The La Marca model revisited: Structuralist goodwin cycles with evolutionary supply side and balance of payments constraints

This research is aimed at investigating the causes of volatility that affect middle‐income countries by studying the La Marca model. Drawing from the open‐economy Goodwin tradition, this model demonstrates that economic activity, income distribution and accumulation of foreign assets dynamically interact, resulting in a pattern of dampened cycles. The study consists in analyzing the characteristics of the model by initially imposing: (I) a constant real exchange rate; (II) a constant net external asset to capital ratio, which is in line with the balance of payments dominance theory and (III) a fixed income distribution. We then (IV) expand the original model by adding an evolutionary supply‐side in which productivity is at the center of the economic dynamic through international technology transfer and the Kaldor‐Verdoorn effect. The results show that (1) the model always converges. (2) The restrictions (I) and (II) remove the cyclical component of the model, which highlights a central difference between La Marca and the original Goodwin model. (3) Fixed income distribution leads to a monotonic trajectory that reduces oscillations. (4) The inclusion of productivity dynamics generates new sources of volatility in the relationship between productivity, capacity utilization and net external assets and is in line with the structuralist argument of structural fragility

Audit in Belarus under new law and in new environment: first results, problems, prospects

The article analyzes the first results of application of the new law of the Republic of Belarus «On audit activity» since the 01.01.2014. The authors identify the problems inherent in auditing, propose specific measures to solve these problems, and to create the necessary conditions for the further development of audit

A little big history of Tiananmen

This contribution aims at demonstrating the usefulness of studying small-scale subjects such as Tiananmen, or the Gate of Heavenly Peace, in Beijing - from a Big History perspective. By studying such a ‘little big history’ of Tiananmen, previously overlooked yet fundamental explanations for why people built the gate the way they did can be found. These explanations are useful in their own right and may also be used to deepen our understanding of more traditional explanations of why Tiananmen was built the way it was