Entre o neodesenvolvimentismo e a ortodoxia: contradições da política econômica no governo Dilma Rousseff

The following article aims to expose the reasons behind the failure of Dilma Rousseff’s government’s economic policy, seeking as it did to implement developmental strategies such as the Plano Brasil Maior [Greater Brazil Plan], which aimed to keep GDP growth high while maintaining the policy to reduce social inequality. Our hypothesis is that although national and international economic factors determined the strategy’s failure, the lack of consistency in the economic policy adopted was also a factor, which sought to use developmental tools in a highly conservative manner and abandoned them in the face of emerging fiscal and inflationary pressures, which were highly overvalued by the representatives of financial capital. Although Rousseff’s government attempted to challenge the interests of financial capital, it swiftly backed down and abandoned policies based on the growth of public investment and increased consumption. It therefore failed to achieve the benefits of accelerated development and the monetary stability so lauded by the financial sectors and their associates within the business sector.

The European Central Bank: the time is ripe for a major revision of its strategy

A revision of the European Central Bank's (ECB) strategy is urgently needed. For the new strategy, it is important to define the inflation target explicitly in symmetrical terms. Environmental policy objectives can in principle be reconciled with the ECB's mandate as long as they do not conflict with the objective of monetary stability. An essential element of any strategy is a heuristic that makes it relatively easy for the public to monitor whether monetary policy decisions are in line with the mandate. Among the possible heuristics, monetary targeting and the Taylor rule have to be ruled out while ‘inflation targeting’ offers a relatively simple navigation system for monetary policy discussions.

Interpreting Fiscal Risk for Lack of Bank Indonesia’s Capital

The research is focused on determining the government's obligation to meet the shortage of capital of Bank Indonesia (BI), as the central bank, in the National State Budget (APBN). The research analyzes the basis of the government's obligation to meet BI's lack of capital and a mechanism for fulfilling the government's obligations to cover BI deficiencies in line with the objectives of the APBN. This study uses a normative legal research method with a statute, interdisciplinary, and analytical approach. The result shows that the government's obligation to suffice BI's capital is intended to maintain BI's sustainability so that BI can continue to carry out its responsibilities and obligations to maintain monetary stability. Monetary stability has implications for economic stability and increases in people's welfare. In addition, the fulfilment of government obligations is contingent, limited and final. This obligation will only be born if BI is no longer able to overcome the lack of capital. The cause of the lack of capital is beyond BI's control, as evidenced by the results of an examination by the Supreme Audit Agency and requires the approval of the House of Representatives.

A financial Stability Index for Jordan

Financial stability is an important part of the Central Bank of Jordan (CBJ) role in parallel with maintenance of monetary stability. The impact of the global financial crises from 2007-2009 and the economic slowdown has left the Jordanian banking sector in a generally weaker position than before. This paper constructs an index of financial stability of the Jordanian banking sector that will adequately reflects the effects of the crises in 2008-2009 and measure the resilience of the banking sector against negative shocks. The index is based on the aggregation of the fifteen announced soundness indicators into four main categories: (i) Capital Adequacy, (ii) Earnings and Profitability, and (iii) liquidity to build one aggregate composite index. Using two weighting schemes the Financial Stability Index (FSI) proved to be a good indicator of banking reactions to shocks and changing economic conditions. FSI is intuitively attractive as it could enable policy makers to better monitor the banking sector’s resilience to shocks and can help further in anticipating the sources and causes of financial stress to the system. The index of financial stability of the banking sector in Jordan shows that the banking system has been consciously resilient against shocks and negative economic conditions.

ABOUT THE IMPORTANCE OF STUDYING (EUROPEAN) MONETARY LAW AT DOMESTIC LAW FACULTIES

This paper points to the real and logical need for academic studying of the positive law discipline of (European) Monetary law at Law Faculties in Serbia. This branch of law is necessary for the optimal legal regulation of monetary policy, state monetary conduct and preserving monetary stability as an important public good for every monetary jurisdiction in the world. The introduction of Jean Monnet Module for European Monetary Law at the Faculty of the Law, University of Niš, is a very important step in academic teaching and scientific research on the legal regulation of public monetary affairs. The authors conclude that lawyers must have specialist knowledge from this branch of law, considering the frequency of monetary disputes and implication of monetary stability on living standards of monetary habitats and their rights to have healthy and solid currency.

Monetary Stability and the Stability of the Open Society

Historical experience shows that the welfare state is what holds democracy and the market economy together. Neither a welfare state that is too small nor one that is too large can fulfill this connective function. A “stability pact” between citizens and the state is needed: 1. A welfare state to provide citizens security even in their old age. 2. In order to preserve appropriate incentives, the retirement system has to be a form of “saving” (forced saving) for old age. 3. In addition, most citizens also undertake voluntary saving. 4. The state provides for monetary stability. 5. The state uses itsfiscal policy to promote high employment. A modern understanding of personal freedom includes the security provided by a welfare state of appropriate dimensions. It follows that in the twenty-first century, a large part of the wealth of citizens consists of net claims on the state.