Economic Policy Options Research Articles

The Banking System during Crisis Times, A Global Perspective

The study aims to highlight the impact of multiple crises on developments and changes in banking systems at the global level. As banking represents the most important channel for capital allocation, globally, the topic impacts policies as well as economies. The paper presents the linkages and developments between the dependent variable credit interest rate and macroeconomic indicators used as dependent variables: unemployment, inflation, capital adequacy ratio and bank assets to GDP. The data were collected and analyzed for a relevant period, between 2013 and 2021, representing the post-financial global crisis and pandemic crisis. The sample includes 30 countries with a combined GDP of around 60% of the global GDP. According to the research results, a balanced relationship between competitiveness, profitability, and sustainability within the financial and banking sectors can be achieved through cooperation between all 30 analyzed countries. Other relevant concerns to develop viable economic policy options should focus primarily on keeping inflation rates at a stable level by the central banks, together with the efficient allocation of funds, diversification of sources of energy, and reducing dependencies.

Wege aus der Wachstumsschwäche

Abstract Germany is experiencing a significant decline in potential output. The main reason is demographic aging and, in particular, the retirement of the baby boomers. The available labour volume is also being exacerbated by low employment rates among older workers and a decline in average working hours. In order to overcome weak growth, it is key to strengthen the economy’s potential output through technological progress and the efficient allocation of resources. This article analyses the development of potential output growth, quantifies possible contributions to overcoming weak growth and concludes by outlining economic policy options. We discuss two areas that are important for strengthening potential growth: mitigating the consequences of demographic aging and increasing investment and innovation. Mitigating the aging effects requires measures to increase labour market participation and the substitution of labour with capital goods where possible. The latter helps to ensure that more workers become available in areas where substitution through automation is more difficult. Increasing investment and innovation is crucial in order to increase productivity, modernise and expand the capital stock and open up new growth areas.

Exploring the causal relationship between PM 2.5 air pollution and urban areas economic welfare and social‐wellbeing: Evidence form 15 European capitals

AbstractThis paper aims to investigate the relationship between air pollution (PM2.5) and a collection of features related to urban areas economic welfare and social‐wellbeing based on data collected from a number of 15 European capitals, for a seven years' period (2010–2017). The empirical analysis describes the correlation between the particulate pollution and welfare features in selected urban areas. Moreover, the PM2.5 pollutions may affect the economic and social development of these areas as, both entrepreneurs and population are inclined to relocate for a healthier environment. The models emphasize aspects related to the impact of PM 2.5 on different dimensions as follows: real estate rent values and land prices, restaurants food prices, community economic development, human welfare, as well as urban traffic. From the various correlations we have also discovered that for the urban areas included in the research, at early stages urbanization has the highest impact on air pollution. The findings of this study may offer hints for decision makers for their social and economic policy options. A clean urban environment will attract more skilled employees seeking for economic, social and environmental wellbeing. If the urban agglomerations authorities will fail to mitigate properly the air pollution issues the wellbeing will decrease along with the willingness of urban population to stay in such areas.

Greening recovery – Overcoming policy incoherence for sustainability transformations

AbstractPolicy coherence is crucial in the 2030 Agenda's transformative ambitions and heralded as of paramount importance to ensure the successful implementation of the 17 Sustainable Development Goals and climate policy targets. Despite political efforts to achieve policy coherence, apparent trade‐offs and goal conflicts have emerged – even in a proclaimed ‘front‐runner’ country like Sweden. This paper examines the role of ideas in proposing and legitimising policy options and achieving policy coherence in the light of the Swedish recovery debate in 2020 following the COVID‐19 pandemic. Ideas of a green economic recovery put forward in the public debate are examined through thematic text and frame analysis. We show that ideas of a green transition, boosted by economic recovery spending, draw on a synergistic frame in combining social, environmental, and economic policy options, carrying a potential for coherency. However, the absence of a discussion on power, as in who stands to gain what under which circumstances, coupled with an inherent understanding of a temporal hierarchy of policy priorities does not only impact the ability to design coherent policies but may have considerable impacts on the prospects of achieving sustainability transformations.

Regional energy and carbon emissions concerns: Towards cleaner energy transition in Middle East and North Africa

Energy efficiency plays a crucial role in enabling a cleaner and more affordable energy transition in the Middle East and North Africa (MENA) region and worldwide. This paper focuses on investigating how MENA countries can attain cleaner and affordable energy through economic policy options. The study employs sustainable development goals variables and applies production and ridge regression analysis techniques to model the relationship. The findings reveal the presence of strong link between energy and economic growth in the MENA region. Additionally, the study highlights perfect elasticity substitution technology between capital-energy and energy-labor in MENA countries. The insights suggest that policymakers should use policy substitution technique in production factors including substituting hydrocarbons with renewable energy towards cleaner energy transition. In energy efficiency and carbon targeting, the study unveils that the energy efficiency outlook in the MENA region is low with worsen carbon efficiency indicator. This indicates that MENA countries have surpassed their carbon frontier targets and need to reduce their carbon emissions by 2030. In conclusion, the authors highlight that achieving cleaner and affordable energy transition with climate action presents multifaceted policy choices for developing countries. To address those challenges, the study recommends the removal of energy subsidies, particularly in fossil fuels in countries like Iran and Saudi Arabia. Moreover, policymakers may leverage current energy technologies such as blockchain and the Internet of Things to enhance energy efficiency to reduce carbon intensity in the MENA region.

China's economic growth and macroeconomic policy options during the COVID-19 pandemic

China's economic growth and macroeconomic policy options during the COVID-19 pandemic

SPECIFIC FEATURES OF REGULATING THE FОRECASTING SYSTEM FOR THE SOCIO-ECONОMIC DEVELОPMENT IN RUSSIA

The system of forecasting and planning the economy is being formed today in the Russian Federation. The outcome of this process is expected to be the formation of a system of priorities and goals of the socio-economic development of the country, the development and implementation of national projects and government programs. The paper gives an analysis of the theoretical and methodological aspects concerning the regulatiоn of the forecasting system of the socio-economic development in Russia. The principles of regulating the forecasting of the socio-economic development in the Russian Federation have been studied and proposals have been developed to improve the process under study. The conclusions have been drawn that forecasting is one of the important functiоns of public administration. Forecasting contributes to the identification of possible future problems of socio-economic development, substantiation and development of preventive measures of socio-economic policy, which ensures early structural, technological, institutional changes, and also gives an opportunity to adapt effectively to the specific conditions of the future situation. Forecasting also makes it possible to obtain the expected assessments of the results of the implementation of various economic policy options. Thus, forecasting allows one to pick a pоlicy option objectively that provides the desired trajectory of socio-economic development.

International Migration, Remittances and COVID-19: Economic Implications and Policy Options for South Asia

ABSTRACT COVID-19 has disrupted the flow of international remittance that many South Asian economies depend upon. This ‘remittance shock’ is likely to catalyse a downturn in foreign exchange earnings, worsen structural unemployment and threaten the welfare of millions of low-income families. We situate the pandemic as an unprecedented challenge to the migration-development nexus in South Asia and examine the economic implications for three remittance economies: India, Nepal and Sri Lanka. We evaluate those countries’ existing responses to the crisis and discuss policy alternatives, highlighting the need to recalibrate development strategies by reducing reliance on migration and remittances.

Chinas economic growth and macroeconomic policy options during the COVID-19 pandemic

Chinas economic growth and macroeconomic policy options during the COVID-19 pandemic

COVID-19 and Economic Policy Options: What Should the Government do?

The Coronavirus disease (COVID-19) continues to grow rapidly from day to day in every part of the world and it is uncertain when this pandemic will decline. The world economy is experiencing a hard blow from COVID-19 both directly and indirectly, which is reflected in the many industrial sectors of many countries that have struggled to recover. This paper tries to map the economic impacts that are generally experienced by countries in the world affected by the pandemic, then formulates some recommendations related to the government's response in dealing with the COVID-19 pandemic as an option in effort to minimize wider economic impacts. This paper can contribute to policymakers in every government in the world and provide action options in dealing with the shock of the COVID-19 pandemic.

Wpływ międzynarodowych instytucji finansowych na sytuację gospodarczą krajów najsłabiej rozwiniętych

Celem opracowania było ukazanie wpływu działalności Międzynarodowego Funduszu Walutowego i Banku Światowego na sytuację ekonomiczną najsłabiej rozwiniętych krajów Afryki subsaharyjskiej. Stwierdzono, że działanie tych organizacji zgodnie z zasadami konsensusu waszyngtońskiego nie przyniosły oczekiwanych rezultatów, a pomoc kredytowa MFW i BŚ zwiększyła zadłużenie i nie przyczyniła się do wyraźnego wzrostu PKB per capita w analizowanych krajach. Dlatego też konieczna stała się zmiana reguł działania międzynarodowych instytucji finansowych wobec krajów najsłabiej rozwiniętych. Proponowane programy dostosowawcze mają generować wzrost gospodarczy, który będzie podporządkowany potrzebom społeczeństw, a wybór wariantów polityki ekonomiczno-społecznej powinien być dostosowany do warunków określonego kraju.

The Export Potential of the Russian Economy: Targets and State Policy Requirements

The feasibility of the state-posed task of export expansion is assessed. An increase in noncommodity nonenergy exports is considered in terms of calculation methodology, price factors, demand, supply, and the available transportation infrastructure. It has been established that the cost indicator of exports limits economic policy options and strengthens dependences between its components. It is necessary to change the makeup of industrial development in the next two-to-three years.

ОЦЕНКА ВЛИЯНИЯ ЖЕЛЕЗНОДОРОЖНОГО ТРАНСПОРТА СИБИРИ В СТРАТЕГИИ ДАЛЬНЕВОСТОЧНОГО ВЕКТОРА РАЗВИТИЯ ЭКОНОМИКИ СТРАНЫ

The paper presents the results of calculations based on inter-sectoral interregional tools to assess the impact of rail transport in the Siberian regions in the implementation of the Eastern development strategy. With the increasing connectivity of the districts, this policy has an impact on both neighboring and remote areas from the Far East. In General, the calculations show a comprehensive assessment of large-scale economic policy options while ensuring systemic conditions. The instrumental base allows to give quantitative values of consequences of change of options of economic policy with indication of branches and areas and on time period dynamics.

BUDGETARY EXPENDITURES ON AGRICULTURE, AGRICULTURAL MA RKETS, RURAL DEVELOPMENT AND ASI F IN THE CONDITIONS OF CHANGING OPTIONS IN POLAND'S ECONOMIC POLICY

The aim of the article was to indicate expenditure on ASI F in relation to changes that took place in the agricultural budget of Poland after 2016, under the influence of the new option in the national economic policy, as well as the long term position of ASI F. As a first step, the theoretical reasons and impact of the change in economic policy options were discussed, followed by an analysis of the level and share of agricultural sector expenditure in the total budget and in GDP , in order to focus in turn more closely on social issues related to the agricultural sector through the prism of ASI F spending. It was pointed out that the share of budget expenditure on ASI F in the total budget expenditure of the state in the long run is gradually decreasing. Nevertheless, it is observed that the level of budget expenditure on ASI F is stabilizing at a level close to PLN 18 billion per year in nominal terms, while the need to maintain the existing services, both in terms of level and scale, remains undisputed.

Latin America: Limits to Alternative Economic Policies

From 2003 to 2008, Latin America had a remarkable period of growth with few precedents in its economic history. This corresponds to the strengthening of economic policy options far from those advocated by the International Monetary Fund, World Bank, or the Washington Consensus agenda. With the exception of Venezuela, the international financial crisis and the great recession did not significantly affect economic growth. In the following years and until the end of 2011 and the beginning of 2012, GDP continued growing. From this moment forward, there was a change in economic growth tendencies and in some countries even strong recessions. The literature has argued that the change was the result of a rapid and significant drop in the international prices of raw materials, all relevant component of these countries’ exports. This article argues that there are other macroeconomic data that also explain the change in the dynamics in the some LA economies. Structural reforms and economic policies implemented since the 1980s through the early years of the last decade had effects that transformed economies and economic power relations. The changes carried out by governments, which were promoting an alternative economic policy in the region, were not able to advance sufficiently in the creation of new institutions. At the same time, they could not modify economic power relations to the point of creating significant increases in the rate of investment and the expansion of internal productive chains within the industrial base to give continuity to the process of economic development.

Old and New Criteria for the Governance of Political and Economic Structures on the Basis of the Bible and the Quran

Abstract This study presents a sociological analysis of the Holy Books of two world religions (the Bible and the Quran) since, according to prognoses and risk analyses, a political, economic, cultural, and religious confrontation between the world religions will be unavoidable. Special economic and political aspects also contribute to the up-to-datedness of the topic in the democratic world; in fact: the economic crisis at the beginning of the 21st century, the difficulties of managing the crisis with traditional micro- and macroeconomic tools as well as the Europe-wide issue of migration processes. These challenges have directed our attention to alternative economic solutions and policy options, including theories on ethical basis. Modern academic discourse has recently started to direct research at leadership skills as acknowledged forms of talent. The priority of moral talent is never disputed in the Bible and the Quran, more so by certain leaders holding political or economic positions.

Теоретические аспекты формирования государственной экономической политики России на современном этапе развития

Introduction. Formulating an economic policy has always been at the focus of attention of the state authorities; however, it can be argued that in modern reality, characterized by the presence of turbulent processes, this issue has acquired a special importance. Application of the economic response strategy does not seem possible without understanding the basics of economic policy and its causality; therefore, there is a need in understanding the theoretical aspects that can be used as the basis for formulating a state economic policy in the context of the current conditions of the Russian economy. Aims. Aim is to study specific features of Russia’s economic policy, functioning in an unstable macroeconomic environment, in the context of theoretical propositions of economic studies. Methods: theoretical research, system analysis, deductive-inductive method.Results. Measures to restructure the economy and overcome its crisis in the countries of transition economies have been systematized. Identified are the fundamental recommendations, the transplantation of which would be appropriate for the Russian economy with regard to its mental characteristics and the specificity of development. Costs and benefits offered by the development of machine-building sector in the structure of the national economy have been estimated. The problem areas in human resources, science and technology development that hinder innovation activity in the economic environment have been considered.Conclusion. The analysis was made of the features of economic regulation, on the one hand, stemming from the conceptual continuity of principles and axioms of different scientific schools and trends. On the other hand, these features appear as a response to the exogenous factors influencing the economic environment. Taking into account the existing economic theories, the study suggests the economic policy options, based on recommendations and mechanisms for achieving the welfare state the importance of which had been historically proved, as well as outlines the opportunities offered by the current economic environment.

Identyfikacja opcji polityki gospodarczej i ich związku z inflacją i bezrobociem

Economic system after 1990 had many fluctuations. This article applies to two essential phenomena in a free market economy: inflation and unemployment. This article applies to changes in the process of inflation and fluctuations in the unemployment rate under different economic policy options. Economic policies can affect the development of the inflation and unemployment. It includes interest rates and budget deficits. Methodology of model is based on a pendulum. Economic policy has been designated as a synthetic indicator of the resultant two policies - monetary and fiscal policies. With the help of the pendulum model has been established that the character had run monetary and fiscal policy, and how developed as economic policy. By the dominance of one of the policy options is understood that during cycles level inflation or the deficit fluctuated strongly to economic stabilization. One of the stages of the study was to analyze the monetary policy and assess whether there is a link between the evolution of interest rates and the evolution of the inflation rate. In a similar way, fiscal policy was analyzed. This article attempts to determine whether the conduct of economic policy was correct, and has had an impact on the economic situation.

Preparing for the future: science and technology in Australia

In common with other developed countries, Australia is confronted by problems and opportunities associated with the introduction of new technology. Australia has a relatively poor R&D performance by its manufacturing sector, with business enterprises accounting for an estimated 32% of the national R&D effort in 1984–5. Relatively little applied research and experimental development is conducted in Australia. Since the present Australian government came to office in 1983 science and technology have been increasingly seen as integral to any strategy for revitalizing and restructuring Australian industry. A goal has been to develop entrepreneurial skills and create industries which are export oriented, internationally competitive, and innovative. Taxation concessions ark now being used to help lift the country's private sector R&D performance and establish a stronger venture capital market. If Australia is to prepare successfully for the future it must consider social impacts as well as economic benefits when planning for the introduction of new technology. A Commission for the Future has been created to help stimulate discussion and debate on the social and economic policy options available to Australian decision makers and the community at large.

Special issue: Selected papers of the WWWforEurope conference on modelling growth and socio-ecological transition, Vienna, 2013

In the aftermath of the Great Recession, long-run issues about planetary boundaries, progressing environmental degradation, emerging inequality and poverty have been partly displaced by short-run issues as, for example, income losses, unemployment and social problems. From a European policy perspective these issues need to be considered simultaneously. This was the main topic of the conference ‘‘Modelling Growth and Socio-Ecological transition’’ organised within the 7th Framework Programme project ‘‘WWWforEurope’’. So far, the majority of current growth models focus on traditional growth drivers (e.g. total factor productivity), incorporating environmental boundaries only on an aggregate level in a simple specification. They do not take into account that the (growing) economic system cannot be considered separately, but is embedded in a social system that is part of an environmental system itself. In order to tackle the challenges mentioned above and to move towards a more economically dynamic, socially inclusive and environmentally sustainable European society/economy a socio-ecological transition is needed. The availability of models incorporating social and environmental dimensions is an important prerequisite to objectively and realistically evaluate potential consequences of such a transition. Particularly, the intended but also non-intended economic, social and environmental effects of different economic instruments and policy options related to a socio-ecological transition need to be identified. On March 12th and 13th, 2013, the Austrian Institute of Economic Research (WIFO) addressed this important topic at a Conference on ‘‘Modelling Growth and Socio-ecological transition’’ in Vienna, where the participants presented, compared and discussed existing and yet to be developed economic models that also consider