Suchergebnisse

The Great Depression of 1929 created significant consequences for the US economy and world economy that are detected through serious changes in output and prices. It contributed to put greater emphasis on aggregate demand and aggregate supply. Many economists agreed that in addition to monetary factors major impact on the crisis had also non-monetary factors. Numerous studies have indicated that even the gold standard played an important role in reducing output and the price level. This paper attempts to highlight key segments, such as the wrong monetary policy, the gold standard, neglected banking problems, political pressure aimed at relaxing the monetary policy as areas that have made mistakes when looking a way out of the crisis. The critics of such thesis believed that the tighter monetary policy was not strong enough to cause so far-reaching consequences and expressed serious doubts that the reduced money supply is the real cause of the collapse of the national product and price levels. According to some authors the use of the gold standard allowed a significant decline in the supply of money in order to survive as the monetary standard of the time despite his suspension during the war period because violated international trade and capital flows. Customs war in the 1930s is considered to be a serious cause for deepening the economic crisis which returned protectionism in economic policies on the world scene. Besides the analysis of aggregate demand considerable attention is paid to the aggregate supply expressed through the effects of financial crises and the rigidity of nominal wages. The paper also reviews the channels of debt deflation and stability of the banking capital.

The Covid-19 health crisis will eventually fade out, but the consequential economic crisis is right ahead of us, along with the ongoing climate crisis. The European Union's policies and institutions seem to hinder the green transition, in favor of fiscal balance and debt repayment among its member states. This paper proposes some fiscal policies, such as an EU "Employer of Last Resort" (ELR) program, which could successfully counter the upcoming depression and climate change, to finally bring economic and social prosperity to the EU's citizens.

The aim of the paper is to determine the interdependency of both balance of payments and fiscal deficit in the context of liberalized systems of capital flows with mainly stabile and appreciated exchange rate and their impact on the dynamics of growth of transition economies of Central and Eastern Europe with special retrospect to Croatia. In the research we used a classical econometric model for aggregated series of data of a group of transition countries, and individually for Croatia and Poland. We determine a significant regression interconnection between fiscal and balance of payments deficits for the group of transition countries, and individually for Croatia, with the exception of Poland and Eurozone. Furthermore, we explore the interdependency of these deficits with the growth rate of gross domestic product of analysed CEE countries and Croatia, where we obtain only partially significant regression results. The final conclusion of the analysis is the existence of significant inverse relationship of balance of payments and fiscal deficits of aggregates of transition economies and Croatia. Growth rates of gross domestic product loosely depend on the balance of payments deficit of groups of transition countries, which cannot be concluded for Croatia. In the case of relationship between the growth rate of gross domestic product with current budget deficits of the analyzed group of transition countries we do not obtain satisfactory significance. From the entire analysis we can conclude that the policy of reducing the balance of payments deficit with the secondary goal of reduction of budget deficit and a decrease in foreign debt, in present condition, has a pro-recessionary effect for the majority of transition countries. ; Cilj rada je istražiti međuovisnost platno bilančnoga i fiskalnoga deficita u kontekstu libelariziranoga sustava tokova kapitala s pretežno stabilnim i aprecirajućim valutnim tečajem, te utjecaj toga na dinamiku rasta gospodarstava tranzicijskih zemalja Centralne i Istočne Europe s posebnim osvrtom na Hrvatsku. U istraživanju su korišteni klasični ekonometrijski modeli za agregirane serije podataka skupine tranzicijskih zemalja, te pojedinačno za Hrvatsku i Poljsku. Utvrđene su signifikantne regresijske povezanosti fiskalnih i platnobilančnih deficita za tranzicijske zemlje skupno, te i pojedinačno za Hrvatsku, sa izuzetkom Poljske i euro zone. Zatim je istražena povezanost tih deficita sa stopama rasta bruto domaćih proizvoda pojedinih kategorija zemalja i Hrvatske, u čemu su rezultati regresijske analize tek djelomično signifikantni. Konačan zaključak analize jest postojanje vjerodostojne inverzne povezanosti platno bilančnih deficita sa proračunskim deficitima agregata tranzicijskih zemalja i Hrvatske pojedinačno, a stope rasta bruto domaćega proizvoda labavo ovise o platnobilančnom deficitu agregata tranzicijskih zemalja, dok se za Hrvatsku to ne može zaključiti. Za povezanost stope rasta bruto domaćega proizvoda sa tekućim deficitima proračuna analizirane skupine tranzicijskih zemalja nije se utvrdila zadovoljavajuća vjerodostojnost. Iz cjeline analize se zaključuje, da je politika smanjenja platnobilančnoga deficita s podciljem smanjenja proračunskoga deficita i smanjenja vanjskoga duga, u današnjim okolnostima, prorecesijskoga značaja za većinu tranzicijskih zemalja.

This research work studied the effect of economic depression on the growth of small and medium scale enterprises (SMEs) in Awka South Local Government Area, Anambra State and their contribution to economic growth. This research focuses on the extent to which economic hardship affects the operations and activities of SMEs in Awka South. The study was conducted in Awka South Local Government Area, Anambra State. Data for the study were collected from a representative sample of one hundred (100) SMEs entrepreneurs in the area. A systematic sampling technique would be used to select the respondents. The result of the analyses showed that economic depression impairs the growth of SMEs in Awka South Local Government Area, Anambra State. There should be adequate provision of infrastructures, government should give special consideration to SMEs by patronizing SMEs output, government should attract international financial institutions towards the growth and development of small scale industries in Awka South and Nigeria at large etc. JEL: L20; L23; L53 Article visualizations:

This paper is interested to introduce a new macroeconomic indicator to evaluate the impact of any massive pandemic such as COVID-19 on the world economy performance in the short run (1 year) and long run (10 years). The new macroeconomic indicator is entitled "The Economic Uncontrolled Desgrowth from COVID-19 (-δCOVID-19)." In fact, the new macroeconomic indicator assumes that always COVID-19 is going to be the major factor to generate a large economic leakage on the final GDP formation anytime and anywhere. Additionally, the same paper is willing to evaluate two post-COVID-19 possible scenarios. The first scenario: if COVID-19 is going to generate a short economic recession, then the world economy gross domestic product can delay between two and three years. The second scenario: if COVID-19 is going to produce a large economic depression, then the world economy gross domestic product can take easily between five and ten years such as the case of the world great depression of 1928. From now, the economists need to decide between two possible choices to solve these two types of economic crisis (recession or depression): The first choice is the uses of the classical economic policies –fiscal or monetary- from past experiences (Keynesians and Monetarists). The second choice is the creation of new and innovative polices approaches to reduce the COVID-19 damage under the support of new theoretical and methodological approaches.