Credibility and adjustment: gold standards versus currency boards

It is often maintained that currency boards (CBs) and gold standards (GSs) are alike in that they are stringent monetary rules, the two basic features of which are high credibility of monetary authorities and the existence of automatic adjustment (non discretionary) mechanism. This article includes a comparative analysis of these two types of regimes both from the perspective of the sources and mechanisms of generating confidence and credibility, and the elements of operation of the automatic adjustment mechanism. Confidence under the GS is endogenously driven, whereas it is exogenously determined under the CB. CB is a much more asymmetric regime than GS (the adjustment is much to the detriment of peripheral countries) although asymmetry is a typical feature of any monetary regime. The lack of credibility is typical for peripheral countries and cannot be overcome completely even by “hard” monetary regimes.http://deepblue.lib.umich.edu/bitstream/2027.42/40078/3/wp692.pd

Between Carl Menger and Peter Struve: On Russian liberal economics

The Russian-Speaking scientific emigration after the Bolshevik revolution of 1917 has not been the subject of a systematic analysis. The Russian émigré economists made important contributions to the «high economic theory» and they were essential for the formation of the economic communities and traditions in several Southeast and Central European countries (Bulgaria, former Yugoslavia, Czechoslovakia, and Romania). The majority of Russian economists studied in Germany and Austria, and shared liberal economic views. Our interest in these economists is the result of the observation that their research offers an interesting attempt for the liberal synthesis of the main ideas of the Austrian School (especially those of Carl Menger) and the key insights of Russian economic thought, especially the original economic and sociological system of Peter Struve. That synthesis could be considered as a missed opportunity for the further development of the liberal theory, because for many reasons it remained isolated. In this article we analyze the contributions of two main representatives of this theoretical stream, namely Simeon Demostenov (1886-1966) and Naum Dolynski (1890-1968). © Copyright by Fabrizio Serra editore, Pisa. Roma

Between enthusiasm and skepticism: Bulgarian economists and Europe (1878-1944)

In this article, we present the discussions of Bulgarian economists as regards the strategic development opportunities of the Balkans and Bulgaria in particular within Europe. We focus on the integration efforts of Bulgaria within an economic unit larger than national market during the decades of the so-called first Bulgarian capitalism. Those are the years since the Liberation of Bulgaria from the Ottoman rule in 1878 to the forced imposition of the Communist regime in 1944. The public expenditures on bureaucracy, army, foreign policy etc. increased after Bulgaria’s Liberation. The integration efforts on Bulgarian side were an attempt to ameliorate some negative consequences of the lost “public goods” of being part of the Ottoman Empire. This was the main source of the Bulgarian economists’ pro-European enthusiasm. However, the enthusiasm was combined with skepticism. The main fuel of skepticism came from the fear that industrially developed countries of Central and Western Europe would not allow the industrialization or modernization of the Bulgarian economy. The presentation follows the historical stages of development of the Bulgarian economy and society. It starts from the late pre-liberation era goes through the late 19 th and early 20 th -century ideas for Balkan economic integration, the World War I, and the Great Depression effects, and finishes with the Second World War. Copyright © FrancoAngeli

Rent and longevity of Djibouti’s currency board. A political economy of the monetary regime [Rente et longévité de la Caisse d’émission de Djibouti. Éléments pour une économie politique du régime monétaire]

Since 1949, the Republic of Djibouti has maintained the only existing currency board on the African continent. During its long existence the performance and singularity of the regime have never been questioned. This paper explores the idea that this longevity could be related to the exploitation of an intangible resource, namely the geostrategic position of the country. Preserving in the long term the reproduction and distribution of the geostrategic rent, the currency board perpetuates the flows of power and economic relationships between different actors at a national and international level. We try to theoretically link the dynamics of the monetary regime to those of the political regime. © De Boeck Supérieur. Tous droits réservés pour tous pays

Between Carl Menger and Peter Struve: On Russian liberal economics

The Russian-Speaking scientific emigration after the Bolshevik revolution of 1917 has not been the subject of a systematic analysis. The Russian émigré economists made important contributions to the «high economic theory» and they were essential for the formation of the economic communities and traditions in several Southeast and Central European countries (Bulgaria, former Yugoslavia, Czechoslovakia, and Romania). The majority of Russian economists studied in Germany and Austria, and shared liberal economic views. Our interest in these economists is the result of the observation that their research offers an interesting attempt for the liberal synthesis of the main ideas of the Austrian School (especially those of Carl Menger) and the key insights of Russian economic thought, especially the original economic and sociological system of Peter Struve. That synthesis could be considered as a missed opportunity for the further development of the liberal theory, because for many reasons it remained isolated. In this article we analyze the contributions of two main representatives of this theoretical stream, namely Simeon Demostenov (1886-1966) and Naum Dolynski (1890-1968). © Copyright by Fabrizio Serra editore, Pisa. Roma

Does monetary integration lead to income convergence in Africa? a study of the CFA monetary area

The CFA franc area is one of the oldest currency unions, but it has come under intense criticism recently for failing to promote economic growth and income convergence between member states. This paper examines the growth experience of the 14 member countries relative to a common benchmark over the period 1960–2011. In particular, we use a combination of parametric and non-parametric methods to study convergence patterns as well as growth dynamics and to identify the factors responsible for changes in relative per-capita income. The results indicate divergence tendencies that result in a bimodal distribution in the long run. The sharp devaluation of the CFA franc in 1994 increases intradistributional mobility which is directed towards lower income levels. The regression analysis suggests that openness, FDI, and financial development have a positive and robust effect on convergence in the currency union. © 2018, ISEG

Monetary innovations and digital economy

This article discusses the main changes in the field of digital and cryptocurrencies, as well as their interpretation from the standpoint of the common theory of money (e.g. the definition of monetary functions). The consequences of the central banks’ monetary policies as well as their reaction by launching their own digital currency (central bank digital currency/CBDC) have also been dwelt upon. The possible changes in the global currency system have been outlined. Special attention has been paid to the development of higher economic education as a result of the new monetary and financial technologies and the digital economy. These topics have been set forth against the background of the experience of different countries (with a particular emphasis on Russia's practice), as well as by summarizing leading research and publications in the field. © 2019, Bulgarska Akademiya na Naukite. All rights reserved