Assessing the Potential Strength of a Bank Capital Channel in Europe: A Principal Component Analysis

The asymmetric impact of the recent financial crisis on the European countries' real activity raised the question of the heterogeneity of the transmission channels of shocks in the euro area. In this article, we suggest an assessment of this heterogeneity based on the banks' capital channel (BCC). To this end, we follow an original and global perspective, studying the combination of several key indicators through a Principal Component Analysis (PCA). Based on data collected before the beginning of the crisis, the analysis identifies Germany and Italy as the European economies a priori the most exposed to a financial shock passing through the BCC, while Finland, France or Spain would be the least exposed. The comparison of these a priori results to the post-crisis economic performance of the largest European countries supports the idea of a heterogeneous bank capital channel inside the union.

Monetary Policy and Inflation Divergences in a Heterogeneous Monetary Union

It is widely recognized that the Euro area is an asymmetric monetary union which assembles countries with heterogeneous structures on financial, goods and labour markets stricken by asymmetric shocks. However, the main objective of the European Central Bank (ECB) is to preserve price stability for the euro area as a whole, and the ECB pays most of its attention to union-wide output and (principally) inflation, neglecting, at least on the level of principles, inflation and output divergences in union. In this paper, we wonder, at a theoretical level, about the social loss associated with such an objective based on aggregate magnitudes, and we search for solutions, namely an “optimal” contract for a common central bank. We show in particular that it is not necessarily a good thing that a common central bank worries about inflation divergences without being concerned about output divergences in union.Monetary Policy ; Monetary Union ; Heterogeneity, Optimal Contract ; Inflation Divergences

The Impact of Financial Markets Globalization on Companies Capital Structure

Insuring the assets financing was a permanent concern in the companies. The aim of the financing policy was to identify the most profitable financing sources for the company, at the lowest cost possible and correlated in time with the need of resources. The modelling of the cost of capital, as well as that of the optimal combination of various financing sources in order to obtain a cost of capital able to lead to maximizing the companies value, especially in the conditions of a durable financing are permanent challenges for scientific research. The capital structure of the companies is determined by a wide range of quantitative and qualitative factors, which can be divided in two classes: on one side, factors independents on companies decisions (the stability of the economy, the fiscal system, the monetary and capital markets), and on the other side internal factors (the size of the company, the profitability, the percent of tangible assets in total assets etc.). The accessibility of the financing sources is in present influenced by the characteristics of the credit and capital markets are characterized in present by complex phenomena such as the globalization and the adhesion of certain countries to European Union.globalization, capital structure, financial markets, fiscal system, cost of capital.

Some considerations on investment projects valuation

The classical criteria for investment projects valuation, although easy to apply, have the disadvantage of not reflecting the complexity of the social and economic phenomena implied by these projects. This study emphasizes some aspects that should be carefully taken into account in the valuation process of investment projects. Hence, the assessment of the discount rate, the estimation of future earnings and the quantification of social benefits are analysed.direct investments, discount rate, estimated earnings, social benefits, financing.

Monetary policy transmission asymmetries in a heterogeneous monetary union: a simple contractual solution

In this paper, we show that imposing linear penalties on inflation and income divergences to a common central bank could be an interesting solution to stabilization problems in a heterogeneous monetary Union. We find an “optimal contract†for monetary policy which enforces the optimal solution for maximizing Union-wide welfare. This contract may provide a good institutional response to stabilization problems raised by monetary policy transmission asymmetries, as described in De Grauwe & Senegas (2004).

About the Concept of the Environment Recycling—Energy (ERE) in the Romanian Steel Industry

This paper takes as its starting point an analysis of the ecological functioning of the electric arc furnace (EAF). Thus, we present a classification of emissions generated by EAF, including limits of variation in chemical composition of “dust” issued by EAF in various countries and limit values for permissible concentrations of these emissions.The paper presents and analyzes various abstraction and treatment-related emissions for hipo-polluting operation of EAF. In this chapter, the correlations between macro system represented by metallurgical environment and interacting systems: System-Energy-Recycling Environment (ERE), Ecological system (ECO), and Recycling, Reclamation System (REC-REV) are presented. These correlations are presented in the spirit of sustainable development concepts (DC) and total quality (TQ)

Reply to “the missing, the short, and the long: Exploring the borderland between psychiatry and neurology”

Peer Reviewedhttps://deepblue.lib.umich.edu/bitstream/2027.42/138427/1/ana25033.pdfhttps://deepblue.lib.umich.edu/bitstream/2027.42/138427/2/ana25033_am.pd

Capital budgeting: the Romanian university professors' points of view

This study aims at validating the points of view of the Romanian finance university professors regarding capital budgeting. The study is original and important in the same time, taking into consideration that their opinions, due to their vocation of educators, may represent the starting point for debates on the most suitable methods and techniques used in the practice of this field. It can be noticed that the dominant points of view converge to the recommendations of the main reference works in the domain of corporate finance. Hence, indicators like net present value, internal rate of return or profitability index are the most preferred. Among the techniques of risk quantification, the sensitivity analysis is considered as the most suitable, followed by the Monte Carlo method and the scenarios technique. As for the discount rate used for the investment projects analysis, the most numerous respondents recommend the weighted average cost of capital.

Politique économique et transmission des chocs dans la zone euro

Cet article propose une analyse descriptive des données macroéconomiques dans la zone euro et une étude de la transmission des politiques monétaire et budgétaire à travers une analyse SVAR. Les résultats suggèrent que, depuis la création de la zone euro, la politique monétaire a joué un rôle important aussi bien pour la stabilisation de l’inflation et de l’activité réelle, en ayant un comportement contracyclique soutenu. Au niveau agrégé, la politique budgétaire semble aussi avoir favorisé la stabilisation de l’activité réelle par des actions contracycliques (surtout après 2003). Cependant, des divergences importantes apparaissent au niveau national, mettant en cause l’efficacité de la gestion budgétaire dans l’Union économique et monétaire (UEM). L’étude de la transmission des différents chocs à l’intérieur de la zone confirme l’idée d’une certaine complémentarité entre politique monétaire commune et politiques budgétaires nationales. Elle met aussi en exergue l’hétérogénéité de la transmission des chocs au niveau national, preuve de la présence d’asymétries structurelles qui persistent dans cette région.This paper provides a descriptive analysis of macroeconomic data in the euro area and uses a SVAR approach to study the transmission of the fiscal and monetary policy in this region. The results suggest that the monetary policy has played an important role since 2000, both for the inflation and output stabilization, having a sustained counter-cyclical behavior in the euro area. If, at aggregate level, the fiscal policy also appears to have supported the output stabilization (especially after 2003), significant differences appear at the national level, casting doubt on the effectiveness of budgetary policy design in the Economic and Monetary Union (EMU). The study on the transmission of shocks within the area confirms, in a certain extent, the complementary actions of the monetary policy and of the national fiscal policies. It also underlines the heterogeneity of the transmission of shocks at the national level, which is a proof of still persistent structural asymmetries in this area

Research and Devolopment about Metallurgical Industry of Romania

Our chapter wishes to be a critical and reasoned radiography of the evolution/involution of metallurgical industry in Romania during the period 1990–2016. The importance of metallurgical industry, for any state, is obvious and overwhelming. In this context, paraphrasing a known dictum, we can strongly say that in the industrial environment and in life generally ‘if there is no metallurgy, nothing is!’ The structure and content of our material is logical one and evolutionary. So, we firstly present in order a description of the main metallurgical companies in Romania (companies in the steelmaking industry: COS Mechel Targoviste, ArcelorMittal Galati; companies from non‐ferrous metallurgy: Alro Slatina, CupruMin Abrud; metallurgical companies in the manufacturing and assembly industry: Metalurgica Aiud, Timken S.A Ploiesti). In Section 3, we describe critical components concerning the involution of steel industry in Romania. Thus, we analyse: benchmarks, restructuring of the steel industry in Romania, the impact of the global crisis on the steel sector in Romania, privatization, modernization/restructuring and monitoring between 2004 and 2008. In Section 4, we present the prospects of metallurgical industry in Romania, and in Section 5, we present technical‐economic components specific to the industry of metal materials