Analysis of Minsky moment in the system of currency board in Bosnia and Herzegovina

In the past decade the world faced the consequences of the global economic crisis proclaimed in 2008. The common case for everyone was a financial crisis in which every country bore the burden of the crisis in its own way, and in each country generators of the crisis appeared in different segments. In the 1980s American economist Hyman P. Minsky wrote about this topic, explaining the characteristics of financial crises in rigid financial systems. The aim of this paper is to understand the causes and the consequences of the crisis through creation, growth and bursting of the credit bubble in separate market segments in Bosnia and Herzegovina through the system of currency board. Through the application of vector autoregression model (VAR) the responses to shocks, recorded on the side of demand for loans which were generated in the capital markets and in the construction sector, and the credit shock of demand, which formed, developed and then exploded after the proclamation of the global economic crisis in Bosnia and Herzegovina, were analyzed. Interpretation of the results through the light of hypothesis of Minsky moment is corroborated by an additional fact that a rigid monetary system like currency board did not provide the necessary mechanisms for the maintenance of financial stability. Stability of the financial system of Bosnia and Herzegovina was saved exclusively by the will of parent banks from abroad whose daughters participate in the financial system of Bosnia and Herzegovina.

The economics aspect of money laundering

The forms of threat to a country's economic system are very diverse. In modern times, perfidious systems of activity of organized crime groups are coming to light, especially in the field of organized crime. One such criminal activity is certainly money laundering, which is increasingly becoming a serious international problem. Money laundering is basically the legalization of capital acquired through criminal activity. As a criminal activity, it directly negatively affects the economics, political, legal, cultural and other significant values of a society. The most visible consequences of money laundering (most of which are economics in nature) are: undermining the integrity of financial markets, eroding control over economics policy, economic instability, loss of public revenue, deformation of savings and consumption, jeopardizing reform programs, loss of state reputation, etc. Money laundering is a complex and serious challenge for states and the entire international community. Considering that national strategies are not sufficient to combat this problem, a successful transnational approach and strategy are required.

Media framing of human trafficking

In recent decades, there has been notably increased engagement of the international community in combating human trafficking, which has also been contributed by the media. The role of the media is reflected in building certain public attitudes and influencing political decision-making. Based on the selected literature, the paper considers the media framing of human trafficking from the 1990s to the present. The media decides on how to approach trafficking, content and causes, information sources, generating and presenting alternative solutions process, as well as motivational procedures for initiating actions of the public and politicians, thus creating diagnostic, prognostic and motivational frames. Based on the research, it is concluded that media frames of human trafficking are not holistic but segmental, and instead of a comprehensive approach, stereotypes are presented in which trafficking is identified with sexual exploitation or considered as the consequence of migration or organized crime actions. This harms the victims, makes the identification of all perpetrators difficult, and narrows the focus of the suppression efforts. It is noted that in the relations between the media, the public and the authorities, in the process of creating a policy and implementing solutions for combating, there are significant influences of policy-makers on media framing, and thus on public attitudes, which provides support and legitimacy of current or future political decisions. In order to illustrate the diversity of media representation of human trafficking, as a COM-plex phenomenon and the possibility of different analyses of media framing, the main findings of several studies in the USA, EU, and Serbia are presented.

Application of value and structure of capital in enterprises applying the discounted cash flow (DNT) method

Valuation of the value and structure of capital using the discounted cash flow (DNT) method is one of the safer and more valid methods used by the valuation team to evaluate the value of the capital. It essentially involves the application of capital appreciation through a yield method of calculation. The data obtained by applying this method are confidently presented in the results of the assessment team, which are submitted to the top management of the company. The aim of this paper is to show the advantages of applying the method of estimating the value of the capital of the company, because in comparison with other methods of valuation, this method is viewed as a unique entity for profit making. The authors conclude that the use of DNT reveals a link between the achieved business results of the enterprise as measured by the size of the profit and the expression of the enterprise value. The contribution of the study's authors is that they have discovered a link between the value of a business and its ability to fertilize borrowed capital and make a profit.

External and internal macroeconomic shocks in case of small economy with the currency board

External and internal economic shocks can threaten the macroeconomic stability of a small economy. In the currency board regime, there is no role for the Central Bank as a macroeconomic stabilizer in the event of an external or internal shock. In this paper, the research is based on the analysis of eight countries with small economies with currency boards or discretionary monetary policy. The impact and connections between changes in EURIBOR, interest rates, inflation measured by the GDP deflator, money supply and GDP in the period 1997-2015 are analyzed. The paper proves that in countries with a currency board, whose regimes have a harmonized relationship with the European Central Bank and EURIBOR, interest rate shocks are less pronounced. The analysis of the links between EURIBOR, interest rates, money supply, inflation and GDP is not statistically significant in the "experiment" countries. In the control sample of countries with a variable exchange rate, the situation is heterogeneous for individual countries, but statistical significance has been determined in relation to EURIBOR and inflation. We conclude that EURIBOR may be one of the generators of exogenous shocks. In the case of Bosnia and Herzegovina (B&H), there are much more significant internal transmission mechanisms that lead to macroeconomic imbalances. The growth of deposits was preceded by the growth of loans and money supply. This led to a fall in interest rates which the Central Bank of BiH (CBB&H) could not influence due to the currency board. However, the fall in interest rates did not yield the expected results. GDP has shrunk, inflation is falling, while at the same time the high unemployment rate has remained unchanged. The nominal exchange rate of the domestic currency was determined by law, but there was an appreciation of the real exchange rate, which affected the increase in the foreign trade imbalance. The result of the currency board is price stability, nominal exchange rate stability and money supply growth. Negative results are: appreciation of the real exchange rate, faster growth of imports and maintaining a very high unemployment rate. Macroeconomic developments in the BiH economy do not always have the right course that can be expected in mature economies. The achievements and applicability of standard macroeconomic policies are very limited.

Fatigue as a threat in civil aviation

Fatigue as a term does not represent a disease, but a state of reduced mental and/or physical potentials and requires an interdisciplinary approach to detecting and managing risks in mutually related and conditioned work processes. Knowing the principle of fatigue allows us to discover, understand, predict and reduce the possibility of escalation of problems in a timely manner. Today, fatigue is recognized in civil aviation as the direct cause of more than 20% of incidents. Security and safety management measures are mainly aimed at reducing threats from a technical or procedural aspect while ignoring the fact that inadequate management of the Human Factor causes 80% of injuries, loss of life and material damage.

Impact of Covid-19 on banking business

The Covid-19 virus pandemic, declared in 2020 by the World Health Organization, has a very large impact on banking business around the world. The most significant problem is the growth of credit risk and the huge growth of demand for liquid assets. The crisis has also increased the risks associated with the digitalization of banking business and brought new risks posed by the work of employees from home. The timely reaction of regulatory authorities, at the global level, and the willingness of the monetary and fiscal authorities of all countries to cooperate have shown a very positive effect on the stability of the banking system.

Instruments for ensuring payments within the deadlines in the law on obligations

In this scientific paper, an analysis of the instruments for ensuring payments within the given deadlines in commercial transactions provided in the Law on Obligations has been performed. During the research and development of the scientific paper, the methods of analysis and the inductive-deductive method were used. Debt arrears as a legal institute is known as far back as Roman law. The Law on Obligations precisely defined the debt arrears. Pursuant to the provisions of the Law on Obligations, the debtor is late when he does not fulfill the obligation within the deadline set for fulfillment. Business conditions in our economy where many legal entities are insolvent and exceed the set deadlines for fulfilling obligations, have imposed the need for a precise legal regulation of instruments for improving the execution of payments within the given deadlines in commercial transactions between legal entities. The Law on Obligations provides instruments to improve the execution of payments in commercial transactions, which are used as additional instruments to the Law on Deadlines for Settlement of Monetary Obligations in Commercial Transactions.

The fight against corruption and social context

In this paper, the author tried to present the project of combating corruption in Serbia, starting from the theoretical definition and classification of this social phenomenon. Arguments are also provided proving that, in addition to good strategy and legal solutions, the effects in the fight against corruption also requires the establishment of a social climate in which zero tolerance for corruption will develop. The difficulty, on a global scale, is the fact that neoliberal capitalism encourages illegal activity, legitimizing it by the general rules of the free market. Bearing in mind that the provisions of the Law on the Anti-Corruption Agency also point to the prevention of corruption, the author has tried to answer the question to what extent the prevention designed here can prevent corruption, especially when it comes to those aspects that citizens in everyday life deal with most commonly encountered. The conclusion of this paper is that apart from suppressing corruption mechanisms, one should also take into account the general social situation that generates corruption - namely poverty and social insecurity, that is, suppression of corruption entails a much wider set of measures than anti-corruption laws.

Social inclusion policies and programs in the field of housing in the Republic of Serbia

Homelessness and inadequate housing were out of public policies focus in Europe for a long time. Different theoretical approaches in defining both of these terms, as well as their different manifestations, have resulted in limited activity of the European Union and European countries in formulating housing support policies and programs for vulnerable populations. The subject of this paper are housing support programs in the Republic of Serbia, with the aim of social inclusion of poor population. The objectives of the paper are to describe, analyze and compare available housing support programs in Europe and Serbia, while the method of research is content analysis of relevant political, strategic and legal documents in this field. Based on the analysis, it is concluded that there is a narrow understanding of the concept of homelessness and housing deprivation in public policies in our country, that no specific national strategy is represented and that the programs are dominantly focused on emergency and temporary accommodation services.