Back to the Market: The Debt Problem in Legal Perspective

This article argues that the debt problem can be attributed to the failure on the part of those who operated the huge market of recycled petro-dollars in the late 70s and early 80s. The author then discusses how reinforcement of a decentralized decision-making system depends on three factors; transparency, market entry, and confining state regulation

FAKTOR-FAKTOR YANG BERPENGARUH TERHADAP PRAKTIK MANAJEMEN LABAPADA PERUSAHAAN YANG TERGABUNG DALAM EMITENLQ-45 DI BURSA EFEK INDONESIA TAHUN 2010-2013

This study aims to determine the factors that influence the decision of management to suppress earnings management , so that the company has good financial statements . This study uses a quantitative approach to current ratio , total asset turnover , the dividend payout ratio , return on assets and debt to Equity Ratio in management decision making profit . The results showed that the current ratio, total asset turnover , the dividend payout ratio , return on assets and debt to equity Ratiosecara together to make decisions affecting the management of earnings management in decision making profit management

Individual choices? Complex attitudes to debt and its continuing influence on HE participation decisions

This paper explores why a group of young adults with level 3 qualifications, living within traditionally working-class communities, choose not to participate in HE and the influence that finance has on such decisions. There has been a great deal written about debt and debt aversion and the question of whether debt plays an important role in individuals’ choices when deciding whether to attend university. There appears to be equivocal evidence of the impact of debt on HE participation decisions. The costs of participation and financial concerns have been considered by many researchers including Callender (2003) and Watts (2006). This paper discusses how a general fear of debt, in conjunction with an expectation that the costs associated with HE participation should lead to a guaranteed job, influences decision making. It indicates complex attitudes towards debt and a particular set of beliefs and values that relate to the financing of HE. In considering attitudes to debt, this paper also examines the influence of intergenerational learning, in shaping attitudes to debt. In influencing decision making, the importance of ongoing, multigenerational exchanges, across life courses, located in places and expressed through practices is considered (Mannion, Adey and Lynch 2010; Manion, 2012). The research proposes that any ‘strategies of actions’ devised by the young adults were about making money and not owing money and that, at times, the amount of debt appeared to be inconsequential; being in debt was just not the accepted way of doing things. Significantly, evidence suggests that students from working-class backgrounds are more likely to be averse to being in debt and reluctant to accept the debt attached to being a student. Moreover, indebtedness is viewed as a major risk by many working-class young adults and their families. In spite of the perceived value of HE, many young working-class adults consider participation in HE in terms of risks, costs and benefits (Callender, 2003). However, in conjunction with a general fear of debt linked to the young adults attitudes towards the costs and benefits of HE, subtle and hidden disadvantages that moved beyond the question of whether they should participate in HE are also discussed. This research indicates that debt alone was not the main consideration; HE was a guaranteed cost, without a guaranteed benefit. Unless there was a guaranteed extrinsic reward, specifically employment related, there was no motivation to participate in HE. Findings are drawn from a set of semi-structured interviews with 36 young adults and adapts a Bourdieuian framework. This paper considers the subjective points of view of the young adults, with respect to their non-participation, pertaining to debt. It also pays attention to factors which appeared to have shaped and moulded decisions and in doing so, emphasises the complex correlations between individuals and structures (Herzberg, 2006). A particularly complex attitude to debt was highlighted. Not incurring debt appeared to be a cultural rule, particularly when there was no guaranteed financial and employment related benefit to participation. This paper argues that similar outlooks, backgrounds, interests, lifestyles and opportunities resulted in the adoption of shared practices, common patterns of reactions and accepted ways of doing things when it came to debt. This paper enhances our understanding of the complex, yet subtle influence of debt and how this influence young adults choice not to participate in HE

A simple and flexible alternative to the Stability and Growth Pact deficit ceilings. Is it at hand?

We use a simple theoretical model of a monetary union where myopic discretionary fiscal policies generate excessive debt accumulation in steady state and inefficiently delayed debt adjustment following a shock. We advocate the adoption of a flexible debt targeting approach. By setting a long-term debt target and by raising the political cost associated to deviations from the optimal pace of debt reversal following a shock¸ institutional design induces the fiscal policymaker to implement unbiased discretionary responses to shocks. Since the power to discipline fiscal policymakers rests in the hands of national voters, this outcome can be achieved by increasing the transparency of the decision-making process, where national voters understand the long-term consequences of fiscal policies. In practice, we call for clearer and more focused supervision tasks for the European Commission and for a more active role of national Parliaments whenever a disagreement arises between the Commission and a national government.

Persepsi Dan Faktor Psikologis Dalam Pengambilan Keputusan Hutang

The f inance literature supported an increasing role for psychological aspects inthe context of f inancial decision making. This paper explored percept ion of the owner andpsychological aspects related to debt as source of fund. Samples were the owner of indust ryof fermented soybean cake in Salat iga. The result of this study showed that the owner hadpercept ion that debt was as st imulator. It meant debt encouraged the owner more professionalin f inancial management , work bet ter, more product ive and discipline. The study alsodocumented that overconf idence, illusion of cont rol and availability played important rolein the debt decision

Strategic Decision Making and the Dynamics of Government Debt

National Debt;Deficit Spending;Welfare;Models

The Canadian Debt-Strategy Model: An Overview of the Principal Elements

As part of managing a debt portfolio, debt managers face the challenging task of choosing a strategy that minimizes the cost of debt, subject to limitations on risk. The Bank of Canada provides debt-management analysis and advice to the Government of Canada to assist in this task, with the Canadian debt-strategy model being developed to help in this regard. The authors outline the main elements of the model, which include: cost and risk measures, inflation-linked debt, optimization techniques, the framework used to model the government’s funding requirement, the sensitivity of results to the choice of joint stochastic macroeconomic term-structure model, the effects of shocks to macroeconomic and term-structure variables and changes to their long-term values, and the relationship between issuance yield and issuance amount. Emphasis is placed on the degree to which changes to the formulation of model elements impact key results. The model is an important part of the decision-making process for the determination of the government’s debt strategy. However, it remains one of many tools that are available to debt managers and is to be used in conjunction with the judgment of an experienced debt manager.Debt management; Econometric and statistical methods; Financial markets; Fiscal policy

Economic divergences among Eurozone countries have played an increasingly important role in ECB decision-making since the start of the crisis.

Do national economic shocks, such as the debt crisis in Greece, influence ECB interest rate decisions? As Florence Bouvet and Sharmila King note, the ECB officially bases its decision-making on euro-wide data, rather than the situation in individual Eurozone countries. However, this ‘one size fits all’ approach may be inappropriate in cases where there are fundamental economic differences between individual countries. Outlining the results of a study into ECB decision-making, they find that national divergences, particularly among those in the Eurozone’s periphery, have played an increasingly important role during the financial and sovereign debt crises

Governance of the Management of Public Debt in Japan

This paper deals with the issue of Japans public debt, particularly from a governance perspective. Japans public debt continues to follow a rising path mainly due to the fact that, in the harsh economic climate the country has experienced since the 1990s, the government has ended up increasing public sector spending in order to support the Japanese economy. Yet when we look back over these events, this is not the only problem; there are also concerns over whether the system has the rules and institutions necessary to deal with such a situation. Even if temporary measures are taken to alleviate a particular burden, there is no guarantee that financial discipline can be maintained in the long term if there are weaknesses in the system of governance. There are problems first of all not only with public debt management, but also with the regulations which apply to government actions themselves. Since public debt obligation is one of the governments concerns, the roots of any problems with governance are to be found within faults in regulations relating to the government itself. Recent New institutional economics has been fruitful in analyzing the governments internal organizational structure and identifying its characteristic lack of commitment. Using these concepts to look at Japans situation, we can see that it is characteristic that both the burden of debt is distributed among a variety of departments and that capital allocation and decision making are determined by mutual relations among those departments. If we were to trace the source of debt repayment capital, we would probably find that the burden is borne in the last resort by general accounting. It cannot be denied that such a system could lead to a weakening of commitment to repayment on the part of the department using the funds. Furthermore, a system in which a number of different departments are involved in decision making would lead to characteristic problems with governance. The basic policy for dealing with possible failure in governance with regard to public debt is to ensure there is a correspondence between authority and responsibility. Specifically, where you have the authority to incur debts, you have the responsibility to pay off those debts, and where repayment proves difficult, this also remains your responsibility. Where there is a possibility that full responsibility cannot be taken, then part of the authority should perhaps be returned to central government. This paper will consider corporate default legislation as a means of dealing with the former question, and the possibility of general debt management as a means of dealing with the latter.public debt, corporate default legislation, debt management

Fiscal Policy and Unemployment

This paper explores the interaction between fiscal policy and unemployment. It develops a dynamic economic model in which unemployment can arise but can be mitigated by tax cuts and public spending increases. Such policies are fiscally costly, but can be financed by issuing government debt. In the context of this model, the paper analyzes the simultaneous determination of fiscal policy and unemployment in long run equilibrium. Outcomes with both a benevolent government and political decision-making are studied. With political decision-making, the model yields a simple positive theory of fiscal policy and unemployment.