Financial Crises and the Sabotage of the Production process: A Veblenian Perspective

This report proposes a new approach for measuring regional resilience that goes beyond the assessment of traditional economic dimensions. It defines resilience as the societal ability to preserve and generate well-being in the presence of shocks and persistent structural changes in a sustainable manner, without hindering the well-being of future generations. The empirical exercise concentrates on the 2008 financial and economic crisis and the subsequent overall response of EU regions to the economic shock. We implement a three-step methodology: (i) select an extensive list of economic and non-economic variables that span the entire production process of societal well-being; (ii) compute regional resilience indicators based on the joint dynamic response of these variables to the crisis; (iii) identify those pre-crisis characteristics that differentiate resilient regions from the non-resilient ones. Our analysis reveals substantial heterogeneity in resilience across the European regions. It confirms the importance of expanding the measurement strategy to a broader list of subjective and objective well-being measures (like social inclusion, social capital, and quality of life). We show that observed resilience performance is highly dependent on the time horizon: resilience rankings of European regions are markedly different in the short and long run. The analysis of the recovery time provides additional information on the strength and weaknesses of regions, and it is largely dependent on the specific dimensions (variables) considered. Finally, our results highlight that certain country-level and regional characteristics, such as private sector credit flows and the gender employment gap, are strong predictors of resilient regional behaviour after the crisis.

In spite of emphasizing on a market by economic liberalism, most experts believe that market failure caused the deepest global crisis after Great Depression (1929) to happen. Although we cannot ignore the importance to the role of attendance of government to the economy, we believe that sometimes governments are the reason behind the problems in economic situation. Factors like the lack of political integration between European governments and cooperation of national government, the absence of mighty government to make decision and policy and undisciplined financial plans, as well as, loss of proper rules and low, which are occasions of bad government.

The articles dispute, that it is important to investigate the financial stagnation and chaotic situation that led to the crises in the international financial markets, and to highlight these consequences and reduce their percentage. It becomes a part of life by ensuring that future financial crises are affected as much as possible, and the world’s population suffers from unemployment there, the production process weakens, it becomes difficult to find the needs of the population, and this situation is increasing to chaotic. To avoid global financial crises, the study and research of past financial crises should not be repeated as much as possible. Consequently, this article plays the role of being one of the helper seeing these errors. Purpose: To study the financial crises that occurred in the financial markets is to prevent the repetition of those mistakes during the crises that may occur in the future. Methodology: Induction, deduction and analysis methods were used in the research work. The result of the study: It was determined that the crises in the financial markets. It happened due to the thoughtless, unexamined implementation of the activities that caused their beginning as the cause of occurrence. Crises are mainly caused by the fact that what some people do instinctively is sometimes wrong. In order to prevent this, increasing people’s financial knowledge is informing them of the wrong activities that happened in the past, and showing them the way out of these crises.

In Europe, the growing concern for environmental protection, along with expanding environmental legislation led to taking into account environmental audit in small and medium size enterprises (SME). This awareness coincides with that of various bodies involved in the production process, so that it became necessary to introduce environmental issues related to daily decision-making process. It is about developing an appropriate policy regarding environmental agreement in principle with the social, can turn into a powerful marketing tool if used correctly.

Banks form the central part of a nation's financial system by acting as a link between savers and the borrowers. In India, commercial banks play a vital role in the economic system. They help the economic system to function efficiently through their services like accepting deposits, lending, investing and other related activities. These services facilitate the economic processes of production, distribution and consumption. Hence, it is important for the banks to have better productivity in converting the deposits and borrowings into loans, advances, investments and fixed assets. Indian banking sector has shown strong progress over the last two decades and have supported economic growth. After the latest financial crisis in 2008, ensuring financial stability and productivity are the main objectives of commercial banks in India. Hence, the present study focuses on analysing the productivity of Indian commercial banks with reference to financial crisis using malmquist productivity index (MPI) for a period of 10 years. The results show that the global financial crisis has impacted on the efficiency of public and private sector banks in India.

The paper contains a series of complex analyses on the study of typologies of economic crises and can bring a significant contribution to the literature in determining the effects of external factors on economic growth, taking into account the distinct characteristics of the periods of decline. The work includes Hodrick-Prescott filtering techniques for characterizing business cycles in three Central and Eastern European countries and the Structural Vector Autoregression (SVAR) technique is used to analyze the impact of external shocks on economic growth over two distinct time-horizons. External shocks such as external debt, external interest rate, external output, producer price index and real interest rate were taken into account. For each economy analyzed, the impact of the two types of economic crisis was observed, namely financial crisis and health crisis, and two time-horizons were defined for each complete economic cycle. Over these two time-horizons, the impact of external shocks on economic growth has been assessed. There has been a general decrease in the effects of shocks in the second time-horizon, in which the most severe values of economic growth are associated with the health crisis, compared to the time-horizon associated with the financial crisis. It has also been observed that, in the case of both Hungary and Romania, the responses of economic growth to external shocks are faster compared to the Czech economy. Moreover, external production is the factor that explains most of the variance in the economic growth rate in the first time-horizon, while in the second, one of the most influential indicators is the external production price index, which has been severely affected by the slowdown in the global production process.

GDP, which only measures the value of the final product, ignores the various production processes that take place in the real world before the final product is produced. In this sense, GDP is not a reflection of the real world, but rather an artificially constructed measure of a ‘fictitious economy’. A bigger problem with GDP is that the identity equation, by which GDP is expressed as the sum of consumer spending, business investment spending, government spending, and net exports, is used in a causal way. Using this identity equation, governments often implement policies that increase spending to stimulate the economy and grow the economy. However, the principle of human behavior that one must first produce in order to consume implies that production is the cause and consumption is the effect. The idea, which implies that consumption is the cause, is thus incorrect because it goes against the principle of human behavior. This idea is based on Keynes's theory. Keynes's theory, as presented in his General Theory, is a misinterpretation of Say's Law of the Market, which states that “when one product is produced, it creates a demand for another product,” as “supply creates its own demand.” Macroeconomics, which was started based on the wrong Keynes' theory, is also a theory that is far from the real world and does not explain the economic problems that are occurring in the real world, such as the financial crisis. Therefore, in order for macroeconomics to properly explain the real world, it is necessary to establish a new macroeconomics. The new macroeconomics should be based on the principles of human behavior and should include the actual production process and the activities of entrepreneurs, who play an important role in the production process. The Austrian Business Cycle Theory, which covers these aspects, can serve as the cornerstone of a new macroeconomic theory.

Micro, small and medium enterprises or MSMEs refer to the types of small businesses that have a net worth of at most Rp. 200 million, excluding land and buildings where the business is located. MSMEs have proven to be resilient and able to withstand the economic crisis and monetary crisis in Indonesia. This paper aims to analyze UD Nata de Coco Citarasa in Bogor. The method used is descriptive qualitative analysis with a case study approach, observation and interviews. The result is . which is named the image of the taste of nata de coco, with the results of my interview with the owner that UD Nata de Coco is managed with a very simple management. Starting from the production process to marketing, and the production process is still using manually, there are no modern machines. Only use the tools in the kitchen in the production process. Marketing of their products is still not widespread, only by selling to small shophouses, and using word of mouth information, not using a separate website such as online sales. As a home-based business, financial management is still modest, not yet systematically following accounting standards. The financial reports are still integrated with the family finances.

Micro, small and medium enterprises or MSMEs refer to the types of small businesses that have a net worth of at most Rp. 200 million, excluding land and buildings where the business is located. MSMEs have proven to be resilient and able to withstand the economic crisis and monetary crisis in Indonesia. This paper aims to analyze UD Nata de Coco Citarasa in Bogor. The method used is descriptive qualitative analysis with a case study approach, observation and interviews. The result is . which is named the image of the taste of nata de coco, with the results of my interview with the owner that UD Nata de Coco is managed with a very simple management. Starting from the production process to marketing, and the production process is still using manually, there are no modern machines. Only use the tools in the kitchen in the production process. Marketing of their products is still not widespread, only by selling to small shophouses, and using word of mouth information, not using a separate website such as online sales. As a home-based business, financial management is still modest, not yet systematically following accounting standards. The financial reports are still integrated with the family finances.

Purpose – Because of large time lags between the production decision, completion and sale of output, any uncertainty during the process of production, such as bad weather, disease or financial crisis, can affect the prices within food markets systematically. Therefore, the paper aims to analyze the influence of production uncertainties on world's wheat and corn prices. Design/methodology/approach – In a specially designed two-step method, at first, the contributions of deterministic and uncertainty factors to wheat and corn production in around 100 countries are decomposed. Then, a panel model is applied to estimate the combined impact of each type of factors on the prices. Furthermore, the authors decompose the explained variances of the panel models in order to determine the importance of each type of factors for price adjustments. Findings – The uncertainties in wheat production do significantly affect both wheat and corn prices on a global scale, whilst those of corn do not. Moreover, the variance decompositions reveal that deterministic factors contribute much more to the explanation of world food prices than indeterministic factors. Practical implications – As deterministic factors are much more important than uncertainty factors for explaining market price movements, farmers should organize themselves to coordinate production in order to stabilize world food prices. Originality/value – The paper proposes a simple methodology, which enables scholars to integrate production uncertainties into food price analyses.

Financial early-warning is the important section for financial risk analysis and financial management; its purpose is to accurately discover and recognize financial risks in advance. The financial early-warning system lies in the whole process of production and operating activities of enterprises. Each enterprise should set up the applicable early-warning system, help enterprises foresee and prevent the financial risk and financial crisis. How to conduct accurate early-warning may reflect whether the risk management of enterprises is good or bad. This paper sets up the early-warning mathematical model of financial risk by selecting the samples of financial database of listed companies through the multivariable principal component analysis. Meanwhile, it reflects different risk degrees, so as to predict the financial risk of enterprises.

We are in the middle of an international financial crisis, which intensifies the demands on high quality, reliable and efficient solutions that optimize production processes, making production more efficient while minimizing cost, produce more with high quality, with few raw materials and less energy. It is these circumstances that necessitates the use of response surface methodology to search for the optimal conditions for improving grinding process in case of convex situations in paper producing industries. The uniqueness of this work focused on modeling and adopting the necessary assumptions and conditions to further reduced the formulated second order response surface model to obtain a more adequate model that best optimized the production process. The design was based on the use of central composite rotatable approach known as CCRD with the grinding fineness as the response. The conditions were subjected to experimental method, search method, graphical method and feasible region approach to generate the result which is not significantly different from each other using the reduced model. We could established nine grinding conditions which involves one center points with four factorial and four axial points. The reduced second order response surface model was optimized to obtain the best grinding at machine voltage of two hundred within fifty minutes. It is on this condition that the response variable gave the value of 1399.36 meshes.

Background and Aims. Evidence Based Medicine (EBM) neglects factors extrinsic to science. To bypass such a limitation, a global approach for validation of treatment methods is proposed. In addition to effectiveness, further standards are required, in order to include priority issues like bioethics, environment preservation, global financial crisis, and undeclared conflict of interest.
 Methods. We suggest to evaluate any healing system within a “five E framework” by applying the following standards: 1) evidence (see EBM), 2) epistemology, 3) ethics, 4) ecology, and 5) economy.
 2) Preliminary adaptation of any research to the epistemological background of the treatment to be evaluated is needed, in order to compensate for the poor compliance of EBM methodology to holistic methods. The restrictions imposed by the rules of classical epidemiology to study design (see case definition and standardization of treatment) can completely twist the analysis of results.
 3) The ethical standard implies giving attention given to treatment invasiveness, related both to life of animals employed in experimental studies and to side effects on health of human volunteers or patients.
 4) The ecological standard, consisting in the implications of pharmaceutical production on environment, should be analyzed in terms of ecological footprint, i.e. for the global effects of industrial waste on ecosystems and species.
 5) The economical standard evaluates both the impact of financial crisis and the role played by conflict of interest, comparing allopathy with holistic systems.
 Conclusions. The “five E framework” seems more adequate, for several reasons, to validate homeopathy or other treatment methods, if compared with the sole EBM approach.
 Misunderstanding of results and consequent publication bias can be avoided by adhering, in study design, to the philosophical foundations of homeopathy, i.e. by choosing a remedy according to the law of similars and the totality of symptoms – individualization of treatment.
 On the ethical plane, in the case of homeopathy, apart from the absence of drug toxicity and the possibility of avoiding vivisection for experimental purposes, even in the production of drugs from animal species, induction of death can be prevented or strongly circumscribed. 
 About effects on environment, allopathic drug waste causes pollution, alters the features of a given species, or modifies the balance between different species, while the employment of large quantities of natural active principles in drug industry has an impact on biodiversity. Homeopathic industry has no relevant effects on environment, because slag release is insignificant and the productive process is highly efficient. 
 Finally, homeopathy meets relevant economic issues: a) while management of crisis by states with a health system mainly oriented to allopathy imposes a heavy burden to community by reducing public funding of health care, the high sustainability of all holistic systems limits the risk of worsening health care level; b) homeopathy is less subject than allopathy to undeclared conflict of interest; the enormous margins of profit and the chance of competition issued by big allopathic industry have a limited role in classical homeopathy.

The aim of the article is to analyze the existing innovation strategies of Ukrainian enterprises and, on this basis, to identify their shortcomings and develop recommendations for improving and adapting innovative approaches to the international expansion of Ukrainian business during the wartime. It is substantiated that in the current conditions of wartime Ukraine, financial crisis, geopolitical pressure, lack of structural reforms, enterprises should not stop introducing innovative approaches to production processes, because this will negatively affect their international competitiveness and business expansion. On the contrary, the active production of advanced innovative products that meet the needs and requirements of consumers will be the basis for maintaining a stable position of enterprises in the market and will ensure their effective and stable functioning in the future. The negative consequences of the full-scale military invasion in relation to the implementation of business activities are determined, which include: reduction in the volume of business activities, in particular, a decrease in the number of operating enterprises; significant loss of income; reducing the number of orders, in particular due to migration processes, decrease in the competitiveness of the population, reduction of local and central budgets; overall cost reduction; reduction of wages; suspension of investments; increasing the turnover of labor resources due to migration processes and mobilization of the population; destruction of energy infrastructure, which led to the disruption of stable activities; loss of equipment and employees by enterprises located in the occupied territories and near the front line. On the example of specific companies, innovative strategies used by Ukrainian enterprises during the wartime for business expansion are analyzed, and the possibilities of their adaptation to terrible conditions, support of pre-war activities and the introduction of improved strategies that will contribute to the further development of companies and their entry into foreign markets in new realities, are considered. Using the matrix method, the potential opportunities and existing threats to Ukrainian enterprises are researched with the help of SWOT analysis, ways to improve their innovation strategies are proposed, by introducing which, Ukrainian enterprises will be able to adapt to the constantly changing business environment, strengthen competitiveness at the global level, enter new markets and optimize production processes in conditions of micro- and macroeconomic instability.

Europe is facing major developments, challenges, and opportunities that are affecting its cities and regions, either directly or indirectly. They include: grow - ing complexity (rise of new technologies, changes in production processes, the crisis of representative democracy, diversity, globalization of culture and the economy, rising costs of energy); the financial crisis and the subsequent economic crisis; persistently uneven development; the problems of fragmenta - tion; the aging population; and the increasing interest (at all scales, from local to global) in environmental issues (e.g. global warming) (Albrechts 2001, 2004, 2006). Moreover, this agenda is expanded by: the need for governments to adopt a more entrepreneurial style of planning in order to enhance regional, city region, and urban competitiveness; the growing aware ness that some planning concepts (i.e. learning regions, knowledge commun ities, industrial districts, compact cities, livable cities, creative cities, multicultural cities, fair cities) cannot be achieved solely through physical hard planning; and the fact that (in addition to traditional land use regulation, urban maintenance, pro - duction, and management of services) governments are being called upon to respond to new demands that imply the abandonment of bureaucratic approaches and the involvement of skills and resources that are external to the traditional administrative apparatus.