Models of Financial System Fragility

This survey analyses two types of models: 1. Models based on assumptions of monetary and financial market equilibrium disturbance, in line with mainstream thinking according to which if there is a self-regulating market the units would have rational expectations, and the crisis would be a temporary phenomenon caused by exogenous shocks. Here are the main objectives and features characteristic of three generations of models; 2. Models based on financial instability hypothesis, taking into account the dynamics of financial market, as well as the role of uncertainty, interdependency and dynamic complexity. We present here Minsky’s concept of financial instability and then analyse the content of some simplified models.instability, model generations, balance sheet, hedge units, speculative units, Ponzi units, cyclical fluctuations, complexity

Real convergence and integration

The study is based on the critical observations that competitive market forces alone are not able to assure convergence with the developed countries. These observations are grounded on the results of the computation of the marginal rate of return to capital (which contradict the neoclassical model hypotheses), as well as on the real process of polarisation of the economic activities, taking place worldwide and in accordance with the law of competition. Unlike those who trust the perfect competitive market virtues, the EU’s economic policy is realistic as it is based on the harmonisation of the market forces with an economic policy based on the principle of cohesion, which supports, by means of economic levers, the less developed regions and member countries. This paper deals with the evolution of the EU cohesion funds, as well as with the results of convergence.Neoclassical model, marginal rate of return on capital, polarisation, convergence, divergence, cohesion, cohesion funds, structural funds, variation coefficient.

Economic Convergence. Applications - Second Part -

Real convergence is an essential objective of Romania’s integration into the EU. Bridging the development gaps between Romania and the EU as soon as possible cannot be achieved exclusively through market forces, since they rather tend to cause divergence and polarization. For this purpose, special tools and mechanisms are required; e.g., cohesion. The study deals with the economic convergence of the European countries, and especially the convergence of the CEE countries, including Romania. Models are used to assess the economic growth, approximate the period of real convergence of Romania to the EU, as well as to estimate the s- and ß-convergence, and the main shortcomings of the last indicator. Second part comprises some models and evidence of the economic growth and convergence.Real convergence, divergence, regression method, return to capital, s-convergence, ß-convergence

Real Convergence and Integration

The study ** is based on the critical observations that competitive market forces alone are not able to assure convergence with the developed countries. These observations are grounded on the results of the computation of the marginal rate of return on capital (which contradict the neoclassical model hypotheses), as well as on the real process of polarisation of the economic activities, taking place worldwide and in accordance with the law of competition. Unlike those who trust the perfect competitive market virtues, the EU’s economic policy is realistic as it is based on the harmonisation of the market forces with an economic policy based on the principle of cohesion, which supports, by means of economic levers, the less developed regions and member countries. This paper deals with the evolution of the EU cohesion funds, as well as with the results of convergence.Neoclassical model, marginal rate of return on capital, polarisation, convergence, divergence, cohesion, cohesion funds, structural funds, variation coefficient.

Products Generated Knowledge (Intangible Assets) Determinants in Predicting the Bankruptcy Risk?

A vital activity is the issue of creating a knowledge society, which can only be solved by involving all the forces of intellectual, academic, all generators of ideas. The paper is intended as a contribution, along with attempts by other specialists in finding operational solutions and their implementation in estimating the risk of bankruptcy and predicting its occurrence so through research and development, education and innovation can bring prosperity, development sustainable and personal development of every citizen. Scientific novelty and originality of research and of the results obtained is to formulate proposals of rates in the score function of economic models to estimate the risk of bankruptcy of firms. This rate takes into account intangible assets predominant factor in the evolution of the company and the market value of the company. On the basis of an analysis made it demonstrated that score function for models Altman, Conan-Holder and Rating suffered a pretty significant change if we took into account the intangible assets of the company. Entering this rate into the mentioned models was made using expert systems and neural networks. The analysis, arguments, mathematical models, principles, goals can all be made based on the methodology of scientific research in the creation of knowledge society, scientific elaborations. The results of the work can be applied to all firms in the EU countries\u27 national economies. The mathematical model could have other economic interpretations and therefore can be used in formulating and solving a number of problems in the national economies. This work is licensed under a&nbsp;Creative Commons Attribution-NonCommercial 4.0 International License.</p

Nominal Convergence

After presenting the institutional construction during the pre-accession and post-accession to the Economic and Monetary Union (EMU), the exchange rate mechanisms (ERM) in several countries and the convergence criteria, we go on with a brief analysis of the way the CEE countries cope with the convergence criteria in accordance with the Maastricht Treaty. Then, the study deals with a topic often discussed in the scientific literature and included on the agenda of decision-makers at various levels, in order to clarify the following major issues: a shorter transition to the euro, the exchange rate equilibrium versus the inflation rate diminution and the Balassa-Samuelson effect, the exchange rates and the exchange rate deviation index, evidences concerning the real exchange rate equilibrium and the appreciation of the exchange rate in the CEE countries.Convergence criteria, exchange rate, exchange rate mechanisms, Euro Area, Balassa-Samuelson effect, tradable goods, non-tradable goods, exchange rate deviation index, purchasing power parity.

The Evolution of International Electronic Business

The pace of development of e-commerce is now more significant than that of world trade as a whole, reflected in the work of the World Trade Organization. Reduced costs compared to traditional stores contribute to the opening of new companies. One of the main trends of this year were the changes that have occurred in the work of the great giants of the Internet. For the sake of possible growth, the largest companies are expanding towards 'real markets', for example, Amazon in the US and Singapore, Zalora. At the same time, a number of providers are expanding their online offers, such as Walmart, Nordstorm. The aim of this study is to present an overall analysis of the evolution of international e-business, to identify the problems that hinder their development and to present smart solutions that could be successfully applied by real-life entrepreneurs