super-periphery.
- Author
-
Bartlett, Will and Prica, Ivana
- Subjects
EUROPEAN Sovereign Debt Crisis, 2009-2018 ,PUBLIC debts ,FINANCIAL crises ,FOREIGN investments ,FINANCIAL bailouts ,GLOBAL Financial Crisis, 2008-2009 ,ECONOMIC history - Abstract
In this paper we argue that the Western Balkans form part of a ‘super-periphery’ of Europe, being highly vulnerable to the effects of the Eurozone crisis, yet lacking support from the European Union (EU) bail out funds and policy instruments that are available to ease the impact of the crisis on the ‘peripheral’ EU member states. In the Western Balkans the crisis has been transmitted through several channels including exports, remittances, foreign investment and bank credit flows. The paper investigates the impact of the Eurozone crisis on the region and questions whether the EU accession process continues to offer hope of economic prosperity in the future or whether the countries of the super-periphery should rely more on their own resources, new alliances and regional cooperation to support future economic growth. [ABSTRACT FROM PUBLISHER]
- Published
- 2013
- Full Text
- View/download PDF
44. The motives and rationalizations of the European right-wing discourse on immigrants. Shifts in multiculturalism?
- Author
-
Cihodariu, Miriam and Dumitrescu, Lucian-Ştefan
- Subjects
MOTIVATION (Psychology) ,EMIGRATION & immigration ,MULTICULTURALISM ,FINANCIAL crises - Abstract
Mainstream parties in Europe (especially the Western part of Europe that is currently dealing with an increased migration flux in comparison with the rest of the European countries) seem to have intensified their concern with immigration in the last two decades (even more so since the 2008 financial crisis). Right-wing parties are the most radical in their anti-immigration discourse, and public displays of such argumentations reflect not only shifts in the public's political sympathies post-crisis, but may also reflect shifts in the (still) dominant paradigm of multiculturalism. This paper analyses some examples from various right-wing discourses (Switzerland, Germany, United Kingdom, to name a few) and from political discourses on the nature and future of multiculturalism in order to understand the way political actors rationalize such positions. This analysis can help further understand not only how the rhetorics of political justifications and rationalizations work, but also to sketch some plausible future dynamics of migration in European context (the main target of the paper being the discourses towards Eastern-European immigrants) and the possible shifts in multiculturalism as well. [ABSTRACT FROM AUTHOR]
- Published
- 2013
45. The EU's new regulatory framework: The auditor's perspective.
- Author
-
Dennett, Simon
- Subjects
FINANCIAL management ,FINANCIAL crises ,BANKING industry - Abstract
The landscape of the European Union's (EU) financial management has changed dramatically since the start of the financial crisis. Therefore, the European Court of Auditors (ECA) has had to adapt its approach and strategy to ensure that it could fully address the new European finance architecture in line with its mandate. This paper examines some of the most, important changes implemented by the EU through the lens of the ECA 's special reports and finds that overall the European Commission has acted quickly in difficult circumstances, but the scale of the task means there is still much work to be done before this challenging episode can be consigned to history. [ABSTRACT FROM AUTHOR]
- Published
- 2017
46. Top-down restructuring of markets and institutions: the Nordic banking crises.
- Author
-
Mayes, David
- Subjects
BANKING industry ,INTERNATIONAL banking industry ,FINANCIAL crises ,CORPORATE finance ,STOCKHOLDERS - Abstract
This paper explores the lessons that can be learned for the future resolvability and successful reorganization of problem banks from the experience of successful resolutions in Denmark, Finland, Iceland, Norway and Sweden over the last 25 years. The Nordic countries used all of the new tools that will be available following the passing of the Bank Recovery and Resolution Directive. There were difficulties with them, which will provide valuable experience, but it is likely that they will work well in the future. Experience with bailing in is limited but suggested problems of valuation in writing down and larger writedowns than might be anticipated. While the current drive to ensure that only private sector money is used, the predilection for the continuation operation of most banks other than smallest and the extent to which public funds were committed, suggest that the taxpayer is likely to be involved in strategic cases in the future. In particular, the guarantee funds available were insufficient and had to be topped up by the state. Hence, the new resolution funds in the EU may similarly need augmenting in a crisis. However, almost all the main banks involved in the Nordic resolutions were primarily national and retail. Where they involved cross-border operations, as in Iceland, the results were very messy. While many were national SIFIs they only became regional SIFIs as a result of the reorganization after the resolutions. Whether the resolutions could be performed so smoothly for these new larger international banks is not readily verifiable from the Nordic experience. [ABSTRACT FROM AUTHOR]
- Published
- 2017
- Full Text
- View/download PDF
47. Commercializing Citizenship in Crisis EU: The Case of Immigrant Investor Programmes.
- Author
-
Parker, Owen
- Subjects
EUROPEAN Union citizenship ,FOREIGN investment visas ,FINANCIAL crises ,COMMERCIALIZATION ,INVESTORS ,ECONOMIC history - Abstract
Immigrant investor programmes (IIPs) - aimed at attracting investment in return for residency or citizenship for wealthy foreigners - have proliferated in EU Member States in recent years. Such schemes constitute part of a much broader commercialization of citizenship, which has intensified during the crisis. They have been particularly controversial in the EU because they rely for their attractiveness in part on the reality of EU citizenship and the rights of mobility and residence that it entails. The European Commission, among others, has presented them as threat to national citizenship and yet the EU at once champions a 'post-national' citizenship and is arguably culpable in the very commercialization of citizenship of which investor schemes are a stark manifestation. This paper unpacks the tensions in the theory and politics of investor migration in the recent EU context, arguing that they reveal what is termed a 'quadrilemma' at the heart of a multi-level citizenship. [ABSTRACT FROM AUTHOR]
- Published
- 2017
- Full Text
- View/download PDF
48. Fiscal and Other Rules in EU Economic Governance: Helpful, Largely Irrelevant or Unenforceable?
- Author
-
Begg, Iain
- Subjects
FISCAL policy ,FINANCIAL crises ,PUBLIC finance - Abstract
EU Member States, particularly in the Euro Area, have been pushed to adopt more extensive and intrusive fiscal rules, but what is the evidence that the rules are succeeding? The EU level Stability and Growth Pact (SGP) has been – and remains – the most visible rule-book, but it has been complemented by a profusion of national rules and by new provisions on other sources of macroeconomic imbalance. Much of the analysis of rules has concentrated on their technical merits, but tends to neglect the political economy of compliance. This paper examines the latter, looking at compliance with fiscal rules at EU and Member State levels and at the rules-based mechanisms for curbing other macroeconomic imbalances. It concludes that politically driven implementation and enforcement shortcomings have been given too little attention, putting at risk the integrity and effectiveness of the rules. [ABSTRACT FROM AUTHOR]
- Published
- 2017
- Full Text
- View/download PDF
49. Do SMEs in Slovakia face real difficulties in obtaining financing? Comparison of the studies from Slovakia and the EU.
- Author
-
Ključnikov, Aleksandr, Majková, Monika Sobeková, Schwendemann, Alexander, and Knogler, Christian
- Subjects
SMALL business finance ,SLOVAKIAN economy ,FINANCIAL crises - Abstract
Financial crises and worsening economic and business conditions reduce the number of enterprises in Slovakia. Many relevant institutions declare that barriers for doing business are increasing and many small companies have problems with financing. We decided to compare several scientific research studies from Slovakia and provide an answer to the question: Do SMEs in Slovakia really have problems with obtaining financial resources or is it just an overused assumption? Do companies face this type of financial risk? The aim of this article is to bring an answer to this question on the basis of the results of two scientific research studies conducted in Slovakia and focused on business and finance. The first was conducted in cooperation with the Association of Young Entrepreneurs and the second was part of international research at the Pan-european University in Bratislava and The University of Tomáš Baťa in Zlín. Both were realized in 2011-2013.The paper compares the obtained evidence with the statistical data from the EU. The comparison of Slovak and EU results concerning the situation with SMEs access to financing in Slovakia allowed to identify the differences and similarities regarding the stated hypotheses. This comparison offers a wider view on the situation in Slovakia and other EU countries.The results of our study provide interesting conclusions. Slovak research studies explain that problems with access to financing of SMEs are in some way more pressing than according to the EU statistical data, but all research studies provide clear evidence about the difficulties SMEs face in obtaining finance in Slovakia. [ABSTRACT FROM AUTHOR]
- Published
- 2016
- Full Text
- View/download PDF
50. How Does the Economic-Financial Crisis Affect Our Education? Study on EU-28 Countries.
- Author
-
Simona, Ghita, Emilia, Titan, and Cristina, Boboc
- Subjects
FINANCIAL crises ,UNEMPLOYMENT statistics ,ECONOMIC conditions in the European Union ,PUBLIC spending ,EDUCATION ,TWENTY-first century - Abstract
During the last global financial crisis, the unemployment rate grew significantly, reaching dramatic accents among youth. Unemployment phenomenon hit various segments of population with different levels of education, but especially those without an upper secondary education. This paper examines how the latest global financial crisis has influenced major developments in education and training, using, on the one hand, indicators that reflect the general economic picture in EU countries, and, on the other hand, indicators that reflect aspects of the education sector. Also, the paper analyzes the relationship between financial and the non-financial sides of education and training sector. The following indicators were included in the analysis: Participation rate in education, Early leavers from education and training, Total public expenditure on education, General Government Deficit. [ABSTRACT FROM AUTHOR]
- Published
- 2013
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