scholarly journals Inflation and Redistribution Processes in the Modern World

2021 ◽  
Vol 92 ◽  
pp. 07033
Author(s):  
Tatiana Kotcofana ◽  
Viktoria Bazzhina ◽  
Armen Altunyan
Keyword(s):  
Interest Rates ◽  
Global Economy ◽  
National Income ◽  
Value Added ◽  
The United States ◽  
Modern World ◽  
Historical Method ◽  
Goods And Services ◽  
Traded Goods ◽  
Monopolistic Pricing

Research background: Inflation and redistributive processes are the main permanent threats to economic stability in the modern world and these processes are closely interconnected. Inflation is a powerful tool for redistributing national income, both consciously used by economic entities and generated within the economic system. Purpose of the article: To demonstrate the variety of mechanisms that connects inflation and redistributive processes in the modern economy. Methods: The dialectical-materialistic and concrete-historical method forms the methodological basis of research. The empirical basis of analysis is formed by statistical materials and specific economic and statistical studies. Findings & Value added: Monopoly power in all its manifestations is the first and key mechanism for redistributing social income through inflation processes. The dollar’s monopoly position in international settlements has long been one of the factors of global inflation processes and redistribution of the global public product in favor of the United States in the global economy. The highest degree of monopolization of Russian market is the main generator of Russian inflation and the reason of the disproportionate development of Russian economy. The state has the largest number of redistributive levers and quite often acts as a voluntary or involuntary initiator of inflation and redistribution processes. Inflationary expectations make a significant contribution to the formation of inflationary potential in the face of low confidence in the authorities, lack of information, political monopolism, and economic instability. This is manifested in advance overpricing for traded goods and services, interest rates, etc., which, in turn, may strengthen redistribution processes, especially in the context of monopolistic pricing.

scholarly journals Global Outlook for 2018: Economy, Finance, and Monetary, with a Particular Case Study of Taiwan

2018 ◽  
Vol 10 (3) ◽  
pp. 133 ◽  
Author(s):  
Shyi-Min Lu
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Interest Rates ◽  
Global Economy ◽  
Average Rate ◽  
The United States ◽  
Gdp Growth ◽  
Advanced Economies ◽  
Global Economic Growth

In October 2017, IMF President Christine Lagarde declared that the GDP growth of world’s economies in the first half of 2017 was up to the broadest recovery since 2010. So far, the strength of global economic growth has been enhancing. The interest rates and inflation are still at a low level. The global economy has risen from the bottom in 2016 to reach its peak since 2011. As for the degree of economic development, the emerging markets grew fastest, followed by the developing countries, while the advanced economies grew moderately at an average rate around 2%. Manufacturing PMI in major countries, such as the United States, China, the Eurozone, and even Taiwan, have increased above 50 notably in the recent years, while the non-manufacturing PMI is also above 50. Accordingly, the main purpose of this paper is to forecast the global economy in 2018, which is on the trajectory of booming with a certain degree of uncertainty. A particular case study of Taiwan’s overall economic development is presented as well.

Effects of zero rating value added tax on government revenue in Namibia

2015 ◽  
Vol 6 (4) ◽  
pp. 343-355 ◽  
Author(s):  
Ojijo Odhiambo ◽  
John E. Odada
Keyword(s):  
Aggregate Demand ◽  
National Income ◽  
Value Added ◽  
Disposable Income ◽  
Government Revenue ◽  
Content Type ◽  
Goods And Services ◽  
Marginal Propensity To Consume ◽  
Long Run ◽  
Marginal Propensity

Purpose – The Government of Namibia has traditionally used fiscal (especially tax) policy as an instrument for annual budget formulation. Marginal tax rates for profits and various income brackets have been changed back and forth in response to changes in economic conditions. However, to date, no attempt has been made to evaluate the effectiveness of these reforms in achieving the broad national economic goals, in general, and the potential effects on government revenue in the short, medium and long-run periods, in particular. The purpose of this paper is to fill this information gap by analysing the implication of the 2008 zero-rating of value added tax (VAT) on basic commodities for aggregate demand and government revenue. Design/methodology/approach – The study uses an analytical framework based on economic theory which posits that in an open economy, which trades with the rest of the world, aggregate demand for goods and services is made up of consumption demand, investment demand, government demand and net exports and that real sector equilibrium is attained when aggregate supply of goods and services is equal to aggregate demand for goods and services. Findings – Using the Namibia Household Income and Expenditure Survey results, the annual loss in government revenue attributable to this policy is, ceteris paribus, estimated to be N$310.4 million. With a marginal propensity to consume out of disposable income of 0.89, total expenditure by households on goods and services is likely to increase by N$276.3 million per annum. In the medium-to-long-run, national income will have increased by N$303.9 million per annum. Taxes which are responsive to changes in the level of national income will have increased by N$85.7 million, compensating for just over one quarter of the estimated loss in government revenue of N$310.4 million. Research limitations/implications – The study has used a partial equilibrium model as opposed to computable general equilibrium model, which provides a consistent framework that meets most of the sectoral and institutional data requirements for the simple reason that a social accounting matrix which can be used readily to connect data from different sources, such as national accounts and household surveys and would thus have been ideal model for analysing the impacts of the VAT tax reform has not been developed for Namibia. Practical implications – The paper provides a number of practical policy options available for government including, but not limited to, increasing direct taxes, VAT rate on specific (luxury) goods and services and statutory VAT rate on all other commodities not zero-rated, other taxes such as taxes; and borrowing from external sources. Social implications – It is established that zero-rating VAT on all the basic commodities in 2008 reduces the VAT paid by all Namibian households by N$310.4 million per year, which represents the annual increase in the disposable income of all households. And with a marginal propensity to consume out of disposable income of 0.89, total expenditure by households on goods and services will increase by N$276.3 million per year. Originality/value – This paper presents the first attempt at evaluating the effectiveness of tax (VAT) policy reforms in Namibia in achieving the broad national economic goals, in general, and the potential effects on government revenue in the short, medium and long-run periods, in particular.

Oil Prices and the Global Economy

2016 ◽  
Vol 16 (210) ◽  
Author(s):  
Kamiar Mohaddes ◽  
M. Pesaran
Keyword(s):  
Interest Rates ◽  
Global Economy ◽  
Negative Relationship ◽  
Oil Prices ◽  
The United States ◽  
Equity Prices ◽  
Demand And Supply ◽  
Time Period ◽  
Oil Markets ◽  
The 2008 Financial Crisis

The recent plunge in oil prices has brought into question the generally accepted view that lower oil prices are good for the United States and the global economy. In this paper, using a quarterly multi-country econometric model, we first show that a fall in oil prices tends relatively quickly to lower interest rates and inflation in most countries, and increase global real equity prices. The effects on real output are positive, although they take longer to materialize (around four quarters after the shock). We then re-examine the effects of low oil prices on the U.S. economy over different sub-periods using monthly observations on real oil prices, real equity prices and real dividends. We confirm the perverse positive relationship between oil and equity prices over the period since the 2008 financial crisis highlighted in the recent literature, but show that this relationship has been unstable when considered over the longer time period of 1946–2016. In contrast, we find a stable negative relationship between oil prices and real dividends which we argue is a better proxy for economic activity (as compared to equity prices). On the supply side, the effects of lower oil prices differ widely across the different oil producers, and could be perverse initially, as some of the major oil producers try to compensate their loss of revenues by raising production. Taking demand and supply adjustments to oil price changes as a whole, we conclude that oil markets equilibrate but rather slowly, with large episodic swings between low and high oil prices.

scholarly journals Indirect taxation of cross-border e-trade: features of national and intergovernmental regulation

2020 ◽  
Vol 6 (1) ◽  
pp. 256-280
Author(s):  
Alexander I. Pogorletskiy ◽  
Mariya V. Keshner
Keyword(s):  
Global Economy ◽  
Rapid Development ◽  
National Level ◽  
Value Added ◽  
Modern World ◽  
General Description ◽  
Indirect Taxation ◽  
Cross Border ◽  
Tax Regulation

The contemporary research in the field of economic and legal assessment of e-trade development, published in Russia, provides a general description of the situation and prospects for the development of international online transactions. At the same time, the aggregate features of taxation of cross-border e-commerce (which is the paper’s subject) are highlighted, without focusing on indirect methods of tax regulation (which are the object of the paper). Based on previous theoretical, methodological and practical studies, the authors systematize the knowledge about cross-border e-commerce operations’ indirect tax regulation both at the national and interstate level, defining the main approaches to taxation in this area. They also propose to focus on the priority of the regulatory (stimulating) role of taxes in their application as tools for influencing international online trading transactions. The main provisions of the paper reveal the principles and features of collecting value-added tax (VAT), excise, customs, and postal duties in the field of export-import e-trade operations with goods, digital content, and electronic services in national tax systems. In addition, this paper characterizes the main directions of international coordination of cross-border e-commerce indirect taxation. The authors have proven their hypothesis that the rapid development of cross-border e-trade in the modern world makes this field of international economic relations attractive enough to enhance the fiscal role of indirect taxation at the national level; however, the difficulties for the global economy early in the third decade of the 21st century require prioritizing the regulating (stimulating) role of indirect taxes to support global economic and trade operations growth, including its electronic segment.

scholarly journals The International Trade Regime and the Quest for Free Digital Trade

2019 ◽  
Vol 22 (3) ◽  
pp. 671-692 ◽  
Author(s):  
Shamel Azmeh ◽  
Christopher Foster ◽  
Jaime Echavarri
Keyword(s):  
International Trade ◽  
Global Economy ◽  
The United States ◽  
The Internet ◽  
Trade Regime ◽  
Goods And Services ◽  
Cross Border ◽  
Internet Age ◽  
Data Flows ◽  
Previous Decade

Abstract The global economy is experiencing the digitalization of production, exchange, and consumption of goods and services. The internet and cross-border data flows are becoming important channels of trade as more products are traded through the web or integrate features that rely on digital connectivity. Reflecting the autonomy states have to enact such policies, national variations in internet governance have expanded over the previous decade, with states increasingly looking to use internet and data policies for economic and trade objectives. These dynamics are having important implications on the international trade regime through challenging existing trade rules and creating demands for new rules. This has resulted in growing debates in the trade arena around “digital trade,” as a number of states, led by the United States, push for rules as a way to discipline national internet policies and support trade in digital goods and services. This paper examines the political economy of this campaign. We argue that the objectives of this campaign go beyond updating rules to better fit the “Internet age” into achieving further liberalization of trade in goods and services. We highlight the technological contingency of existing international rules and show how technological shifts have been a driver of competitive regime creation and forum shifting contributing to processes of fragmentation of the international trade regime.

Book Reviews

2009 ◽  
Vol 47 (1) ◽  
pp. 192-193
Keyword(s):  
United States ◽  
Tax Reform ◽  
National Level ◽  
Value Added ◽  
The United States ◽  
Consumption Tax ◽  
Senior Lecturer ◽  
Goods And Services ◽  
Empirical Context ◽  
American Case

Isaac W. Martin of University of California, San Diego reviews “Taxing Reforms: The Politics of the Consumption Tax in Japan, the United States, Canada and Australia” by Richard Eccleston,. The EconLit Abstract of the reviewed work begins “Explores the politics of consumption tax reform in the four countries where the political resistance to such policies has been most acute--Australia, Canada, Japan, and the United States. Provides an overview of the contemporary literature on institutional and policy change and identifies a number of processes and mechanisms likely to be associated with comprehensive tax reform. Presents the empirical context for the book’s case studies and describes the rise and proliferation of value-added taxes over the course of the twentieth century. Describes the politics of consumption tax reform in Australia between the early 1970s and 2000. Considers the politics of introducing a national goods and services tax in Canada. Assesses the most notable exception to the trend toward implementing national level value added taxes among advanced industrial nations with an American case study. Identifies a number of occasions on which U.S. policymakers gave serious consideration to the introduction of a national value added tax. Eccleston is Senior Lecturer in the Department of Government at the University of Tasmania. Index.”

scholarly journals NEUROMARKETING IN THE CONTEXT OF SUSTAINABLE DEVELOPMENT PHILOSOPHY

2021 ◽  
Vol 2 (3) ◽  
pp. 61-67
Author(s):  
Olena Martyniuk ◽  
Tetiana Poplavska
Keyword(s):  
Sustainable Development ◽  
The United States ◽  
Marketing Ethics ◽  
Modern World ◽  
Economic Science ◽  
Self Healing ◽  
Main Research ◽  
Goods And Services ◽  
The World ◽  
The Way

This document aims to conduct a literature review in order to identify evolution and research trends in the area of neuromarketing end marketing ethics. The fact of deep systemic crisis of the modern civilization has been discussed by politicians, scientists and philosophers for at least last fifty years. Since then, more than forty of them have been published, that was base for the scientific thought development towards the formation of the concept of sustainable development of mankind. Self-healing changes are extremely slow, despite the enormous efforts of scientists, politicians and public figures. This is partly caused by the fact that in modern politics and economics the neuroscience achievements are used widely but these achievements are applied for narrowly selfish purposes that contradict the main goals and objectives of the concept of sustainable development. Therefore, it is relevant to turn to the analysis of a relatively new direction in modern economic science – neuromarketing, which is gaining the more influence in the society and is actively developing in use. As the world history experience shows, the most important prerequisite for the new civilization formation is a radical transformation of the spiritual (value-semantic) sphere of life. In turn, such transformation is unthinkable without the philosophical project of reconstruction and neoholism, the fundamental value of which is the eidos of harmony, can become such a project. In the modern world dominates the ideology of consumption, the products of which are the presence of fashion, wastefulness, profit orientation in decision making, etc. Consumption is the act of receiving goods or services. Overconsumption (or irrational consumption) that dominates in the world and is imposed by the entire marketing system is the phenomenon of receiving goods and services more than need – to a greater extent than a person needs. This is a dead end, because of which the entire system is going through a deep crisis. Some scientists believe that the way out of the crisis is possible through the interaction of science and economics, or rather neurosciences and economics, which leads to overconsumption of goods and services, which means the growth of incomes of large and medium-sized capital. Others see the way out in the new thinking development, a new philosophical paradigm, which must be introduced into the mass consciousness by means of education, thereby raising the level of consciousness and expanding the potential of a person. The most famous firms that have used neuromarketing techniques to achieve their goals are Coca-Cola, General Motors, Google Mars, Nestle and many other corporations. It is important to mention that the neuromarketing cost is increasing every year, for example, in 2015 the United States spent $25 billion on neuromarketing research. At the present stage, there are three main research methods in neuromarketing: electrical activity of the brain (EEG), oculography (eye movement, eye tracking) and analysis of facial expressions and non-verbal gestures. For example, in the evaluation process of the TV commercials effectiveness, specialists monitor the eyes and determine the speed of pupil movement. Analyzing the above, it can be argued that neuromarketing in the modern world is one of the leading and promising technologies for the society influencing. It is possible that its potential has not yet been fully formed and studied, but these studies are the highly paid item of expenditure in the large corporations.

Industry as a Key Factor for Economic Recovery and Competitiveness of the Europe

2014 ◽  
Vol 613 ◽  
pp. 441-445 ◽  
Author(s):  
Viera Kyseľová
Keyword(s):  
European Union ◽  
Global Economy ◽  
New Technology ◽  
Value Added ◽  
Integrated Approach ◽  
Growth Potential ◽  
Economic Recovery ◽  
The European Union ◽  
Goods And Services ◽  
Use Of Resources

Promotion of an integrated approach for industrial policy at European and national levels is crucial to ensuring the future competitiveness of the European Union and to raise growth potential. Essential for economic success and economic recovery of the European Union is an integrated single market, which creates an attractive environment for business, production of goods and services. Industrial modernization, investing in innovation, new technology, production inputs and skills, increased productivity, efficient use of resources and goods and services with high value added are prerequisites for achieving Europe's comparative advantage in the global economy. The main source of industrial future and competitiveness of the European Union are becoming investments in innovation and key technologies that redefine global value chains, make more efficient use of resources and redesign the international division of labor.

scholarly journals The Impact of BI Interest Rate and Amount of Money Supply on Inflation in Indonesia During 2017-2019

2021 ◽  
Vol 36 (1) ◽  
Author(s):  
Putri Sari Silaban ◽  
Dita Natania Harefa ◽  
Januarti Ira Melenia Napitupulu ◽  
Jessica Putri Br. Sembiring
Keyword(s):  
Interest Rates ◽  
Money Supply ◽  
Quantitative Data ◽  
National Income ◽  
Data Sources ◽  
Economic Indicators ◽  
Test Results ◽  
Goods And Services ◽  
Economic Progress ◽  
The Impact

The economic progress of a country is surely influenced by its economic indicators. This indicator is an important thing to pay it attention. One of the economic indicators is inflation. Inflation will affect the economy aggregately. Due to the increase in inflation and inflation instability, it will indicate that the level of prices for goods and services in a country is high. In the end, this will have an impact on people's interest in buying these goods or using these services. Of course, the large impact will be sustainable on national income. Therefore, this study aims to analyze the effect of interest rates and the money supply on inflation in Indonesia in 2017-2019. The types of data used in this study are quantitative data and the data sources used are taken from BPS for the 2017-2019 period. .The final result of this study showed that based on the results of the analysis, it could be concluded that interest rates and the amount of money have an impact on inflation with a significance value of 0,000296. Meanwhile, the t-test results indicate that interest rates and the money supply have an impact on inflation, respectively, with values of significance are  0.0371 and 0.0286.

scholarly journals EU Programmes’ Financial Support to SMEs: Reducing the Differences Under the View of Funding the Innovation and Key Technologies

2020 ◽  
Vol 11 (6) ◽  
pp. 74
Author(s):  
Athanasios G. Panagopoulos
Keyword(s):  
Interest Rates ◽  
Financial Support ◽  
Global Economy ◽  
National Income ◽  
Production Capacity ◽  
Financial Investments ◽  
World Economic ◽  
Economic Developments ◽  
Financial Issues ◽  
The Eu

Under their adaptable production structures and quick adjustment to technological innovations in the world economic developments, SMEs are among the most important wheels of both the EU economy and the whole global economy. This paper examines, the significance and the size of SMEs which contribute to production capacity, financial investments, economic development, and EU/national income, as well as employment and management and other areas, are combined and studied using a set of data and information; therefore, the EU Programmes which provide financial support are mainly organized regarding the financial issues of SMEs are also introduced. Under this logic, the parts of the funding programmes offered to SMEs within the EU budget over the budget period from 2014 to 2020 in the Union’s budget are assessed, and recommendations are suggested for the next years 2021-2027, as well. Consequently, banks and/or other financial institutions may not be able to constitute credit products, interest rates, loan amounts and appropriate repayment maturities that are suitable for the needs of SMEs, or most importantly, they may not have sufficient resources to finance specific credits.

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