Modern monetary theory offers few novelities

2019 ◽  
Keyword(s):  
Private Sector ◽  
Full Employment ◽  
Economic Effects ◽  
Monetary Theory ◽  
Fiscal Deficits ◽  
Content Type ◽  
New School ◽  
Presidential Candidates ◽  
The Past ◽  
Economic Thinking

Subject Modern monetary theory. Significance Over the past year, academia and policymakers have devoted much attention to a new school of economic thinking, modern monetary theory (MMT). According to this, governments could -- and should -- spend as much as they can to achieve full employment. Governments can print money to finance this as they own the monopoly over currency and do not need revenues to finance such expenditure as states cannot go bankrupt. Impacts US presidential candidates could advocate MMT to promise high spending with no deleterious economic effects. MMT will tempt governments as it promises that they can finance large fiscal deficits cheaply. According to MMT, public deficits cannot be compared to private-sector budgets and have more flexibility to expand.

Private sector strengthens Africa regional ties

2015 ◽  
Keyword(s):  
Economic Policy ◽  
Private Sector ◽  
Private Equity ◽  
Emerging Market ◽  
African Continent ◽  
Content Type ◽  
The Past ◽  
Its Regions ◽  
Insurance Firms

Subject The role of the private sector in strengthening regional ties between African states. Significance Over the past decade, the African continent has experienced greater integration within and across its regions, especially through trade. While still lagging behind many other emerging market regions, this growth has been driven in large part by the private sector. More African companies are now expanding beyond the borders of their home countries. Private equity is playing an important role in funding this expansion, supporting companies with knowledge and experience to access broader markets. Impacts Commercial ties are pushing regulators to harmonise aspects of economic policy across borders, eg on banks and insurance firms. Longer-term integration projects -- eg African Central Bank and African Monetary Fund -- are unlikely to succeed. Firms from regional hegemons (Nigeria, Kenya and South Africa) will tend to have the greatest pan-Africa footprint.

The informal road to markets

2014 ◽  
Vol 41 (4) ◽  
pp. 278-293 ◽  
Author(s):  
Basak Kus
Keyword(s):  
Private Sector ◽  
Informal Economy ◽  
Economic Activities ◽  
Regulatory Relationship ◽  
Government Regulations ◽  
Content Type ◽  
The Past ◽  
Neoliberal Reforms ◽  
Regulatory Barriers ◽  
Turkish Case

Purpose – The informal economy has expanded across developing countries during the last decades. Focussing on the Turkish case, the purpose of this paper is to examine the role of neoliberal reforms in this development. The author argues that neoliberal reforms produced a double-edged transformation in the regulatory environment of Turkey. On the one hand, the legal rules that constrain the operation of market forces decreased giving way to more entrepreneurial activity; while on the other hand, the state's effectiveness in “policing” the market declined. As the regulatory barriers to private entrepreneurship decreased, the regulatory barriers to informality also decreased. Private sector growth and informalization emerged as the concomitant outcomes of neoliberal reforms. Design/methodology/approach – This paper examines how the state's changing regulatory relationship to the private sector under neoliberal reforms fostered informal economic activities through a close study of the Turkish case. Findings – At the end of the 1980s, the Peruvian economist Hernando De Soto popularized the view that informalization resulted from government regulations imposing rigid constraints and costs on economic actors, and so would be restrained by decreasing or eliminating them. The economic developments of the past few decades challenge this view, however. The size of the informal economy has expanded in developing nations at a period when government regulations have been declining. How can we explain the increasing volume of informal economic activity in developing nations over the past few decades? And more, how can we explain that this has happened during a period when the private sector has grown, and regulatory rigidities have declined? This paper argues that the state's changing regulatory relationship to the private sector under neoliberal reforms was an important factor in the expansion of informal economic activities. Originality/value – The implications of neoliberal reforms for economic processes have been widely studied in the social scientific literature. Only a handful of studies have explored their implications for the informal economy, however. These studies singled out factors such as the decline in public employment, weakening of labor unions, or capital's enhanced ability to exploit labor in contributing to informalization of developing country economies in the neoliberal era. By discussing how the changing regulatory contours of the state-economy relationship played a role in the growth of informally operating private enterprises, this paper adds to the existing knowledge of this relationship.

scholarly journals Management communication, unionization, FDI and company performance in a developing country

2014 ◽  
Vol 2 (2) ◽  
pp. 164-175 ◽  
Author(s):  
Richard Croucher ◽  
Marian Rizov ◽  
Ram Goolaup
Keyword(s):  
Private Sector ◽  
Strong Association ◽  
Positive Association ◽  
Employee Attitudes ◽  
Economic Effects ◽  
Company Performance ◽  
Management Communication ◽  
Ownership Type ◽  
Direct Communication ◽  
Content Type

Purpose – The purpose of this paper is to examine the associations between management direct communication to employees, unionization, foreign direct investment (FDI) and company performance in Mauritius, Africa's most successful economy. Design/methodology/approach – The authors use firm data from a survey conducted in Mauritius in late 2011. The authors conduct regression analysis to study the relationship between direct communication, unionization and performance conditional on ownership type. Findings – Mauritian labour unions, in common with their counterparts from mainland Africa, are strongest in the public sector. They have been characterized as weak and lacking in influence on management. Yet the authors find a strong association between unionization and management communication in the private sector. The authors also find a positive association between direct communication and company performance which the authors argue is likely to be an indirect consequence of unionization. FDI shows no particular effects. Research limitations/implications – It appears that the consequences of union presence transcend pay and conditions. The effects are unexpectedly marked, particularly when the stress by some authors on union weakness in the private sector is taken into account. Originality/value – It may be that local unions’ strong focus on the enterprise – a form of representation favoured by US-based multinational companies, constitutes a strength in stimulating management communication to employees by focusing union activities at that level. Whilst the authors have suggested that this is unlikely to be primarily a result of conscious union strategy, the enterprise focus may serve to buttress existing employee attitudes. In any event, unionization is certainly closely associated in this African country with a practice that is linked to positive economic effects at the enterprise level.

scholarly journals Airport management: a perspective article

2019 ◽  
Vol 75 (1) ◽  
pp. 102-108
Author(s):  
Anne Graham
Keyword(s):  
Private Sector ◽  
Design Methodology ◽  
Business Models ◽  
Public Utility ◽  
Airport Management ◽  
Content Type ◽  
Secondary Literature ◽  
The Past ◽  
Modern Enterprise

Purpose The purpose of this paper is to present an overall viewpoint on the past (1946-2020) and future (2020-2095) development of airport management. Design/methodology/approach The paper is based on a review of secondary literature. Findings The paper finds that the airport industry has transformed from a public utility to a modern enterprise, with private sector ownership, more competition, the expansion of commercial facilities and more diverse business models. Originality/value The paper provides a unique long-term and comprehensive view of past, current and future airport management, bringing together a number of linked developments, which is not found elsewhere.

Social costs of dollarisation will be high in Cuba

2020 ◽  
Keyword(s):  
Economic Policy ◽  
Soviet Union ◽  
Private Sector ◽  
Domestic Demand ◽  
Content Type ◽  
State Sector ◽  
The Past ◽  
The Soviet Union ◽  
The Government ◽  
Turn Over

Significance The economy, however, is in dire straits. Widespread shortages of everyday supplies are reminiscent of the crisis that followed collapse of the Soviet Union in the 1990s. Economic policy likewise has echoes of the past, with the government pursuing partial re-dollarisation. Impacts With dollarisation likely to spread to more sectors of the economy, the CUC faces a gradual demise. Parts of the private sector catering to domestic demand, such as transport, might benefit from relaxed regulations. The crisis might drive the state to turn over more services to the non-state sector.

Egypt may struggle to balance interests on rail reform

2019 ◽  
Keyword(s):  
Private Sector ◽  
Public Private Partnerships ◽  
Railway Network ◽  
Content Type ◽  
Ticket Price ◽  
The Past ◽  
Fuel Subsidies ◽  
The Government ◽  
Private Investors

Significance Over the past two years, the government has been planning an overhaul of its decrepit and dangerous railway network through investment and plans for public-private partnerships. Since February’s crash, in particular, officials have spoken of the urgency of implementing these measures. Impacts Concessions on planned new railway lines will be much more appealing for private investors. Large ticket price rises would likely generate popular discontent. The involvement of the private sector could streamline investments in construction and tourism. Successful improvement of the railways would reduce car usage, and thus fuel subsidies.

Corporate governance as a mechanism for the deterrence of economic crimes in the Commonwealth Caribbean

2015 ◽  
Vol 22 (3) ◽  
pp. 347-353 ◽  
Author(s):  
Suzanne Cecile Ffolkes-Goldson
Keyword(s):  
Economic Growth ◽  
Corporate Governance ◽  
Private Sector ◽  
Developing Economies ◽  
International Standards ◽  
Corporate Misconduct ◽  
Content Type ◽  
The Past ◽  
Commonwealth Caribbean ◽  
Transparency And Accountability

Purpose – The purpose of this paper is to highlight the need for good corporate governance (CG) as one of the mechanisms to combat corporate misconduct and, by extension, to encourage economic growth and development, with special emphasis on Jamaica, which not only has seen the greatest financial sector meltdown in the region, but has also seen the greatest response to the need for CG initiatives. Design/methodology/approach – For the past 20 years, CG has been at the forefront of discussions, legislation and moral suasion regarding corporate transparency and accountability, especially in the wake of spectacular scandals from the Maxwell debacle in the United Kingdom (1992), to Enron in the USA (2001), to the world economic crisis (2008). Codes have been adopted and legislation drafted to meet the concerns regarding corporate abuse, which have not only had an impact on the corporations and their shareholders, but also on a wider group of stakeholders, which includes, in some cases, the countries in which they operate. Not only have these scandals rocked the developed world, but corporate misconduct has taken an especially debilitating toll on developing economies, such as those found in the Commonwealth Caribbean. The cost of corporate misconduct in the region has included government bailouts, loss of jobs and loss of confidence in the markets. These, in turn, have had some negative impact on the development of many of the countries, which includes slow, stagnant or negative economic growth. Findings – The attention to CG in the Commonwealth Caribbean has grown tremendously in the past 10 years by the introduction of codes and legislation with a focus on transparency and accountability in accordance with international standards. The challenge now appears to be the need to link these initiatives with the anti-corruption project. This may be best achieved through the acknowledgment of the need for the private sector to play a greater role in the prevention of corruption through CG initiatives. Put another way, there may be need for an increased focus on the demand side of bribery and corruption rather than simply on the supply side. Finally, the development of emerging economies relies heavily on the stemming of corruption and mismanagement both in the public sector and the private sector. Originality/value – The original value of this paper is the development of CG principles in the region.

Is money the creation of the state or the market? (On the “modern monetary theory” as described in the textbook by W. Mitchell, L. R. Wray and M. Watts “Macroeconomics”)

2020 ◽  
pp. 121-134
Author(s):  
S. A. Andryushin
Keyword(s):  
Public Debt ◽  
Scientific Community ◽  
Full Employment ◽  
Term Effect ◽  
Scientific Concept ◽  
Monetary Theory ◽  
Left Wing ◽  
Medium Term ◽  
Short Term ◽  
Stimulation Of

In 2019, a textbook “Macroeconomics” was published in London, on the pages of which the authors presented a new monetary doctrine — Modern Monetary Theory, MMT, — an unorthodox concept based on the postulates of Post-Keynesianism, New Institutionalism, and the theory of Marxism. The attitude to this scientific concept in the scientific community is ambiguous. A smaller part of scientists actively support this doctrine, which is directly related to state monetary and fiscal stimulation of full employment, public debt servicing and economic growth. Others, the majority of economists, on the contrary, strongly criticize MMT, arguing that the new theory hides simple left-wing populism, designed for a temporary and short-term effect. This article considers the origins and the main provisions of MMT, its discussions with the mainstream, criticism of the basic tenets of MMT, and also assesses possible prospects for the development of MMT in the medium term.

Two Intellectual Landmarks in the Year 1749

2019 ◽  
Vol 17 (2) ◽  
pp. 101-123
Author(s):  
Farhad Rassekh
Keyword(s):  
Paradigm Shift ◽  
David Hume ◽  
Adam Smith ◽  
Considerable Extent ◽  
Monetary Theory ◽  
Economic Theories ◽  
Classical Economics ◽  
Wealth Of Nations ◽  
Economic Thinking

In the year 1749 Adam Smith conceived his theory of commercial liberty and David Hume laid the foundation of his monetary theory. These two intellectual developments, despite their brevity, heralded a paradigm shift in economic thinking. Smith expanded and promulgated his theory over the course of his scholarly career, culminating in the publication of The Wealth of Nations in 1776. Hume elaborated on the constituents of his monetary framework in several essays that were published in 1752. Although Smith and Hume devised their economic theories in 1749 independently, these theories complemented each other and to a considerable extent created the structure of classical economics.

Investigating interdependencies of sustainable supplier selection criteria: an appraisal using ISM

2020 ◽  
Vol 13 (2) ◽  
pp. 195-210 ◽  
Author(s):  
Avanish Singh Chauhan ◽  
Gaurav Kumar Badhotiya ◽  
Gunjan Soni ◽  
Prem Kumari
Keyword(s):  
Supplier Selection ◽  
Selection Criteria ◽  
Local Community ◽  
Pollution Prevention ◽  
Content Type ◽  
The Past ◽  
Micmac Analysis ◽  
Sustainable Supplier Selection ◽  
Social Environmental ◽  
Practical Implications

Purpose Because of the increased global competition and the need for environment consciousness, organisations have started focusing on incorporating sustainability dimensions into suppler selection criteria. In the past decade, sustainable supplier selection has received much attention from researchers as well as industry practitioners. The purpose of this paper is to identify various sustainable supplier selection criteria (SSSC) and underlying interdependencies among prominent selection criteria to develop a framework for sustainability dimensions. Design/methodology/approach The sustainable criteria for supplier selection were established through comprehensive literature review. An interpretive structural modelling (ISM) approach is used to investigate the interrelationships among these criteria. Findings A total of 21 SSSC under 3 dimensions (social, environmental and economic) are established. Ten criteria related to quality, capability, flexibility, waste management, pollution prevention, local community, employment practice, labour, etc. are exhibiting strong driving as well as dependence power, as demonstrated through ISM and matriced’ impacts croises-multiplication applique’ and classement (MICMAC) analysis. The findings show that delivery/service, eco design and rights of stakeholders are the “key” criteria having a high-driving and low-dependence power. These criteria require high attention from managers, while other criteria having low-driving and high-dependence power require secondary actions. Research limitations/implications The inter-relations for the development of ISM model and MICMAC analysis were obtained through the opinion of industry experts and academicians, which may tend to be subjectively biased. Further exploration is proposed to statistically validate the developed interdependency model. Practical implications This paper might act as a reference for the supplier development managers of organisations by providing an appraisal of various SSSC based on their interdependencies. Originality/value This study contributes to the knowledge base by proposing a framework of the interrelationships of the SSSC and also provides an additional perspective for managing these criteria based on ISM.

Sign in / Sign up

Export Citation Format

Share Document