The aim of this paper is to develop a comprehensive analysis of the shock therapy model of transition. As such the model requires an analysis of what I define as the primary elements: economic analysis, definition of a good society, speed, political structure, ideological structure and initial...

In the fiscal reforms undertaken throughout the last decade, the dual income tax system, based on a broadened concept of income and progressive tax rates, has been implanted in several countries as an alternative model to traditional tax systems. The dual tax is characterised by combining a...

Fiscal policy tries to achieve its objectives by modifying the programmes of public revenues and public expenses elaborated by the policy maker. One of its objectives is to improve the situation of the economic agents, and one way to achieve it is increasing the activity of the firms, employment...

Traditionally, economists have been concerned over factors that improve economic growth, initially introducing physical capital and later human capital. We will consider a new factor, social capital. Also, we will introduce in this paper the effect of the fiscal policy on economic growth. In...

This article discusses the relationship between fiscal and monetary policies, considering different cases: government budget constraint and the wealth effect, determining the corresponding multipliers. The value of these multipliers will denote the effectiveness of fiscal policy. The article...

The impact of budget deficits on private investment is an unsettled issue. If budget deficits are to be financed by borrowing, interest rates must rise so that capital markets can reach equilibrium. High interest rates, in turn, result in a decreased investment, hence the crowding-out effect. On...

The increase of economic internationalisation has caused the increase of international direct inversions. This has caused an increase in international double tax problems. For this reason, states and organisations have developed mechanisms of tax coordination to elude the distortions in the...

Ten new countries joined the EU in 2004, and some of them will soon also join the euro. Since their incorporation to the single currency is subject to their fulfilment of the Maastricht criteria that current members already fulfilled in 1998, this paper describes and compares these fiscal...

The Third Phase of the European Economic and Monetary Union and the consequent implementation of the Unique Monetary Policy, advised EU countries to coordinate their fiscal policies, because of the relations between monetary and fiscal policies. The application of the Stability Pact has reduced...

The paper analyzes the relation between institutional quality, such as corruption, in a country and its monetary regime. It is shown that a credibly fixed exchange rate to a low inflation country, like a currency board, can reduce corruption and improve the fiscal system. A monetary union,...