Institutions as the Ordering Factor and as the Destabilizing Force: New Institutional and Post Keynesian Perspectives

2006 ◽  
pp. 102-118 ◽  
Author(s):  
A. Skorobogatov
Keyword(s):  
Economic Policy ◽  
Business Cycles ◽  
Institutional Theory ◽  
Institutional Environment ◽  
Institutional Arrangements ◽  
Economic Stability ◽  
Forward Contracts

The paper is dedicated to the New Institutional and Post Keynesian perspectives on institutions and their relation to economic stability. Embeddedness, institutional environment, and institutional arrangements are considered. Within these institutions conventional expectations, the economic policy and forward contracts are analyzed. Upon these perspectives the author shows a contradictory relation between institutions and the order and develops an institutional theory of business cycles.

The end of Alchemy of Finance and Sovereign Money (on the books by M. King “The end of Alchemy: Money, Banking and the Future of the Global Economy” and by J. Huber “Sovereign Money. Beyond Reserve Banking”)

2017 ◽  
pp. 131-141 ◽  
Author(s):  
V. Yefimov
Keyword(s):  
Economic Policy ◽  
Central Bank ◽  
Institutional Theory ◽  
Money Supply ◽  
Government Spending ◽  
Global Economy ◽  
Private Banks ◽  
Money Creation ◽  
Ministry Of Finance ◽  
Reserve Banking

The review discusses the institutional theory of money considered in the books by King and Huber, and the conclusions that follow from it for economic policy. In accordance with this theory, at present the most of the money supply is created not by the Central Bank but by private banks. When a bank issues a loan, new money is created, and when the loan is repaid this money is destructed. The concept of sovereign money involves the monopoly of money creation of the central bank. In this case the most of newly created money is handed over to the ministry of finance to implement government spending.

The efficiency of the monodirectional economic policy of smaller countries during the globalization and multipolar world

2020 ◽  
Vol 16 (5) ◽  
pp. 929-949
Author(s):  
A.M. Chernysheva
Keyword(s):  
Economic Policy ◽  
Development Strategy ◽  
Systems Approach ◽  
National Development ◽  
Current Phase ◽  
Data Series ◽  
Economic Stability ◽  
The Sustainable Development ◽  
The Republic ◽  
Former Ussr

Subject. After the collapse of the USSR, smaller countries chose different paths in their economic policy during the globalization and the multipolar world. The EU, USA and Russia made a palpable contribution to the economic policy of smaller countries. Some countries of the former USSR failed to find their course, while the others immediately followed their development strategy and stuck to it persistently. Objectives. I examine the economics of the monodirectional strategy of smaller countries of the former USSR. I also evaluate how the countries found their position among different leading countries as points of attraction. The study is based on the assumption that the single direction of the national development and adherence to the same point of attraction will ensure the sustainable development. However, the economic development level depends on the health of a certain economy as a point of attraction. Methods. The study is based on the systems approach, comparative and statistical methods for analyzing macroeconomic data series. Results. I investigated the dynamics of key macroeconomic data in the Republic of Belarus, Latvia and Estonia, such as GDP per capita in current values, unemployment rate and Purchasing Power Index. Given the current phase of globalization and multipolar world, it is crucial for smaller countries to choose a development strategy to follow persistently and achieve proper macroeconomic indicators that depend on the economic stability of counties they treat as their benchmarks. Conclusions and Relevance. I should mention the successful economic policy of Estonia and Latvia, which followed the same course as the other EU countries, as opposed to the Republic of Belarus tending to the policy of the Russian Federation. Nevertheless, the monodirectional development strategy also helps smaller countries ensure their economic stability.

Prime Ministers

2018 ◽  
Author(s):  
Patrick Weller
Keyword(s):  
New Zealand ◽  
Institutional Environment ◽  
Institutional Arrangements ◽  
Prime Ministers ◽  
Power And Influence

Prime ministers dominate, but still lose office. Why? This chapter explores the conundrum that infests debates on the prime ministers’ power and influence. It examines the ambiguous and uncertain institutional environment with its scope for initiatives and choices. It rejects normative notions of what prime ministers should do and illustrates that accusations of excessive power and ambition have been thrown at prime ministers from the very beginning. It identifies the strategy of the book: to compare institutional arrangements in four Westminster systems—Britain, Australia, Canada, and New Zealand—to see how prime ministers have chosen to define their role. It proposes tests for assessing prime ministers and for judging their performance and options.

scholarly journals Dealing fairly with trade imbalances in monetary unions

2021 ◽  
Vol 20 (1) ◽  
pp. 45-66
Author(s):  
Marco Meyer
Keyword(s):  
Economic Policy ◽  
Monetary Union ◽  
Trade Deficit ◽  
Current Situation ◽  
Institutional Arrangements ◽  
Monetary Unions ◽  
Member States ◽  
Trade Imbalances ◽  
Theories Of Justice ◽  
The Impact

Politicians around the globe wrangle about how to deal with trade imbalances. In the Eurozone, members running a trade deficit accuse members running a surplus of forcing them into deficit. Yet political philosophers have largely overlooked issues of justice related to trade imbalances. I address three such issues. First, what, if anything, is wrong with trade imbalances? I argue that in monetary unions, trade imbalances can lead to domination between member states. Second, who should bear the burden of rebalancing trade? I argue that surplus and deficit countries should share that burden. The current situation placing the burden squarely on deficit countries is unjust. Third, which institutional arrangements should monetary unions adopt to regulate trade balances? Monetary unions can either reduce trade imbalances within the monetary union, neutralise the impact of trade imbalances on the economic sovereignty of member states, or delegate economic policy affecting trade balances to a legitimate supranational institution. The Eurozone must adopt one of these options to prevent member states from domination. Which option protects members best against domination depends on what makes interference between members arbitrary, an unresolved question in republican theories of justice.

Sustainability practices during COVID-19: an institutional perspective

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Olena Klymenko ◽  
Lise Lillebrygfjeld Halse
Keyword(s):  
Data Collection ◽  
Institutional Theory ◽  
Supply Chains ◽  
Institutional Environment ◽  
Secondary Data ◽  
Institutional Perspective ◽  
Additional Time ◽  
Content Type ◽  
New Business ◽  
The One

PurposeThe purpose of this paper is to investigate how sustainable practices in supply chains are affected by the COVID-19 pandemic through the lens of institutional theory.Design/methodology/approachThis research applies a twofold data collection approach: 1) qualitative semistructured interviews and 2) secondary data collection that includes sustainability reports, newspaper articles, journal articles, strategic plans, research reports and statements made by authorities and stakeholders concerning decision-making. In total, managers representing six companies in Norway were interviewed.FindingsThe study suggests that during the COVID-19 pandemic, companies tend to focus on short-term decisions and economic issues. The long-term focus on sustainability has, however, increased at the cluster level. The research also indicates that the pandemic has led to the development of new business routines that may transform institutional norms. The diversity of institutional contexts can, on the one hand, drive sustainability transitions through pressures and supportive programs but, on the other hand, also hinder the development of sustainability thinking.Research limitations/implicationsInstitutional factors must be included when analyzing the effects of crises and sustainable transitions. Researchers are encouraged to explore the COVID-19 implications in the form of longitudinal studies.Practical implicationsPolicymakers can benefit from in-depth knowledge on the adverse effects of an institutional environment on sustainability. For managers, the outbreak of the pandemic can afford them additional time to revise their strategies and seek innovation. The pandemic highlights the need to build more resilient and sustainable systems that will aid managers in responding rapidly during future uncertainties and enduring sustainability trajectories in operations.Originality/valueThe paper offers an in-depth investigation of COVID-19 effects on the sustainability of supply chains by drawing on institutional theory.

The Influence of Institutional Environment on Environmental Practices and Its Impact on Regional Development

2018 ◽  
pp. 437-459
Author(s):  
María Dolores Sánchez-Fernández
Keyword(s):  
Institutional Theory ◽  
Regional Development ◽  
Institutional Environment ◽  
Institutional Context ◽  
Institutional Pressures ◽  
Gender Perspective ◽  
Environmental Practices ◽  
Institutional Influence

This chapter studied the institutional influence associated to environmental practices in hotels. The aim was to interpret whether it was the normative, coercive or mimetic pressures (Institutional pressures) that influenced the three, four and five star hotels in north of Portugal and Galicia (a gender perspective). In order to accomplish these objectives, the author used an investigation model that connects institutional context pressures with environmental practices and environmental practices with legitimacy. To study used the Institutional Theory as theoretical reference.

scholarly journals Business cycles and economic policy, 1945–2007

2010 ◽  
pp. 360-389 ◽  
Author(s):  
Stefano Battilossi ◽  
James Foreman-Peck ◽  
Gerhard Kling
Keyword(s):  
Economic Policy ◽  
Business Cycles

Does institutional theory explain integrated reporting adoption of Fortune 500 companies?

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Merve Kılıç ◽  
Ali Uyar ◽  
Cemil Kuzey ◽  
Abdullah S. Karaman
Keyword(s):  
Public Sector ◽  
Private Sector ◽  
Institutional Theory ◽  
Institutional Environment ◽  
Fortune 500 ◽  
Business Environment ◽  
Integrated Reporting ◽  
Content Type ◽  
The Public ◽  
Fortune 500 Companies

PurposeThe objective of this study is to investigate whether the institutional environment is associated with the adoption of integrated reporting.Design/methodology/approachThe sample of the study is based on the firms included in the list of Fortune Global 500. The logistic regression analysis was run to test the proposed hypotheses.FindingsThe findings indicated that the code-law orientation and strength of the institutional quality are significantly associated (i.e. positively and negatively, respectively) with the integrated reporting of Fortune 500 companies. Firms are motivated for more transparency in stakeholder-oriented and weakly regulated contexts. Thus, stakeholder pressure is more influential than shareholder interest in motivating or forcing firms to issue integrated reports. Besides, there appears to be a trade-off between the public sector and the private sector in terms of ensuring an accountable and transparent business environment. If the public sector does not undertake its role in ensuring a transparent business environment, the private sector fills the gap. The results are robust to alternative sampling and methodologies.Research limitations/implicationsThis study implied that the stakeholder orientation of countries fosters the transparency and accountability of firms. Corporate behavior is impacted by the institutional strength or weakness of nations. The institutional theory provides an appropriate ground to understand drivers of corporate reporting practices of firms beyond firm-level characteristics.Practical implicationsThe adoption of integrated reporting framework by Fortune 500 companies can be leveraged to alleviate concerns about their social and environmental impacts. Policy-makers in the countries which have a weak institutional environment force or encourage their firms to increasingly meet the transparency and accountability demands of society.Social implicationsThe research findings might play an encouraging role in that various stakeholders (i.e. customers, public, civil organizations and press) should undertake active roles and responsibilities to encourage firms to behave in socially and environmentally responsible ways.Originality/valueThis study adds to the literature by examining the influence of the institutional environment on the adoption of integrated reporting, using recent international data, and focusing on the largest companies according to the Fortune's annual Global 500 list. This study is one of the first to examine the association between a set of governance characteristics (i.e. board size, board independence and board diversity) and integrated reporting adoption.

scholarly journals Endogenous Political, Institutional, Cultural, and Geographic Determinants of Intermunicipal Cooperation—Evidence from Slovakia

2020 ◽  
Vol 12 (2) ◽  
pp. 709 ◽  
Author(s):  
Katarína Melichová ◽  
Lukáš Varecha
Keyword(s):  
Regression Analysis ◽  
Local Governments ◽  
Institutional Environment ◽  
Institutional Arrangements ◽  
Political Affiliation ◽  
Geographic Factors ◽  
Previous Evidence ◽  
Intermunicipal Cooperation ◽  
Communist Countries ◽  
The Impact

All over Europe, but especially in post-communist countries, the institutional environment has been undergoing major changes. In Slovakia, regaining their autonomy has led local governments on the path of fragmentation, unsustainably high expenditures for the provision of public services, and an increase in transaction costs. Current policies targeting these issues are heavily focused on intermunicipal cooperation (IMC). Based on four case studies of different institutional arrangements, this paper aims to investigate which endogenous political, institutional, cultural, and geographic factors influence cooperation among Slovak municipalities. Through the application of social network analysis and regression analysis, we reached several relevant conclusions. A number of common assumptions were confirmed, namely that population size and heterogeneity play a major role, but also that the impact of political affiliation as a deciding factor of IMC is not as straightforward as previous evidence suggested. Results also underline the importance of cross-sectoral partnerships such as the EU’s LEADER initiative as a viable alternative to more traditional forms of IMC (but with some limitations).

Putinomics

2018 ◽  
Author(s):  
Chris Miller
Keyword(s):  
Economic Policy ◽  
Oil Prices ◽  
Great Power ◽  
Economic Policies ◽  
Economic Stability ◽  
Economic Strategy ◽  
The World ◽  
The Face ◽  
Vladimir Putin

When Vladimir Putin first took power in 1999, he was a little-known figure ruling a country that was reeling from a decade and a half of crisis. In the years since, he has reestablished Russia as a great power. How did he do it? What principles have guided Putin's economic policies? What patterns can be discerned? In this new analysis of Putin's Russia, Chris Miller examines its economic policy and the tools Russia's elite have used to achieve its goals. Miller argues that despite Russia's corruption, cronyism, and overdependence on oil as an economic driver, Putin's economic strategy has been surprisingly successful. Explaining the economic policies that underwrote Putin's two-decades-long rule, Miller shows how, at every juncture, Putinomics has served Putin's needs by guaranteeing economic stability and supporting his accumulation of power. Even in the face of Western financial sanctions and low oil prices, Putin has never been more relevant on the world stage.

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