How the old saying “when the United States sneezes, the world catches a cold†holds true has been the subject of many research papers on global and country group business cycle synchronization and divergence. Instead of business cycle linkages, however, this paper examines the...

Japan experienced a boom-and-bust cycle in the real estate and stock markets almost 20 years earlier than Europe. Since the bursting of the Japanese bubble economy, the country has fallen into a deep recession and has experimented with crisis therapies in the form of unconventional monetary...

This paper analyzes labor demand at the sector level in the U.S., Germany and Sweden in two ways: by providing new computations of the sector elasticity of labor demand, and by evaluating the employment effects of trade in manufactures, services, agriculture and fuel. The elasticity is computed...

The purpose of this paper is to study a fundamental cause of the economic crisis which suffers the current capitalism economy. The basic approach we adopt is as follows.Firstly, we show that the capitalism economy cannot largely deviate from the balance which is defined by natural economy. Our...

Stress testing has become an essential and very prominent tool in the analysis of financial sector stability and development of financial sector policy. Starting with 2010 stress test led by the Committee of European Banking Supervisors (CEBS), and reinforced by 2011 stress test and the bank...

Current financial crisis, branded as global, has severely affected economies of developed countries. Revenue drops, high deficits and debt forced actions taken in many countries to seek savings and changes of socio-economic structures. This paper concerns the issue of consequences of the...

In its strategy during the crisis Bulgaria opted for budgetary economies and the maintenance of a balanced budget in the name of fiscal stability and in order to keep the confidence of investors. The article discusses the justification of this line in fisc al policy against the background of the...

In this paper we are concerned with the simulation of non-optimal dynamic economies. The equilibrium laws of motion of these economies cannot be characterized by the methods of dynamic programming and may not be described by continuous policy functions. We prove existence of an invariant...

The dramatic decline in the actual output of the European economy is considered to be more than a cyclical discrepancy from the potential output. Both the level and the growth rate of the potential output show an unfavourable development. It is an important task of economic research to identify...

Controls on capital inflows have been experiencing a period akin to a renaissance since the beginning of the global financial crisis in 2008, with several prominent countries choosing to impose controls; e.g., Thailand, Korea, Peru, Indonesia, and Brazil. We focus on the case of Brazil, a...