scholarly journals FINANCIAL CONTROL AND THE EMPLOYER OF LAST RESORT

2019 ◽  
Vol 3 (2) ◽  
pp. 39-48
Author(s):  
JAN TOPOROWSKI
Keyword(s):  
Financial Stability ◽  
Full Employment ◽  
Labour Productivity ◽  
Financial Control ◽  
Employment Policy ◽  
Involuntary Unemployment ◽  
Employment Policies ◽  
Employer Of Last Resort ◽  
The Government ◽  
The Impact

This paper examines the policy that has been suggested to resolve involuntary unemployment by having the government employ any persons who register as unemployed. This policy is compared to the full employment proposal of Michał Kalecki. Kalecki’s proposals also contained a strategy for financing full employment. Like the Employer of Last Resort proposal, Kalecki’s strategy allows employment policies to be examined from financial control, rather than the usual approaches of examining the impact of employment policy on labour productivity, or inflation, although both come into the analysis. The paper, therefore, outlines the proposal for an employer of last resort, and the proposed financing of that policy. A second part looks at Kalecki’s proposals for full employment and its financing. A third part then considers the impact of the employer of last resort policy on financial stability.

III. British Plans

1945 ◽  
Vol 39 (6) ◽  
pp. 1137-1147
Author(s):  
W. Hardy Wickwar
Keyword(s):  
United States ◽  
United Kingdom ◽  
Capital Investment ◽  
Full Employment ◽  
The United States ◽  
White Paper ◽  
Productive Capacity ◽  
Employment Policy ◽  
The United Kingdom ◽  
The Government

The United Kingdom has gone considerably farther than the United States in the acceptance of full employment as one of the prime aims of government policy. There is a widespread feeling that it may also have gone farther in devising governmental machinery for the realization of this aim. On both counts—the end and the means—the present trend in the United Kingdom merits attention in the United States and other countries.Official endorsement of full employment as a proper end for governmental policy dates back to 1944. The much-quoted white paper on Employment Policy was presented to Parliament by Lord Woolton, Minister of Reconstruction in the Churchill coalition, a few days before D-day. It began with the unequivocal statement: “The Government accept as one of their primary aims and responsibilities the maintenance of a high and stable level of employment after the war.” Shortly afterwards, at the conclusion of a three-day debate, the House of Commons passed a resolution moved by Laborite Ernest Bevin, then Minister of Labor and National Service, and supported on the side of the Conservatives by Sir John Anderson as Chancellor of the Exchequer: “That this House … welcomes the declaration of His Majesty's Government….” At no time later has this basic commitment been placed in doubt.Acceptance of full employment in business circles might be illustrated by a number of authoritative pronouncements made in the middle of the war. These include a pamphlet entitled The Problem of Unemployment, issued by Lever Brothers and Unilever Limited at the beginning of 1943. Here it was clearly argued that irregularity of capital investment was the principal cause of unemployment; that the profit motive had proved an insufficient guide in the extension of productive capacity; and that it was the task of government to regularize the incentive to investment by the use of indirect controls.

Federal State Shareholdings in Russian Companies

2003 ◽  
pp. 101-120 ◽  
Author(s):  
A. Muravyev
Keyword(s):  
Labour Productivity ◽  
State Ownership ◽  
Federal State ◽  
State Control ◽  
Different Types ◽  
Golden Shares ◽  
Equity Ownership ◽  
The Government ◽  
The Impact ◽  
State Enterprises

This paper studies the impact of federal state shareholdings on the performance of Russian companies. It focuses on mixed ownership companies rather than conventional state enterprises and distinguishes between several types of federal state shareholdings and golden shares. Econometric analysis shows that companies with state ownership generally perform worse than the average firm in terms of labour productivity and profitability. However, there are remarkable differences in the performance of companies with different types of state shareholdings. These differences are explained by different degrees of the federal state control over such enterprises. The paper concludes that the government should avoid keeping equity stakes in companies unless there is a necessity to retain them. Finally, the issue of golden shares in strategically important companies seems to be a reasonable alternative to retaining some control over them through equity ownership.

IV. Party Government and Employment Policy

1945 ◽  
Vol 39 (6) ◽  
pp. 1147-1157 ◽  
Author(s):  
E. E. Schattschneider
Keyword(s):  
Political Action ◽  
Full Employment ◽  
Political Conflict ◽  
Economic Policies ◽  
Employment Policy ◽  
Party Government ◽  
The Public ◽  
Stormy Weather ◽  
The Government ◽  
New Policies

The prediction that full employment will have a great political future is based on the fact that economic policies of this kind reach large segments of the public not previously accustomed to political action or only recently made aware of the potentialities of politics. Only the war itself has served to remind these relatively non-political people as urgently of the new importance of the government to every one as they are likely to be reminded by the establishment of the principle that public authority and public resources ought to be used to promote or produce sixty million jobs. What people do about the government depends on what they think the government is able to do. Therefore, the idea that the government is now able to protect people against the most dreaded of the manifestations of economic instability is almost certain to have a great impact on the political behavior of millions of people, many of whom have never before been drawn into the orbit of politics.Moreover, unless the millenium is here, it seems probable that a prolonged and disturbing controversy over employment policies is in the making. In fact, a major political conflict over these policies can probably be avoided only by the abandonment of the whole project, i.e., by conceding the argument that full employment is none of the business of the government. The friends of the new policies are, therefore, in the position of having to pray for stormy weather.

scholarly journals Macroprudential policy and financial stability, role and tools

2020 ◽  
Vol 4 (4) ◽  
pp. 45-54
Author(s):  
Mehdi Bouchetara ◽  
Abdelkader Nassour ◽  
Sidi Eyih
Keyword(s):  
Financial Crisis ◽  
Financial Stability ◽  
Full Employment ◽  
Financial System ◽  
Policy Instruments ◽  
Banking Crises ◽  
Real Economy ◽  
Macroprudential Policy ◽  
Systemic Risks ◽  
The Impact

The aim of macroprudential policy is to ensure financial stability by avoiding the outbreak of banking crises, which have a dangerous effect on the economy. Is macroprudential policy effective in the face of banking crises and systemic risks? The macroprudential policy has received significant interest from policy-makers and researchers. A few developing countries were using macroprudential policy tools well before the 2008 financial crisis, but significant progress has been made thereafter in both emerging and industrialized economies to put in place specific institutional settings for macroprudential policy. The fundamental objective of macroprudential policy is to maintain the stability of the financial system by making it more resistant and preventing the risk build-up. The objective of this paper is to analyze the important role of macroprudential policy in ensuring overall financial stability. Since the financial crisis of 2008, macroprudential policy has been increasingly used across economies. These measures aim at smoothing financial cycles and thereby mitigating the impact on the real economy, thereby allowing monetary policy to focus on price stability and promote growth and full employment. Macroprudential policy instruments fall into two categories, depending on their purpose, namely, to prevent procyclicality or to enhance the resilience and soundness of the financial system against shocks. The first category of instruments is used to stop bubbles from forming and smooth cycles, i.e. to force the debt-equity of economic operators on an income basis to prevent unsustainable credit bubbles, or to require dynamic loss provisioning rules. The second category of macro-prudential policy is to improve the resilience to shocks, such as capital surcharges for systemic institutions or the requirement to hold liquid assets to cope with market panics, and to make the financial system less complex. Keywords: macroprudential policy, financial stability, tools and measures, systemic risks.

scholarly journals COVID-19 and Spillover Effect of Global Economic Crisis on the United States’ Financial Stability

2021 ◽  
Vol 12 ◽  
Author(s):  
Khurram Shehzad ◽  
Liu Xiaoxing ◽  
Faik Bilgili ◽  
Emrah Koçak
Keyword(s):  
United States ◽  
Economic Crisis ◽  
Financial Stability ◽  
Global Economy ◽  
The United States ◽  
Financial Instability ◽  
Future Expectations ◽  
Health Crisis ◽  
The Government ◽  
The Impact

Due to the novel coronavirus pandemic (COVID-19), the lockdown engendered has had a vicious impact on the global economy. This analysis’ prime intention is to evaluate the impact of the United States’ economic and health crisis as a result of COVID-19 on its financial stability. Additionally, the investigation analyzed the spillover impact of the worldwide economic slowdown experienced by COVID-19 on the United States’ financial volatility. The study applied an autoregressive distributed lag (ARDL) model and discovered that the economic and health crises that occurred in the United States portentously upset the future expectations of its investors. Conspicuously, the health crisis in Spain and Italy were ominous spillovers of the United States’ financial instability in the short-run. Likewise, an economic crisis ensued in the United Kingdom because of COVID-19 causing spillover for the United States markets’ financial instability. The examination evaluated that Asian and African nations’ economic crises perilously affects the United States’ financial stability. The study determined that financial instability occurred in the United States due to its own economic and health crises persisted for a longer period than financial disequilibrium that occurred in other nations. The analysis suggested some strategies of smart lockdown that the government of the United States and other nations should follow to restart the economic cycle through tighter controls to minimize losses by following the steps of (a) preparing a lockdown checklist, (b) monitoring completion of lockdown tasks, and (c) complete a close-down stock take or count.

scholarly journals The Measure of Financial Stability and its Impact on Foreign Direct Investment: Evidence from BRIC Nations

2020 ◽  
Vol 5 (2) ◽  
pp. 80-93
Author(s):  
Anjala Kalsie ◽  
Jyoti Dhamija ◽  
Ashima Arora
Keyword(s):  
Foreign Direct Investment ◽  
Financial Stability ◽  
Direct Investment ◽  
Jel Classification ◽  
Least Square ◽  
Regression Framework ◽  
The Government ◽  
The Stability ◽  
The Right ◽  
The Impact

The stability of the economy has explicitly become a key objective for fiscal, economic, and monetary policy. It is a broader term described by different aspects of finance and the financial system. One variable cannot be recognized for defining and achieving stability. The purpose of this paper is two-fold, one to construct four measures of financial stability (MFS). The second purpose is to use the four constructed measures of financial stability in two stage least square (TSLS) regression framework to know the impact of MFA on Foreign Direct Investment (inwards) of BRIC for a period from 2000-2017. In case of Brazil, all the four measures of financial stability are significant. In case of Russia, government finances are not appropriately managed. In case of China, the large inflow of FDI is because of government policies as rest of the measures are negative. In case of India, the government measures are not efficient to attract the FDI.The openness of the economy is positively contributing to FDI in all countries except India. Of all the four nations Brazil is on the right path. JEL Classification Codes: F4, F6, H11, E60.  

scholarly journals The Impact of Globalisation on Economic Growth of Pakistan

2007 ◽  
Vol 46 (4II) ◽  
pp. 723-734 ◽  
Author(s):  
Mohammad Afzal
Keyword(s):  
Economic Growth ◽  
Full Employment ◽  
Global Market ◽  
Macroeconomic Policies ◽  
Financial Flows ◽  
Economic Implications ◽  
The World ◽  
The Government ◽  
National Economies ◽  
The Impact

Globalisation has diverse definitions and concepts.1 Globalisation has many facets and has a variety of social, political and economic implications. This term introduced in early 1980, which never precisely defined, is a frequently used word in the political economy. It simply means growing integration of the national economies, openness to trade, financial flows, foreign direct investment and the increasing interaction of people in all facets of their lives. Globalisation also implies internationalisation of production, distribution and marketing of goods and services. International integration implies the adoption of common policies by the individual countries. Between 1870 and 1914, the world was integrated into a single word economy dominated by one power: Great Britain. The government functions were limited and faced many constraints like gold standard and lack of freedom to pursue easy monetary policy. Later governments were burdened by performing many functions like achievement of macroeconomic goals—full employment, economic growth and price stability. Freedom of using macroeconomic policies resulted in greater integration of national economies but at the same time they led to international disintegration and interdependence. Streeten (1998) argues that today global market forces can lead to conflict between states, contributing to international disintegration and weakened governance. Before 1914, the world was more integrated than it is today but it did not prevent the First World War.

scholarly journals Can Technological Development affect positively Employment Policy?

2019 ◽  
Author(s):  
Omar H. Al-Saleh ◽  
Martin B. Allen
Keyword(s):  
New Technologies ◽  
Technological Development ◽  
New Technology ◽  
Digital Tools ◽  
Employment Policy ◽  
Skill Levels ◽  
Self Employment ◽  
Technology Changes ◽  
The Government ◽  
The Impact

It is known about the role of technological factors in HR. Technology changes the world of business and transforms the labor market. This work focuses in particular on the impact of new technologies to provide employment to workers, as well as self-employment. There are clear possibilities and wider use of digital tools. The government, companies and individuals today can benefit greatly from new "digital jobs" and from the use of digital tools. However, technology also brings risks. Some jobs can be digitized to varying degrees, and some workers or part of their functions are replaced with new technology. The ability to take advantage of these opportunities will vary from individual to individual; workers with higher skill levels are more likely to benefit, while those with lower levels of skills may be less willing to private new technologies, and therefore may be more at risk of poorer quality of work and even loss of work. Moreover, it seems that the larger the technology gap between domestic and foreign establishments. Available online at https://int-scientific-journals.com

scholarly journals Public Debt and Low-Interest Rates: Evidence from the Case of Morocco

2020 ◽  
Vol 4 (2) ◽  
pp. 98-107
Author(s):  
Hassane Eddassi
Keyword(s):  
Growth Rate ◽  
Interest Rate ◽  
Public Debt ◽  
Financial Stability ◽  
Debt Sustainability ◽  
Sustainability Analysis ◽  
Starting Point ◽  
The Government ◽  
The Interest Rate ◽  
The Impact

Public debt is a critical topic in modern economic literature. The necessity for massive public investments and economic reforms encouraged countries to solicit important amounts of debt from the international market. The accumulation of high levels of public debt impacts the fiscal equilibrium in countries and affects the ability of the government to meet its responsibilities. Debt Sustainability Analysis is an approach to investigate the capacity of a country to service its debt without the need to incur major fiscal costs (increasing taxes or reducing expenses). The sustainability of the debt is closely related to the interest rate and the growth rate of the GDP. It can be measured by the debt to GDP ratio. This paper investigates the debt sustainability in the case of Morocco. The paper tries to analyze the impact of the interest rate-growth rate differential on the path of the public debt in Morocco. The particularity of this analysis is the use of the Tax Adjusted Interest rate, instead of the regular interest rate. Using the adjusted rate allows for the ability to take into account the tax collected by the government on T-bills which provides a more accurate determination of the cost of the debt. The paper shows, with empirical evidence, that the sustainability of the debt can be insured when the growth rate is higher than the Tax Adjusted Interest rate, even in the absence of a balance surplus. Countries can meet their debt service requirements without severe fiscal measures under two requirements: a high growth rate and a low-interest rate. The conclusions of the paper constitute a source of information for policymakers, researchers, experts, and practitioners in the field of public debt. This study provides them with the required knowledge to manage public debt, make it more sustainable, and maintain financial stability. This study can also be a starting point for researchers desiring to analyze the efficient repartition of public debt among the economic sectors to ensure strong economic growth. Keywords: Debt Dynamic, Debt Sustainability Analysis, Fiscal Balance, Interest Rate-Growth Rate Differential, Public Debt, Stata, Tax Adjusted Interest rate, Treasury Bonds.

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