Anti-crisis Policies Research Articles

Will small towns benefit? Expected COVID-19 pandemic-induced changes in supralocal relationships of Polish small towns and planned responses in the supralocal perspective of their local development strategic governance

The system transformation of the 1990s for the majority of Polish small towns (STs) meant deep, unfavourable changes in the supralocal conditions of their local development (LD). As a result, they were affected by many negative phenomena. The COVID-19 pandemic has started socio-economic changes, the current predominant assessment of which is negative. Nevertheless, for Polish STs, instead of short-term reworsening their supralocal situation, these changes may turn out to be beneficial in the longer term. The article presents the expectations and observations of authorities in the field of pandemic-induced changes in the relations between their STs and the supralocal environment, as well as the planned, strategic reactions. The results of the research allowed conclusion that the changes in question in combination with the planned reactions have a significant stimulating potential in terms of LD. The article ends with recommendations for the use of information contained in the post-pandemic strategic governance of STs, in creating anti-crisis policies of states and in teaching practice

ВЛИЯНИЕ КРИЗИСА НА ИННОВАЦИОННО-ТЕХНОЛОГИЧЕСКОЕ РАЗВИТИЕ: ПРОВАЛ, ПРОРЫВ, ВОЗМОЖНОСТЬ?

Article analyzes innovative and technological development during the economic crises with focus on possible disruptions. Despite negative conditions, large high-tech companies and smart small and medium enterprises avoid failures in their technological and innovative activities in order to sustain competitive positions. However, the study generally does not support the neoschumpeterian theoretical proposition that crises may stimulate technological disruptions. We identified only two exceptions. Firstly, disruption may occur as a result of exogenous shocks that changes basic market conditions (supported by the cases of Oil Shocks and green energy systems, and COVID-19 pandemic and internet technologies). Secondly, since 2000s national anti-crisis policies may play a larger role in development of emerging technologies (as a factor of overcoming economic downturns). Article identifies development of high-tech sector and national innovation system institutions as key factors for stabilization of innovative and technological activities and for rising probability of disruption in crises.

The evolution of macroeconomic indicators and the need to promote anti-crisis policies in the Republic of Moldova (Retrospective of events)

The evolution of macroeconomic indicators and the need to promote anti-crisis policies in the Republic of Moldova (Retrospective of events)

Напрями забезпечення стійкості економіки в умовах глобальної фінансової нестабільності

The financial instability of the world economic space and the accelerated changes in the structure of its socio-economic environment affect the development of national economies in conditions of shocks that cause economic losses, disrupt the parameters of the economic system and create the threat of financial and economic crises. In order to respond quickly to the emergence of shocks in the face of global financial instability, the article identifies key areas of resilience. On the example of anti-crisis policies of European countries such as Poland and Germany, it was determined that the key directions of ensuring the resilience of their economies were investment privileges and attractive credit conditions.Poland’s attractive investment climate has ensured a stable growth of its economy after the 2008-2009 crisis. The GDP per capita GDP growth rate in 2008-2017 was 37.48%.The introduction of an attractive lending system in Germany has ensured a rapid post-crisis economic recovery. The GDP per capita growth rate of Germany in 2008-2017 was 25.01%. For Ukraine, during the period of the financial and economic crisis of 2008-2009 and the crisis that began in 2014, credit was used to support financial stability. Against the backdrop of falling foreign exchange reserves, devaluation of the national currency, Ukraine was motivated to cooperate with the IMF. For the period from 2008 to 2018, Ukraine was allocated under the IMF lending programs - $ 66 billion, but in fact, $ 27 billion was transferred due to Ukraine’s failure to fulfill its obligations. The GDP per capita growth rate of Ukraine in 2008-2017 was 3.12%. IMF financial assistance is one of the key areas for resilience of economy, as it involves systemic socio-economic reforms. Effective implementation of reforms will ensure economic growth and return investors’ interest in the Ukrainian economy.

Informatization of society and public economic security administration

Purpose. The aim of the article is description of the interdependencies of the development of informatization of society and the improvement of public administration in overcoming the economic threats to the existence of the state of Ukraine. Methodology of research. Achieving this goal is based on the use of the research methodology of the innovative and informational type of economic development and public (state) management. The following specific methods are used: systematic – to disclose the directions of the influence of information transformation on all spheres of the functioning of society; ecumenical (interdisciplinary) – to disclose institutional changes in public administration due to new threats to territorial integrity and economic security; analysis – to characterize the trends in the application of information technology in economics and management; statistical methods – to assess the magnitude of economic threats to the functioning of society and the substantiation of anti-crisis measures by the state. Findings. It is established that the study of the interaction between informatization of society and new public administration for the purpose of localization of economic threats to statehood necessarily implies the use of systematic analysis, ecumenical (interdisciplinary) approach, theories of institutional changes and systemic crisis of civilization. The principles of the mechanism of interaction “informatization of society – new public administration – guarantees of national economic security” are substantiated, based on the following logic: the fundamental instinct of self-preservation of the person leads them to unification in the state as the highest and long-lasting social, legal, political and economic forms of joint activity of people; and the state, first and foremost protecting the interests of the people who shape the public interest as a whole, is obliged to protect them as national in the international arena, including national economic security. It is proved that the rapid development of information transformation and new innovative products in the economy undermines the hierarchy of relationships, contributes to the active expansion of network structures that radically change human values, the format of interaction of citizens (consumers) with business and the state, puts new requirements for the game from the state. It is revealed that the new public administration is characterized by productivity, marketing approach to studying the needs of citizens and threats to their lives; decentralization; reporting on the results that is possible under the conditions of introduction of electronic governance and changes in the legislative field. It is substantiated that strategic goals of implementation of electronic government are overcoming information inequality, restructuring of relations with citizens, improvement of technology of public management and administration in order to ensure transparency, accessibility and convenience of receiving public services by citizens, which opens the possibility of their real participation in making public management decisions in order to localize corruption, shadowing, raiding as factors of economic threats to statehood. Originality. The scientific novelty of the study is to substantiate the author’s approach to the dialectics of the interaction of “informatization of society – the new public administration – national economic security” in the context of continuous information transformation, institutional changes and global challenges. Practical value. The theoretical approaches developed by the authors to the analysis of the influence of informatization of society, new public administration and national economic security can become the fundamental basis for the development of anti-crisis policies in Ukraine with the aim of ensuring territorial integrity, the safety of citizens and their well-being. Key words: informatization of society; new public administration; economic security; state sovereignty; openness; transparency; electronic governance.

Съвременни предизвикателства пред антикризисното регулиране в икономиката

The present article states that the development and implementation of effective anti-crisis policies on a global scale will make it possible, if not to avoid future financial crises entirely, than to at least make them predictable and manageable. Therefore, as a first step, national governments and international structures must learn the maximum lesson from the current crisis so that in the future anticrisis policy measures may become more effective and targeted. On a global scale, it is necessary to develop effective mechanisms which will ensure an optimal balance between the real and financial sectors, promote the accelerated development of the world economy and protect it from various kinds of economic shocks.

Crisis, Ideology, and Interventionist Policy Ratchets

Proper government reaction to economic crisis has long been a central element of public policy debate and is experiencing a revival after the Great Recession of 2008. Previous studies argue on theoretical and empirical grounds that crises may lead to more interventionist policies, but also cause deregulation and liberalization. This article claims that policy responses will partly depend on the core economic ideology of government, causing ideologically heterogeneous post-crisis strategies. Employing a panel of 69 countries for which salient ideology measures can be constructed, we find that growth crises between 1975 and 2015 caused larger increases in government size and regulatory policy when countries have left-wing governments. We also find some evidence of policy ratchets, meaning that certain crisis policies present a tendency to become permanent, regardless of the ideology of successive governments in power. Rolling back the public sector in size and scope seems to be possible, but our results show that, on average, it does not clearly occur as an ideologically driven reaction to anti-crisis policies.

The Controversies of Modern Macroeconomic Theory in the Context of the Global Economic Crisis

Abstract The aim of this paper is to analyze controversies of modern macroeconomic theories in the period of the global economic crisis. Ideas, disagreement and similarities between the most important theories in relation to state intervention and anti-crisis economic policy are presented. The topical research has found a connection between the roots of the global economic crisis and the paradigm of new liberal theories. The crisis has confirmed that the idea of self-regulation in the private sector is untenable in practice. In times of crisis, the leading theoretical framework in economic policy is reexamined. Rules-based monetary and fiscal policies are replaced by discretionary decision-making. In the world economies affected by the crisis, anti-Keynesian cyclical measures of monetary and fiscal policies were implemented. A comprehensive and unequivocal reaffirmation of Keynesianism in anti-crisis policies has confirmed the assumption of the circularity of economic theories. Central banks quickly reduced their key interest rates and increased their money supply. Fiscal authorities implemented expansive stimulus programs. When creating a new macroeconomic paradigm, market imperfection must be taken into account as well as a limited range of government economic policies.

Дослідження механізмів антикризової політики федеральної резервної системи США та європейського центрального банку в період 2007-2009 років: практичні імплікації для сучасної Україні

Розглянуто механізми регулювання банківських систем Європейського Союзу та Сполучних Штатів Америки в умовах фінансово-економічної кризи 2007 - 2009 рр. Проаналізовано принципи антикризової монетарної політики, що використовувалися Федеральною резервною системою США та Європейським центральним банком у період глобальної рецесії. Детально досліджено інструментарій політики «кредитного пом’якшення», застосований у США та ЄС. Наголошено на тому, що антикризова політика ЄЦБ та ФРС була якісно змінена із настанням другого етапу кризи, особливо щодо становлення низьких відсоткових ставок. Підкреслено особливості застосування механізмів операцій на відкритому ринку, дисконтного кредитування та зміни банківських резервів в аспекті стимулювання економіки під час кризових періодів. Зроблено акцент на причинах виникнення світової фінансово-економічної кризи та відповідними інструментами антикризового управління, застосованих у Сполучених Штатах Америки та Європейському Союзі. Досліджено перспективи застосування політики «кредитного пом’якшення» задля забезпечення стабілізації банківської системи сучасної України. Зроблено висновок щодо недоцільності застосування стратегії кількісного пом’якшення в умовах сучасної української фінансової системи.

ЈАЧАЊЕ РЕГУЛАТОРНОГ ОКВИРА У ФУНКЦИЈИ ФИНАНСИЈСКЕ СТАБИЛНОСТИ И СПРЕЧАВАЊА ВЕЛИКИХ БАНКАРСКИХ СКАНДАЛА

Numerous big banking scandals in the period from 1980 to the collapse of financial markets in the US in September 2008 indicate that the Global economic crisis was inevitable. This is because the basic causes of the crisis are built into the foundations of the US neoliberal model of speculative financial capitalism. The previous anti-crisis policies in the United States, which decisively shape global regulation as well, have not yielded the desired results because the ruling political, economic and military elite of the US is not ready to adopt and implement fundamental social and economic reforms. For this reason, the big banking scandals which marked the past five-year period (2010 - 2015) are not a big surprise. Bailed out by taxpayers' money, global banks continue to behave in the same way they behaved until the collapse of financial markets in September 2008, which brought the whole world to a crisis of unprecedented proportions. New big banking scandals imply a new wave of crisis with incalculable economic and social consequences of global proportions. In this regard, the main objective of this paper is to point to the necessity of global, regional and national institutions to redesign the existing and build a comprehensive and effective regulatory and supervisory framework, in order to prevent the deepening of the crisis so that the third decade of the 21st century can be entered with a stable, socially responsible and sustainable banking system.

Investigation of the external experience of anti-crisis policy on the control of financial security of the banking system

The object of research is the processes of shaping the anti-crisis policy of the developed countries of the world and Ukraine in the context of implementing measures to improve the level of financial security of the banking system. One of the most problematic places in this research is that the experience of foreign countries when implementing it will not always be effective for Ukraine. It depends on the specifics of the economy, politics, mentality of each nation and the like. Therefore, in the study of this object, and especially in the implementation and development of vectors of Ukraine's anti-crisis policy, methods of general scientific cognition, of empirical and comparative analysis, of synthesis and generalization, of the conceptual foundations of support were used. To solve the problematic places, the specifics of the states to ensure the high level of financial security of the domestic banking system were taken into account. The study also took into account complex military-political and economic realities, as well as the need to review the basic approaches to the management of the financial security of the banking system. One of the main guidelines for building an anti-crisis policy and the concept of managing the financial security of the banking system was the experience of the anti-crisis policies of the developed countries of the world during the Great Depression and the global financial and economic crisis of 2008–2009.The main vectors of the anti-crisis policy are formulated on the basis of research, namely:legislative (aimed at reducing the threats to the functioning of foreign state banks for the financial security of the banking system of Ukraine);infrastructural (aimed at creating new elements of the banking infrastructure, such as a bank of «toxic» assets, development banks, which will increase the financial stability of all banks in the country);monetary (aimed at optimizing monetary policy in terms of ensuring financial, price and currency stability);fiscal (focuses on creating a positive business environment and minimizing macroeconomic threats to the financial security of the banking system). This is due to the fact that the proposed vectors constitute a harmonious and effective combination of the solution of the issue of overcoming the crisis and ensuring the financial security of the banking system in Ukraine.

Economic Recovery and Inflation

In the last decade, advanced economies, including the euro area, experienced deflationary pressures caused by the global financial crisis of 2007-2009 and the anti-crisis policies that followed—in particular, the new financial regulations (which led to a deep decline in the money multiplier). However, there are numerous signs in both the real and financial spheres that these pressures are disappearing. The largest advanced economies are growing up to their potential, unemployment is systematically decreasing, the financial sector is more eager to lend, and its clients—to borrow. Rapidly growing asset prices signal the possibility of similar developments in other segments of the economy. In this new macroeconomic environment, central banks should cease unconventional monetary policies and prepare themselves to head off potential inflationary pressures.

Cyclo-coherent Approaches to the Management of Bifurcation States of Aggregate Economic Systems in the World Economy in the Conditions of Nonlinear Cyclic Dynamics

Purpose: the main goal of the article is to study the possibilities of increasing the sustainability of world economic development to the crisis fluctuations of national economies and their aggregated groups under conditions when the fluctuations induced in the global crisis by the global crisis manifest coherence features. Methods: the analysis of coherent interaction processes of a set of discrete macroeconomic cycles is performed to compare the individual data of managed economic systems with the possibilities of regulating the degree of coherence of fluctuations of key processes in the national economy. Results: the necessity of transition from consideration of a separate macroeconomic cycle as a discrete process to a coherent-resonant multicyclic paradigm of economic development under which chaotic crisis phenomena are represented as external manifestations of macroeconomic nonlinear synchronization of quasiharmonic oscillations within the framework of cyclic dynamics of various processes of economic development is substantiated. Stabilization in these conditions is achieved by forming optimal values of the package of investments that form the regions of stabilization synchronization in the economy through the damping of the amplitude of destructive cycles and the creation of conditions for their asymmetry, depending on the intensity of crisis fluctuations. The necessity of establishing procedures for the international coordination of the anti-crisis policies of individual states within the framework of international clusters is substantiated using the coherent resonance model arising from the synchronization of cyclical and acyclic crisis fluctuations. Conclusions and Relevance: the influence of the dynamic properties of a multicyclic system on the behavior of its local elements (cycle synchronization, cyclic and acyclic dynamics, etc.) with respect to the dynamics of compound evolutionary (including degrading) subsystems determines the probability of transitions between stationary states of the system as a result of iterative successive losses Sustainability of economic development, etc. As a result, it is possible to maintain the sustainability of economic development at various levels of governance in the world economy. The considered administrative technology is proposed as an integral part of technologies for managing economic systems as subsystems of the world economy.

Currency crises in post-Soviet economies — a never ending story?

Since the collapse of the Soviet Union, its successor states have suffered from cyclical currency crises. The most recent episode of 2014–2016 was caused by a combination of external and domestic factors. The former include tighter US monetary policy, slower global growth, and declining commodity prices, whereas the latter include the former Soviet Union (FSU) economies’ extreme macroeconomic fragility (a legacy of past crises), numerous microeconomic rigidities and structural distortions in addition to governmental deficits. In addition, the Russian–Ukraine conflict dealt a heavy blow to both economies and their neighbors. Effective anti-crisis policies must aim at eliminating all deep-rooted causes of repeated financial and macroeconomic turbulence and must involve deep structural and institutional reforms in the entire region.

The Political Consequences of National Crisis Management: Micro-Level Evidence from German Voters During the 2008/9 Global Economic Crisis

How does national crisis management affect the electoral fortunes of coalition governments? Drawing on micro-level data from just before the 2009 federal elections in Germany, this article investigates how voters' evaluation of specific policies against the global financial crisis affected approval of and voting intentions for the then-governing grand coalition. We find that voters in favour of the two most prominent anti-crisis policies, the car-scrap bonus and the public guarantee for banks, were more likely to approve of and to vote for the two incumbent parties. These evaluations of specific policies influenced individuals' vote choice in addition to their assessments of the economic situation more generally and in addition to party identification. This suggests that even in the greatest economic turmoil with blurred political responsibilities, government parties can win or lose voters through the implementation of specific economic policies.

The Political Consequences of National Crisis Management: Micro-Level Evidence from German Voters during the 2008/09 Global Economic Crisis

How does national crisis management affect the electoral fortunes of coalition governments? Drawing on micro-level data from just before the 2009 federal elections in Germany, this article investigates how voters' evaluation of specific policies against the global financial crisis affected approval of and voting intentions for the then-governing grand coalition. We find that voters in favour of the two most prominent anti-crisis policies, the car-scrap bonus and the public guarantee for banks, were more likely to approve of and to vote for the two incumbent parties. These evaluations of specific policies influenced individuals' vote choice in addition to their assessments of the economic situation more generally and in addition to party identification. This suggests that even in the greatest economic turmoil with blurred political responsibilities, government parties can win or lose voters through the implementation of specific economic policies.

Akkumulation reloaded

Since the beginning of the financial crisis central banks are flooding the markets with money. Despite the wide use of unconventional monetary measures economic activity has not improved, esp. in the EU and signs of a worldwide recession are lurking. While the economic stimulus by monetary policy has been flawed by counteracting tendencies in the real economy (low profitability, private indebtedness) the measures taken had negative distributive consequences and might lead to an increase in inequality. Together with austerity measures by the state and its role as an insurance provider for capital anti-crisis policies have strengthened the position of wealthy income classes at the expense of low income classes.

A Marxist Interpretation of the Current Crisis

This article proposes a Marxist interpretation of the current crisis of capital, mobilizing in particular Marx's concept of fictitious capital. It analyses the origins, manifestations, and effects of the crisis, and presents a critique of the orthodox anti-crisis policies, as well as of the recent so-called return to “Keynesianism.” According to the author, there is a very high probability that the present crisis will become more acute as a systemic crisis of capital, since all the conditions are there for that to happen. This will force us to reconsider the alternatives of post-capitalist social transformation, which more and more of us, in spite of our differences, hope to be socialist.

Are we all austerians now? An analysis of national parliamentary parties' positioning on anti-crisis measures in the eurozone

ABSTRACTWhich factors account for positioning of national parliamentary parties on anti-crisis measures implemented in the bailout states of the eurozone? The literature suggests that parties representing the economic ‘left’ are more likely to advocate Keynesian measures, whereas parties representing the economic ‘right’ tend to support the neoliberal ones. However, the current political discourse suggests that the choice of anti-crisis policies rather reflects the conflict of interests between euro states that received a bailout (debtors) and those who only provided financial guarantees (creditors). The empirical findings, based on (1) discourse analysis of national parliamentary debates and (2) the qualitative comparative analysis (QCA) model (crisp set), demonstrate that – next to the economic stance of a party – receipt of a bailout also accounts for parliamentary parties' positioning on anti-crisis measures. In particular, parliamentary parties in debtor states are likely to opt for Keynesian anti-crisis measures despite their right-wing economic stance or membership in the government.

Gender Dimensions of the Global Economic and Financial Crisis in Central America and the Dominican Republic

This contribution analyzes the gender impact of the 2008 global economic crisis in Central America and the Dominican Republic, with special emphasis on work and employment. It also assesses the policies adopted by the region's governments to promote economic recovery from a gender-equity perspective. The study explores the relationship between the situation of women and economic crises in specific economic and social contexts. A principal finding of the study highlights that policies implemented to combat the crisis have not been able to reduce gender inequality. The evolution of principal indicators and the lack of attention to gender equality in anti-crisis policies suggest that these inequalities could worsen as a result of the crisis. Continued research and monitoring of indicators, including changes in practices and customs, will contribute to more robust conclusions.