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RISK ADMINISTRATION - THE ROLE OF GOVERNMENT DECISIONS IN THE VIEW OF NON-STANDARD MEASURED INSTRUMENTS.

Authors :
Hocman, František
Source :
International Multidisciplinary Scientific Conference on Social Sciences & Arts SGEM; 2016, p471-478, 8p
Publication Year :
2016

Abstract

Decisions of the rational individual are based on all available and identified information and to evaluate them individually and then interact using the form of reciprocally. After careful consideration of all the information, which is dependent on the value of adopting a decision and at the same time the future expected values defined expectations of preferential "states of nature". In the case that would have met all the prerequisites for the decision-making of individuals decision taker, the market would be effective and would avoid any variations that cause stock bubbles, securitization, the existence of the funds and the derivative market. As well as financial market imperfections arise from a lack of knowledge of information or its evaluation. Information asymmetry explains the emergence of generic situations, where one of the participants has more information than the counterparty. In connection with the situation and future progress in the global economy are increasingly "red warning lights" mentioned to refer. Despite the fact of belief, that Europe within the monetary policy will take all measures to recover and kick-start the economy through inflation, maintaining a continuous process will be limited by the progressive integration in reviving the waning economy. The instruments used for direct measures of risk, do not bring quick and efficient progress, therefore it is necessary to standardize unconventional tools to measure country risk, not only in terms of traditional indicators, but much more crucial to non-standard instruments determined by partial indicators of economic performance. [ABSTRACT FROM AUTHOR]

Details

Language :
English
ISSN :
23675659
Database :
Complementary Index
Journal :
International Multidisciplinary Scientific Conference on Social Sciences & Arts SGEM
Publication Type :
Conference
Accession number :
128318194