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The interest of any individual to achieve progress and growth and the entrepreneur's desire to make a profit at all costs, show that humans have a consumptive and destructive nature, that is, man has often forgotten that he is part of the natural system, so that imbalances have been created, leading on the long-term to the deterioration, degradation and destruction of the natural environment, the effects being already felt worldwide. Educating and training people is an essential element that must be included in all programs regarding ecology and sustainable development, the only way to ensure a future. In order to eliminate the repercussions of climate change, population growth, poverty, water crisis, drought, depletion of resources, loss of biodiversity and to ensure social progress, economic and human development, clear actions are necessary, summarized in specific and measurable objectives, that are subject to some of the national strategies . The ecological / integrated monitoring involves obtaining an accurate, overall image of the environment's quality state at a moment in time as well as the evolution tendency on the two basic components - the biotic and abiotic environment - in their interaction. Sustainable development allows a nation to plan, implement and monitor the progress of society in order to achieve long-term goals, to meet the needs of current generations, but without preventing future generations to meet their own needs. We need to establish specific projects that enable us move on to a high added value generating model, generated by the interest in knowledge and innovation, aimed at continuously improving the quality of life of humans and the relationships between them, in harmony with the natural environment. Given the fact that Romania has an economy based on intensive use of resources and the natural capital is facing the risk of damage that may become irreversible, the assimilation and practical application of all the principles and practices of sustainable development is required. To integrate all the objectives of sustainable development at the heart of economic activity one should consider the tax and legal regulations to bring changes in the way of production and consumption.

At the beginning of 2013 the economic activity continued to slow down – the process that started in 2012. In February 2013 the investments in fixed assets growth rates made only 100.3% in annual Terms.

Ni les raisons structurelles du déclenchement de la crise, ni les moyens requis pour éviter qu’elle ne s’amplifie à très court terme ne sont, aujourd’hui, le principal objet de l’attention des gouvernements ni même de la plupart des économistes. La préoccupation lancinante, en Europe comme d’ailleurs aux Etats-Unis, tient à la lenteur de la reprise et à l’incapacité de trouver les moyens d’y remédier au point de faire resurgir l’hypothèse d’une stagnation séculaire. Le débat se poursuit, notamment en Europe, entre ceux qui entendent mettre en oeuvre des réformes structurelles tout en assurant la consolidation des budgets publics et ceux qui persistent dans l’idée qu’il faut accepter sinon amplifier les déficits publics pour soutenir la demande. Certes, des failles se font jour au sein de l’orthodoxie néo-libérale, conduisant certains à juger la récession en cours inutilement longue et douloureuse. Le bien fondé de la libération des mouvements de capitaux et de la consolidation budgétaire est questionné. Mais les réformes structurelles semblent épargnées, sauf à s’interroger sur le calendrier de leur mise en oeuvre.

This paper provides an analytic review of the upstream aspects of the exploitation of natural resources: the assignment of ownership rights, taxation, the discovery process, extraction, renewability, and clean-up. It sets these issues within the principal-agent framework. It proposes that the present common system whereby governments sell extraction rights prior to discovery through signature bonuses is likely to be socially costly, since the sale of rights occurs at a stage where irreducible risks generate a severe discount. It also proposes that the present common system whereby governments sell extraction rights by means of negotiated deals might disadvantage governments relative to more transparent and competitive systems such as auctions. While the paper is primarily analytic, it also briefly reviews African experience, suggesting that both high commodity prices and the low value of discovered assets per hectare imply major opportunities.

This paper explores the choices faced by developing country governments that have received substantial revenues from natural resources. The economic principles underlying the choices between consumption, domestic investment, and the accumulation of foreign assets are analysed. The priority should be to use revenues to promote growth and investment in the domestic economy and thereby put consumption on a rapid growth path, although absorptive capacity may constrain the scope for doing this in the short run. Foreign asset accumulation should be used primarily to smooth volatility, rather than to build up a long-term sovereign wealth fund. Trade-offs between private and public spending channels are examined from both an economic and political economy standpoint.

This paper introduces endogenous preference evolution into a Lucas-type economy and explores its consequences for investors' trading strategy and the dynamics of asset prices. In equilibrium, investors herd and hold the same portfolio of risky assets which is biased toward stocks of sectors that produce a socially preferred good. Price-dividend ratios, expected returns and return volatility are all time varying. In this way, preference evolution helps rationalize the observed under-performance and local biases of investors' portfolios and many empirical regularities of stock returns such a time variation, the value-growth effect and stochastic volatility. Keywords: Asset pricing, general equilibrium, heterogeneous investors, interdependent preferences, portfolio choice JEL Classification: D51, D91, E20, G12

Bien que la contribution de l’assurance soit reconnue aux plans national et international, et que son role dans le processus de developpement soit a l’ordre du jour des organisations internationales telles que la CNUCED, la Banque mondiale et le FMI, il demeure difficile d’evaluer son importance relative et sa valeur ajoutee. Comme les autres services financiers, l’assurance s’est developpee en meme temps que le developpement economique en general mais a egalement evolue qualitativement du fait de l’augmentation des risques et des incertitudes dans la plupart des economies. Ce texte presente les approches traditionnelles de la mesure economique de l’assurance et aborde les mesures possibles de sa valeur ajoutee a l’economie. Classification JEL : G22, E20.

While South Africa’s growth performance has improved somewhat in recent years, it has generally been poor over the past few decades. This article uses Chenery’s factor decomposition method to analyse the sources of growth in South Africa from 1970 to 2007. Using input-output data, the growth of each subsector is decomposed into components associated with export growth, import substitution, growth in domestic demand, and growth in intermediate demand. The results highlight the dependence on domestic demand expansion as a source of growth since 2000, especially for manufacturing. Subsectors which relied primarily on domestic demand expansion generally performed relatively poorly. Technological change is the only component of growth with a consistently positive and statistically significant correlation with subsectoral growth. The analysis contributes to a better understanding of growth in South Africa, particularly in terms of subsectoral dynamics.

Dynastic management is the inter-generational transmission of control over assets that is typical of family-owned firms. It is pervasive around the world, but especially in developing countries. We argue that dynastic management is a potential source of inefficiency: if the heir to the family firm has no talent for managerial decision-making, meritocracy fails. We present a simple model that studies the macroeconomic causes and consequences of this phenomenon. In our model, the incidence of dynastic management depends on the severity of asset-market imperfections, on the economy’s saving rate, and on the degree of inheritability of talent across generations. We therefore introduce novel channels through which financial-market failures and saving rates affect aggregate total factor productivity. Numerical simulations suggest that dynastic management may be a substantial contributor to observed cross-country differences in productivity.

We provide evidence on the dynamic effects of tax liability changes in the United States. We distinguish between surprise and anticipated tax changes. Preannounced but not yet implemented tax cuts give rise to contractions in output, investment, and hours worked while real wages increase. There are no significant anticipation effects on aggregate consumption. Implemented tax cuts, regardless of their timing, have expansionary effects, on output, consumption, investment, hours worked, and real wages. Results are shown to be robust. Tax shocks are important impulses to the US business cycle and anticipation effects have been important during several business cycle episodes. (JEL E23, E32, E62, H20, H30) T his paper estimates the dynamic macroeconomic effects of tax changes in the United States for the post-World War II period. We take into account the timing of tax changes by introducing a distinction between anticipated and unanticipated changes in taxes. According to economic theory, agents base their decision rules upon their current information about variables relevant for the decision problem. Unanticipated changes in taxes affect behavior when the tax changes are implemented, while anticipated changes in taxes may affect the economy ahead of their

This paper presents new evidence on urbanization using sub-county data for the United States from 1880-2000 and municipality data for Brazil from 1970-2000. We show that the two central stylized features of population growth for cities - Gibrat's Law and a stable population distribution - are strongly rejected when both rural and urban areas are considered. Population growth exhibits a U-shaped relationship with initial population density, and only becomes uncorrelated with initial population density at the high densities found in predominantly urban areas. We provide evidence that the explanation for these patterns lies in different employment growth dynamics in the agricultural and non-agricultural sectors and the process of structural transformation away from the agricultural sector.

Ten years after its introduction, the Euro is in an existential crisis. The crisis is the outcome of economic policies that have aimed at labour market flexibility and financial integration. This paper argues, firstly, that the aggregate demand regime in the Euro area is wage led. While an increase in wages (other things equal) does have a negative effect on investment and on net exports, it does have a positive effect on consumption. As the Euro area is a relatively closed economy, the consumption effect overpowers the investment effect and the export effect. Secondly, we argue that in the Euro area two growth models have emerged: a credit-led and an export-led model. These have given rise to the imbalances that are at the heart of the Euro crisis. Wage flexibility has proven insufficient to prevent these imbalances. Thirdly, we advocate a system of coordinated wage bargaining that aims at wages rising in line with productivity growth and a substantially upward-revised inflation target. If the project of European economic integration is to survive, it needs a drastic change in direction. An important building block of this redirection is a rethinking of the role of wage policy.

The Friedman rule states that steady-state welfare is maximized when there is deflation at the real rate of interest. Recent work by Khan, King, and Wolman [Review of Economic Studies10 (4), 825–860] uses a richer model but still finds deflation optimal. In an otherwise standard New Keynesian model we show that, if households have hyperbolic discounting, small positive rates of inflation can be optimal. In our baseline calibration, the optimal rate of inflation is 2.1% and remains positive across a wide range of calibrations.

The methodological approaches to the evaluation of financial security of the socially oriented development of the region's economy have been systemized in the article. The negative and positive aspects of the existing methods of evaluation of this type of economy have been defined taking into consideration the level of balanced social and economic development of the region and directions of its disequilibrium. Basic indicators and threshold values of indexes of the state of financial security of Ukraine and its regions have been outlined. According to the author, the region's financial security as an integral complex characteristic of the local economy largely determines the efficiency of realizing the municipal and state financial policies oriented on reaching strategic goals on the development of different level economic systems

This paper is a result of a reaction to delay in statistical data source regarding territorial economic reality. For example, in Romanian statistics, the national account indicators (GDP, added value, industrial output, etc.) in regional profile are available only for 2008. On the other hand, economic reality is talking about an unpredictable end of the economic crisis, both in global economy and in the Romanian economy. When statistical data is available we expect that the global economic crisis will be over and we try to find what type of back-up analysis will be adequate for the present regional economic state. In these circumstances, based on the available regional data, we try to estimate the predictable regional patterns of the propagations of the global economic crisis shocks into the Romanian economy, step by step, from 2008 to 2011. Thus, we begin with a quite integrate profile of the regional development in 2008 and, afterwards, based on a series of statistical data for the 2009-2011 period, we try to project predictable trends. The main equations of our research consist in: is there a stochastic pattern in global economic crisis propagation at regional level in the Romanian economy, or are there some consistent factors advocating a scientific explanation of regional disparities during economic crisis period. Taking in account this research objective, we implement an econometrical cross-section analysis of the main economic regional indicators between 1998-2008 and try to compare the estimated forecasts with the available regional statistics for the 2008-2011 period.

Since the fall of the monetary system from Bretton Woods, based on a system of fixed rates, numerous theoretical and empirical articles have emerged through which the volatility of the exchange rate and the commercial influxes was analyzed and the identification of specific connections regarding the transmission of the effects of the modification of the exchange rapport of a currency in economy was tried. The general idea from these works start from the uncertainties regarding the evolution of a currency in comparison to another and their effects on the goods and services balance of a state. Important works from the domain are evaluated. The authors are renowned researchers in the area of international finances and some of them are part of the personnel of the most important international finance-banking institutions such as the International Monetary Fund and the Bank of International Settlements. The studies regarding the relation between the exchange rates and the direct foreign investments are contradictory: some do not find a significant influence of the exchange rate and other demonstrate that there is a strong connection between the two variables. If a connection between the two variables is established, it remains to be settled if the connection is direct or reversed. The Granger causality test identified the characteristics of the relation between the direct foreign investments and the exchange rate. The conclusions of the research mark out the complex nature of the relation between the two variables, the results being extremely heterogeneous from one country to another.

This book review presents a summary of “Fault Lines : How Hidden Fractures Still Threaten the World Economy” by Raghuram Rajan, who puts forward a clear and cogent account of the latest global financial crisis. With the historical perspective he adopts, Rajan digs in deeper than the shallow surface to reveal the growing economic stresses in both the United States and the rest of the world that were overlooked at the time but came together eventually to trigger the crisis that drifted world economies into prolonged recessions. While elucidating the roots of the crisis, the book insightfully explains how structural problems piled up, how households, banks, and politicians acted on self-interest ignoring rising risks, and how policy makers stayed reluctant to act. Rajan emphasizes the importance of drawing right lessons out of the crisis to ensure a more balanced world economy and restore lasting prosperity on a global scale.

The credit insurance protects the dealers and the producers from the risk of non-payment by the consumers who buy or rent goods or benefit from similar credit facilities. It appeared as a necessity coming from the fact the most of the trade contracts are concluded when the payment is made partially or totally after the delivery of the goods or the performance of the services making the contract object, so with a late payments, respectively “a credit sale”.

This paper investigates the role that the entry and exit of heterogeneous firms plays in shaping aggregate fluctuations in economic activity. In so doing, it develops a dynamic stochastic general equilibrium model in which procyclical entry and countercyclical exit along a real business cycle lead to endogenous cyclical movements in average firm productivity. These movements stem from a composition effect due to the reallocation of market shares among firms with different levels of efficiency and affect the propagation of exogenous technological shocks. Numerical analysis suggests that existing models with representative firms may overstate the actual role of procyclical entry and exit in imperfectly competitive markets as a propagation mechanism of exogenous technology shocks. The reason is that procyclical entry and countercyclical exit disproportionately involve less efficiency firms whose impact on aggregate economic activity is hampered by their smaller size.

This paper provides a comparative study between temporary immigration policy and product outsourcing process, from the low-income developing country's point of view, which is supply side constrained by the availability of skilled labour. A two-country general equilibrium model establishes an inverse relationship between temporary immigration quota and product outsourcing. Though temporary immigration quota enhances world welfare and the developed country welfare, its impact on welfare level of the developing country is uncertain. In the empirical part, a panel data analysis shows that real consumption level of a set of developing countries increases with an increase in product outsourcing, given an inverse relationship between product outsourcing and temporary immigration policy.Keywords: Immigration, Outsourcing, Intermediate Input, Consumption, Panel AnalysisJEL classification: C23, E20, F2, F12, F22(ProQuest: ... denotes formulae omitted.)1. INTRODUCTIONConventionally international trade between a developed and a developing country, from a theoretical perspective, is based on the difference in relative factor endowments among them. International trade helps utilise the abundant factor. Internationally trading countries gain from relative factor abundance and lower relative price of factor inputs. For instance, a relative labour abundant developing country use the abundant factor and the gains from trade follow from lower relative factor price of labour. In recent times, trade in intermediate goods and factor inputs have assumed significance along with conventional merchandise trade in final goods. For a relatively capital abundant country, with regards to trade in factors inputs, the policy options are between import of low-priced foreign labour and export of domestic capital. It has been theoretically established, a la Ramaswami (1968), that importation of low-priced foreign labour is a better option than exportation of domestic capital for capital abundant developed countnes. Now the question is, "What is the choice for a labour abundant country: exportation of domestic labour or importation of foreign capital?" This paper investigates into the relationship between exports of domestic labour, that is, temporary migration, and product outsourcing from the perspective of a developing country.Migration and outsourcing are the two manifestations of trade in factor inputs: while migration includes cross-border movement of natural persons, international outsourcing1 involves cross-border movement of capital. Both immigration and international outsourcing increase cost-efficiency of the global production system (Murat and Paba, 2003). The labour-intensive part of the production process is reallocated from the developed country to the labour abundant developing country; the developing countries, engaged in such outsourcing contract, become a part of the globally integrated production chain.2 For instance, a growing outsourcing demand is directed towards India from different capital abundant countries including the USA. There are two types of outsourcing; product outsourcing and service outsourcing. Globally while product outsourcing takes place in engineering, automobile, textile, and chemical industries (Dubey, 2003),3 service outsourcing takes place in communication, information technology and information technology enabled sectors. The developing countries, through outsourcing not only expand their market for intermediate products, but also benefit from employment generation, profit maximisation, quality up-gradation, capacity utilisation skill-improvisation and technology transfer.Immigration is another way by which the pool of high-skilled labour in developing countries is being used by developed countries. Temporary immigration refers to the temporary movement of persons from one country to another to provide on-site services, when immigrants do not get the right to dwell permanently in the host country. …

It was marked out that the investors should be prepared for permanent changes of the forms in which the risk can manifest itself from the evolution of market economy grounded in the industrialized countries: operational, financial, strategic risks are also added to the traditional exposition to chance, caused by a series of factors, as legislation modifications, certain standards and European codes, the risks imposed by the evolution of the new economy, pressures that emerge in the personnel policy domain, the new needs for technical equipment, the costs efficiency, the spontaneous (unexpected, unplanned) economical events. It is interesting to analyze in what measure one can talk about the risk management in the strategies to attract the foreign investors in this context. This supposes an additional effort of the authorities to identify and subsequently eradicate the risk that could emerge in the case of some direct foreign investments in Romania.

Táto práca sa zaoberá analýzou vybraných makroekonomických ukazovateľov Ukrajiny a Kazachstanu, autori sa snažili identifikovať podobnosti a odlišnosti ich vývoja. Kazachstan a Ukrajina sú druhou resp. treťou najväčšou ekonomikou Spoločenstva nezávislých štátov, nemajú spoločné hranice, ale majú niekoľko spoločných ekonomických vlastností. Oba tieto štáty sú významnými obchodnými partnermi Ruska a majú niektoré podobné charakteristiky zahraničnej politiky a ekonomických prostredí.

The automotive industry had to withstand the effects of the economic crisis, a fact underlined by the automobile production which had a volume decrease between 2008 and 2009. The same situation occurred on the car market in Romania, with the difference that the decline began in 2009 and it has continued up to now. Regarding the car sales, the Toyota brand was negatively affected by the crisis and the number of cars sold decreased between 2009 and 2010. The same situation is specific for S.C. Next Automobile S.A., a company that provides only Toyota and Lexus cars on the car market.

On September 6–7, 2012, the Magyar Nemzeti Bank hosted the 11th Macroeconomic Research Workshop organized jointly with the CEPR. The title of the workshop was ‘Microeconomic Behavior and its Macroeconomic Implications During the Financial Crisis’. The event was highly topical, as the policymakers try to understand the impact of the financial crisis on different economic agents and tailor their response to it. The keynote speakers of the event were professors Christopher D. Carroll (Johns Hopkins University) and Matthew D. Shapiro (University of Michigan), who are well-renowned for their work which establishes the importance of agent heterogeneity and microeconomic behavior for macroeconomic outcomes. The event brought together researchers from both the academia and policymaking institutions, who presented their thought-provoking research which both empirically documented the importance of agent heterogeneity, and attempted to theoretically model its aggregate implications in the corporate, housing, banking sectors and labor markets. This article provides a summary of some of the lessons from the workshop, focusing in particular on reviewing the contributions by the keynote speakers and the papers presented at the workshop.

The effects of the economic crisis appeared in the services sector registering a wide spread. The services sector has been entirely affected by the crisis, but especially the field of tourism had a significant decline in 2008 and 2009. The following period offered a surprise regarding the return of tourism to the values recorded before the onset of the crisis. SC Ambassador Tours & Travels SRL managed to obtain surprising results due to the adopted decisions so that we can characterize it by the triad: availability - adaptability - dynamism.

The term fiscal responsibility in financial dictionary is defined as “A balanced budget”. That is a budget wherein expenditures during a given period of time equal to revenues. The fiscal responsibility also includes a budget in which revenue is greater than the expenditures. Fiscal responsibility is achievable and most of the individuals in their private life practice fiscal responsibility. At individual level everybody knows that they have to live within the budget and usually they do not overspend. Usually overspending by individual results in bad crediting rating which one receives from their creditors due to non-payments or late payments of installments and thus denies future benefits to the person concern. Fiscal responsibility at national level implies that a government has a balanced budget and has sufficient revenue to pay for its all expenditures. There would be no overspending if government had a true balanced budget in each period. The economic future of a nation largely depends on the way fiscal responsibility is practiced. There is a direct link between budget deficit today and what nation can enjoy in future. Fiscal responsibility is crucial for a nation to remain prosperous and stronger in future. Fiscal responsibility will also determine what kind of future we are leaving to our children and grandchildren for the next 20 years and beyond. If the fiscal responsibility is not practiced the government would spend more money than its income and it borrows for the difference. If the money borrowed come from domestic savings or from domestic lenders the economy will have less money available for capital investment and future productivity growth rates and levels would be lower. If on the other hand deficit is financed by foreign organisation/country the country will be indebted with growing debt to the rest of the world, with growing interest costs which must be served every year. If we rely more on foreign sources to finance the resource gap the foreign ownership of our resources would grow and so has our dependences on the actions of foreign governments and investors.

This paper aims to synthesize the debates concerning the development of the financial systems and the direct foreign investments in promoting the economic growth. The present work wants establish a connection between the development of the financial systems and the economic growth. Recent studies have marked out the correlation between the financial system, the catalyst factor, and the economic growth. The actual stage of the financial system from Romania, as well as the connection with the banking system and the financial institutions are also taken into account. The most recent structural changes of the financial system from Romania after the adhesion to the European Union, as well as the evolution of the direct foreign investments are also presented.

The North American Free Trade Agreement (NAFTA) once again became a newsworthy topic in the US media, this time during the contested Spring 2008 Democratic primary for the US presidency, particularly from campaign talking-points originating within Midwestern Rust-Belt states. Although the merits of NAFTA were central to the dialogue during this campaign season, similar debate did not warrant deliberation during the time of the general election in the Fall of 2008. An examination of media coverage dedicated to NAFTA in the lead-up to the past three American general elections confirmed these tendencies. Even though the Rust Belt, which is considered the key political toss-up region in the for the US presidency, has the most at stake concerning NAFTA’s effects, it remains to be seen if the trade pact will elicit debate from the presidential candidates during the Fall election in 2012.

In case of certain important objectives referring to product deliveries, the execution of works or the performances of services abroad, having big values, the international competition gets sharp forms. Some economical agents, for being placed on a more advantageous position in the competition where they participate, present firm offers valid for a certain lapse of time. The change of the economic conditions (price, interest, appreciation, financing conditions) during the validity of the firm offer in report to the one considered when accomplishing this one, could train for the exporter agent, in case of adjudicating the order, a loss that cannot be recovered from the importer..

The fiscal competition and the differential of the imposition quotations can be viewed from various perspectives: for certain countries (especially for those that are disadvantaged from the point of view of the resources, of the geographical location) a favorable taxation system can be viewed as a financial mechanism to attract new investments, while others consider it harmful, hijacking the investments from one country to another. It is then obvious why the internationalization determined globally the reconsideration of the fiscal policies regarding the direct foreign investments. Currently, a special attention is paid to the efficiency of the administration of the excise taxes in the host country, to the fiscal facilities, subsidies and the benefits offered to the contributors because the investing companies are directly influenced by the taxation applied in each country separately.

Foreign capital and institutional quality simultaneously play an important role in the development process of low-income countries. By and large developing nations fell short of funds necessary to spur the economic growth. Along with this constraint, they are facing the down fall in the quality of governance. Low earned revenues and high government expenditure increase the reliance upon the foreign capital mostly in the form of foreign aid and external debt. Just the availability of foreign funds is not sufficient to stimulate the economic growth, there is a need of good governance along with better quality of institutions that will act as a catalyst and improves the efficiency of capital, [see for instance, Agnor and Montiel (2010)]. Good governance establishes impartial, predictable and consistently enforced rules in the form of institutions and thus crucial for the sustained growth [North (1990 and 1992)]. Those countries which have good institutions show positive growth rates whenever the stock of capital increases but the countries with bad institutions, increase in capital investment may lead to negative growth rates due to rent seeking and other unproductive activities, Hall, et al. (2010). In this context, North (1992) argues that the institutions as well as the ideology shape economic performance. While taking into account the technology used, institutions affect economic performance by determining the cost of transaction and production. Formal rules, informal constraints and characteristics of enforcing those constraints together formulate the institutions. Institutions affect economic performance and the differential in performance of economies is basically influenced by the way institutions evolve. The neoclassical economic theory is of little help in investigating the sources beneath economic performance because institutions are taken for granted in their models Agnor and Montiel (2010).

Today, the world economy is at the brink of a major recession at zero lower bound. The recession has been fomented by the underconsumption induced by (i) the increasing income inequality, which is inherent in the neoliberal policymaking followed the last third of a century, and (ii) the declining wages being brought about by the increasing globalization and hence, international competition. And, the zero lower bound has been the aftermath of continuous interest rate reductions to confront the latent recessionary trends by stimulating investment but by increasing at the same time the prices of assets, bonds, and housing inciting several kinds of “bubbles” and inhibiting investment. The policy of “quantitative easing” in the place of interest rate reductions, a surrogate only of the latter has proved to be so far, for the simple reason that the money injections involved to spur business and household demand, are channeled towards the banking system, which withholds and does not pass on the money to the public. A money gift policy in the sense of transferring money directly to the public as a permanent asset for the private sector but not liability for the public sector, activating subsequently the Pigou effect, is advocated herein to be a viable policy alternative out of the current deadlock, ceteris paribus.

The Global Financial Crisis (GFC) of 2008 hit Denmark particularly hard. In this paper we argue that a combination of innovation in mortgage finance and the need to defend a euro-exchange rate peg was partly responsible. Sustained pressure against the Danish krone forced the central bank to increase policy interest rates consecutively in the last quarter of 2008. Monetary tightening in the midst of the GFC deepened the ongoing recession for the usual Keynesian aggregate demand reasons. Innovations in mortgage finance, which had made the economy more sensitive to changes in the policy rate, exacerbated this effect.

In a seminal paper on Marxian business cycle theory, Goodwin (1967) presented a model which assumed that a higher wage share leads to lower investment and thus a general economic slowdown. In contrast Kalecki (1971) was arguing that a higher wage share would have an expansionary effect because the consumption propensity out of wage income is higher than that out of profit income. Based on a general model that allows for wage-led as well as profit-led demand regimes, this paper estimates the effects of a change in the wage share on aggregate private domestic demand with quarterly data for 12 OECD countries. JEL classification: E11, E12, E20, E22, E25

This study aims to shed light on the Feldstein-Horioka (F-H) puzzle, making use of the potential explanations put forward in the related literature. To this end, the study takes a distinct empirical route, combining a cointegration technique and regression analysis. In the first step, we obtain three definitions for the dependent variable that represent the degree of the interaction between domestic saving and investment (S-I), employing a cointegration analysis for 86 countries in the sample. In the second step, each definition of the dependent variable is regressed on potential explanations for the co-movement of the S-I such as openness, country size, productivity shocks, and real interest rate differentials. After examining a number of potential variables for their explanatory power on this puzzle, however, none of the posited variables are found to be statistically significant determinants of the S-I interaction. The results indicate that the size of the economy, productivity shocks or interest rate differentials have almost no role in explaining the S-I behavior. Further, the findings show that openness has no influence on the S-I interaction, suggesting that it is not plausible to view the S-I correlation as an indicator of international capital mobility as F-H did.

Addressing the employment issue in Romania raises interest by its importance in the country’s economy. The concept of “flexicurity”, created relatively recently, and the connections between it and the employment issue and the labour market represents the subject of this paper. The degree of implementation of the flexicurity principles to the Romanian realities can be highlighted by the analysis of the main indicators characterizing it. This way it is demonstrated if there are differences between the values obtained in Romania and those registered in the European Union.

Germany has experienced a period of extreme nominal and real wage moderation since the mid 1990s. Contrary to the expectations of liberal economists this has failed to improve Germany’s mediocre economic performance. However, Germany is now running substantial current account surpluses. One possible explanation for Germany’s disappointing performance is found in Kaleckian theory, which highlights that the domestic demand effect of a decline in the wage share will typically be contractionary, whereas net exports will increase (Blecker 1989). The size of the foreign demand effect will critically depend on the degree of openness of the economy. The paper aims at estimating the demand side of a Bhaduri-Marglin (1990) –type model empirically for Germany. The paper builds on the estimation strategy of Stockhammer, Onaran and Ederer (2007) and Hein and Vogel (2008a, 2008b). The main contribution lies in a careful analysis of the effects of globalization. Since Germany is a large open economy by now it is a particularly interesting case study.

The present article has as a main theme the complex mechanism regarding the evolution of world global economy crisis started back in 2008, and its present influence at the level of Romanian economy. This paper herein will analyze, in short, a few of the theoretical, methodological, practical and implementation challenges brought about by the crisis in Romania, as well as the likely ways to prevent, mitigate impacts and resist to its shocks or to go back to the path of a sustainable economic growth.

Fin 2008, un mouvement de déstockage massif et mondial contribue à la forte contraction de l’activité et du commerce international. Ce mouvement est sans doute accentué par les contraintes financières sur les entreprises et par la transmission du choc le long de chaînes de production mondialisées. En sens inverse, mi-2009, le ralentissement du déstockage contribue à une reprise en « V ».

This essay is an overview of how the population of the largest coalfield of Romania Jiu Valley, the perceived major staff cuts in the mining industry, the solutions required for economic rehabilitation of the area and difficulties of everyday faced by residents of the region. Это эссе обзор того, как население крупнейших угольных месторождений в Румынии Жиу, воспринимает крупные сокращения персонала в горнодобывающей промышленности, решения, необходимые для восстановления экономики области и трудности повседневной жизни с которыми сталкиваются жители региона.

Beginning in 1825, the global economy has had a cyclical development. Growth and progress have not been determined by linear chaining but by circuitous development, by ups and downs, by phenomena such as crisis, depression, revival and prosperity. Piles of books were written, several Nobel prizes have been won on these issues, which are at the heart of economic theory. The economic policy inspired by this theory has achieved something notable and laudable at the same time, it has managed to reduce and prevent the conversion of sine wave peak in a crisis. The business cycle has thus been reduced to two significant stages: economic growth and recession. Crises have been avoided or have been changed into something bearable. However, in two famous cases, economic policies have failed to avoid serious crises: 1929-1933 and the present. These are unprecedented cases, of a scale and bearing consequences unparalleled by any other phenomena. On these two phenomena and especially on the second we will focus when we try to find the meaning of this lesson on crisis.

La microfinance a fait l’objet d’un colloque organisé par la Banque de France en juillet 2011. Les participants ont souligné son utilité comme outil d’inclusion financière, de développement économique et de lutte contre la pauvreté en s’appuyant sur les expériences des pays du Sud et ont proposé des pistes de réflexion pour le financement de son développement, ainsi que sur la pertinence et les modalités de sa régulation.

Unemployment is an imbalance of the labor market at national level - an excess of supply over demand levels and work with different evolutionary directions of countries and periods, which currently has a permanent character, but does not rule out the existence of employment status full labor. Unemployment costs, directly or indirectly, reveals that this phenomenon is a waste of human and financial resources generated by the use of an incomplete production funds, with implications for social costs. Direct costs are highlighted in the form of financial payments to the fund for social protection of unemployed, which is mainly used to pay unemployment benefits, support allowance, qualification and retraining of unemployed. Indirect costs are generated by reducing overall production and income that could benefit the entire population.

Asymmetric information theory says that individuals who cooperate in different situations have different levels of knowledge on a subject. The main role of a financial system is to direct funds to individuals and companies that have good money investments. To do this correctly, participants in financial markets should be able to make correct opinions on which investment opportunities are in some measure efficient. This is where the problems of information asymmetry occur: moral hazard and adverse selection. So financial crisis are triggered when these problems become particularly acute, and financial markets are unable to perform this crucial role of channeling funds to those who have the most efficient investments. Recent financial crisis, triggered in the U.S. and spread globally, has not spared Romania, and the present paper tried to highlight its main effects on our economy.

The beginning of the 90’s transitional period generated a significant increase of loans, in Eastern, South Eastern and Central Europe. The challenges that period brought were successfully overcome by the countries with flexible economies. Lately, the uncontrolled evolution of the credits determined a rapid growth, but also a bigger recession, especially for the countries with less consolidated economy. The opening of economies represented an opportunity for new investments, especially due to the governmental targets to increase the convergence with the Western Europe countries.

Analysis of Savings in the Classics View

We use a natural experiment to investigate the impact of participation constraints on individuals' decisions to invest in the stock market. Unexpected inheritance due to sudden deaths results in exogenous variation in financial wealth, and allows us to examine whether fixed entry and ongoing participation costs cause non-participation. We have three key findings. First, windfall wealth has a positive effect on participation. Second, the majority of households do not react to sizeable windfalls by entering the stock market, but hold on to substantial safe assets--even over longer horizons. Third, the majority of households inheriting stock holdings actively sell the entire portfolio. Overall, these findings suggest that participation by many individuals is unlikely to be constrained by financial participation costs. The Author 2011. Published by Oxford University Press on behalf of The Society for Financial Studies. All rights reserved. For Permissions, please e-mail: journals.permissions@oup.com., Oxford University Press.

The present study, through substance and form, proves that contemporary academic interest for techniques to generate economic cycles is not a new one, but a continuation of old actions. As a result, have been sketched theoretical itineraries, convergent or divergent, designated to reflect the dynamism of studies about this thesis. We are aware that this topic is studied intensely, in all its complexity; therefore, our attention will be focused toward analysis of causes which have determined the actual financial crisis.

The Banque de France organised a symposium on microfinance in July 2011. Based on the experience of Southern countries, the participants stressed the usefulness of microfinance as an instrument for financial inclusion, economic development and poverty reduction. They proposed several avenues for financing its development and discussed ways to regulate it and their relevance.

The present paper is an excerpt, with little adaptation, from the master thesis: “Project management’s contribution to international cooperation. How to make things work: ODA in Haiti” wrote under the coordination of Prof. Dr. Horst Brezinski from Technical University Freiberg Bergakademie and Prof. Dr. Eng.. Sabina Irimie from University of Petrosani, while benefiting from an Erasmus study scholarship at the first mentioned institution. It presents the case of Haiti, a small country facing big challenges and enjoying plenty of international attention especially due to the recent earthquake that struck the country at the beginning of 2010. The SWOT analysis inside the paper offers a detailed view of Haiti’s actual situation, identifying in the same time its problems and the variables that should be taken into consideration when designing programmes and projects targeting Haiti’s development.