Financial Integration at Times of Financial Instability

This article analyzes the phenomenon of financial integration on both the theoretical and empirical levels, focusing primarily on assessing the impacts of the current financial crisis. In the theoretical section we first look at the definition of financial integration and summarize the benefits and costs associated with this process. We go on to examine the relationship between financial integration and financial instability, emphasizing the priority role of financial innovation. The subsequent empirical section provides an analysis of the speed and level of integration of the Czech financial market and the markets of selected inflation-targeting Central European economies (Hungary and Poland) and advanced Western European economies (Sweden and the United Kingdom) with the euro area. The results for the Czech Republic reveal that a process of increasing financial integration has been going on steadily since the end of the 1990s and also that the financial crisis caused only temporary price divergence of the Czech financial market from the euro area market.Beta-convergence, financial crisis, financial integration, gamma-convergence, new EU Member States, propagation of shocks, sigma-convergence.

Models for Stress Testing Czech Banks' Liquidity Risk

We provide a macro stress-testing model for banks' market and funding liquidity risks with a survival period of one and three months. The model takes into account the impact of both bank-specific and market-wide scenarios and considers both the first- and second-round effects of shocks. The testing model has three phases; (i) the formation of a balance-sheet liquidity shortfall, (ii) the reaction by banks, and (iii) the feedback effects of shocks. During each phase we re-count the liquidity buffer and examine whether banks hold a sufficiently large amount of liquid assets to be able to survive the liquidity tension in their balance sheets. An application to Czech banks illustrates which bank business models are sensitive to liquidity tensions. Overall, we confirm that the Czech banking system is resilient to a scenario mimicking the international liquidity crisis of 2008-2009.Banking, financial stability, liquidity risk, stress testing.

Financial Integration of Stock Markets among New EU Member States and the Euro Area

The paper considers the empirical dimension of financial integration among stock markets in four new European Union member states (the Czech Republic, Hungary, Poland and Slovakia) in comparison with the euro area. The main objective is to test for the existence and determine the degree of the four states’ financial integration relative to the euro currency union. The analysis is performed at the country level (using national stock exchange indices) and at the sectoral level (considering banking, chemical, electricity and telecommunication indices). Our empirical evaluation consists of (1) an analysis of alignment (by means of standard and rolling correlation analysis) to outline the overall pattern of integration; (2) the application of the concept of beta convergence (through the use of time series, panel and state-space techniques) to identify the speed of integration; and (3) the application of so-called sigma convergence to measure the degree of integration. We find evidence of stock market integration on both the national and sectoral levels between the Czech Republic, Hungary, Poland and the euro area.Beta convergence, new EU member states, sigma convergence, stock markets.

Current Account Reversals and Growth: The Direct Effect Central and Eastern Europe 1923-2000

According to economic theory, the capital inflows reversal – so-called sudden stop – has a significant negative effect on economic growth. This paper investigates the direct impact of current account reversals on growth in Central and Eastern European countries. Two steps to conduct the analysis are applied. In the first step we estimate the standard growth equation augmented by an effect of the current account reversal. We find that after a current account reversal the growth rate declines by 1.10 percentage points in the current year. The subsequent analysis of the adjustment dynamics builds upon the notion of convergence. We find the unconditional and conditional convergence coefficients to be - 0.47 and -0.52, respectively. This implies that the consequences of the reversal are likely eliminated after 3.3 years when the actual growth rate is back at its equilibrium level, ceteris paribus. Finally, the cumulative loss associated with a sudden stop in capital flows is about 2.3 percentage points. We infer that Central and Eastern European countries are relatively flexible in terms of adjustment and reallocation of resources given the findings in similar literature examining either a more general sample or concentrating on rather different regions.Current Account Reversals ; Economic Growth ; Emerging Market Economies ; Adjustment Dynamics ; Panel Data Analysis

Development of internal corporate communication : Study case: Company FIEGE

This study purpose was to examine the internal communication in the company FIEGE. Case company’s internal communication had changed in the past years due to management changes. The thesis has observed the internal communication in the case company and found the main problem in the internal communication. Primary and secondary data has been collected in the research that has been used for further analysis. In the theoretical part are described definitions and previous findings concerning internal communication from different kind of sources. Knowledge base part includes theory that is linked to internal communication, such as communication channels and strategy. In the practical part of the research had been collected data from individual interviews with company employees. Both primary and secondary data have been analyzed in the research analysis section of the report. Finding of the research are described in the conclusion of the report. Outcome of the research is a plan of improvements where is written the main problem in the internal communication. In the plan of improvements are described recommendations for the company management

IST Austria Technical Report

We consider Markov decision processes (MDPs) with multiple limit-average (or mean-payoff) objectives. There have been two different views: (i) the expectation semantics, where the goal is to optimize the expected mean-payoff objective, and (ii) the satisfaction semantics, where the goal is to maximize the probability of runs such that the mean-payoff value stays above a given vector. We consider the problem where the goal is to optimize the expectation under the constraint that the satisfaction semantics is ensured, and thus consider a generalization that unifies the existing semantics. Our problem captures the notion of optimization with respect to strategies that are risk-averse (i.e., ensures certain probabilistic guarantee). Our main results are algorithms for the decision problem which are always polynomial in the size of the MDP. We also show that an approximation of the Pareto-curve can be computed in time polynomial in the size of the MDP, and the approximation factor, but exponential in the number of dimensions. Finally, we present a complete characterization of the strategy complexity (in terms of memory bounds and randomization) required to solve our problem

IST Austria Technical Report

We consider Markov decision processes (MDPs) with multiple limit-average (or mean-payoff) objectives. There have been two different views: (i) the expectation semantics, where the goal is to optimize the expected mean-payoff objective, and (ii) the satisfaction semantics, where the goal is to maximize the probability of runs such that the mean-payoff value stays above a given vector. We consider the problem where the goal is to optimize the expectation under the constraint that the satisfaction semantics is ensured, and thus consider a generalization that unifies the existing semantics. Our problem captures the notion of optimization with respect to strategies that are risk-averse (i.e., ensures certain probabilistic guarantee). Our main results are algorithms for the decision problem which are always polynomial in the size of the MDP. We also show that an approximation of the Pareto-curve can be computed in time polynomial in the size of the MDP, and the approximation factor, but exponential in the number of dimensions. Finally, we present a complete characterization of the strategy complexity (in terms of memory bounds and randomization) required to solve our problem

Evaluation of liquid moisture transport in textile structures

The present study is focused on the investigation of liquid moisture transport in textile materials by means of thermography and microtomography systems. The new vertical wicking method which combines the thermography system and the image analysis system is presented in this study. Further, porosity analysis of knitted fabrics by microcomputed tomography system is carried out to support understanding of liquid moisture transport phenomena. Textile structures used for functional underwear for sports and for special non-flammable hi-tech underwear have been selected to tested group. Results indicate that the distribution of pore thickness can be useful to uncover complex behaviour of textile structures during moisture transport into their structure

Neue Musikrezeption bei Thomas Mann: Betrachtungen zu „Fülle des Wohllauts“ im Roman „Der Zauberberg“

Als Bruno Walter von 1913 bis 1922 als musikalischer Direktor an der Oper in München tätig war, verkehrte er mit Thomas Mann, der sich gerade mit seinem Roman „Der Zauberberg“ beschäftigte. Und bald hatte der weltberühmte Dirigent bei diesem Schriftsteller eine „Wesensbeziehung zur Musik“ bemerkt. Da Hans Castorp oft wie Thomas Manns eigenes Kind betrachtet wird, ist diese Hauptperson im „Zauberberg“ auch als derjenige dargestellt, der Musik von Herzen liebt. Und nachdem sein Vetter Joachim Ziemßen gestorben war und auch Madame Chauchat ihn verlassen hatte, wurde im siebten Buchkapitel im Abschnitt „Fülle des Wohllauts“ ein Grammophon vom neuesten Typ, „Polyhymnia“, im Sanatorium „Berghof“ aufgestellt, welches Hans nicht nur getröstet sondern auch sehr begeistert hat. „Der Klangkörper, unentstellt im übrigen, erlitt eine perspektivische Minderung. [...] so war es nicht anders, als stände dort im Salon der Künstler in körperlicher Person, das Notenblatt in der Hand, und sänge.“ ― Solche konkreten Beschreibungen über „Polyhymnia“ sind ein Beweis dafür, dass Thomas Mann selber zum Genuss der Musik diese neue Technologie positiv bewertete. Danach werden die auf die Schellackplatten mit einer Geschwindigkeit von 78 min-1 aufgenommenen fünf Musikstücke (Giuseppe Verdis „Aida“, Claude Debussys „Prélude à l’après-midi d’un faune“, Georges Bizets „Carmen“, Charles Gounods „Faust“ und Franz Schuberts „Der Lindenbaum“) vorgestellt. Darunter ist vor allem der Kommentar zum „Lindenbaum“ bemerkenswert, denn hier wird hauptsächlich analysiert, wie dieses Lied von einem Tenorsänger vorgetragen wird. Eine derart ausführliche Analyse ist nur dadurch möglich, dass die Vorführung auf einer Seite der Schellackplatte wiederholt und intensiv nachverfolgt werden kann. Auch noch zu beachten ist der Kommentar zur letzten Szene im vierten Akt von Giuseppe Verdis „Aida“. Radames, der zum Tod verurteilt und lebendig in der Grube eingeschlossen wird, findet Aida, die sich dort im Voraus eingeschlichen hat. Den bevorstehenden Tod außer Acht lassend besingen die beiden Eingeschlossenen ihre ewige Liebe. Diese Beschönigung tröstet Hans Castorp sehr, weil er selber von der Welt getrennt im Sanatorium „eingeschlossen“ ist. Die Szene wird aber nicht durch die reale Aufführung im Opernhaus, sondern durch die im Grammophon „eingeschlossene“ mitgeteilt. Das Grammophon „Polyhymnia“, das im letzten Kapitel vom „Zauberberg“ erscheint, könnte selber die Welt dieses Romans andeuten.本稿は2016年11月5日，香川大学で開催された日本独文学会中国四国支部学会研究発表会での発表原稿を加筆修正したものである

Multidisciplinarna istraživanja nalazišta Vrbjanska Čuka kod Slaveja (Pelagonija) – godina 2016.

The Vrbjanska Čuka archaeological site is a tell site of the type that is common in the Pelagonian region. It is located approximately 1.3 km south of Slavej and the same distance east of Vrbjani (Republic of North Macedonia). The site was excavated from 1979 to 1989, and new multidisciplinary research on the tell started in 2016. The recent archaeological excavations took place in a 15 x 10 m trench, where 2 houses with ovens, bins, railings and platforms in their interior were recorded. Typical characteristics of the Pelagonian Neolithic were observed in the material culture but also remains from the Classical antiquity and Medieval periods were documented. Besides the excavation and documentation of archaeological material, in 2016 an archaeobotanical analysis of organic samples was conducted, together with a geomagnetic survey of the whole area, digital topographic modelling of the tell and a 3D reconstruction of its appearance, and also an investigation of the prehistoric sites around Vrbjanska Čuka. This multidisciplinary approach provided new data and a more detailed understanding of the processes through which this settlement developed.Arheološko nalazište Vrbjanska Čuka je nalazište tipa tel kakvo je uobičajeno na području Pelagonije. Nalazi se oko 1,3 km južno od Slaveja, a toliko je udaljeno i od Vrbjana (Republika Sjeverna Makedonija). Nalazište je istraživano od 1979. do 1989. godine, a nova multidisciplinarna istraživanja na ovom telu počela su 2016. godine. U nedavnim arheološkim istraživanjima otvorena je sonda veličine 15 x 10 m u kojoj su otkrivene dvije kuće s pećima, jamama za otpatke, ogradama i platformama. Materijalna kultura je obilježena tipičnim značajkama pelagonijskog neolitika, ali zabilježeni su i ostaci iz antičkog i srednjovjekovnog razdoblja. Osim iskopavanja i dokumentiranja arheološkog materijala, istraživanja iz 2016. su obuhvatila i arheobotaničku analizu organskih uzoraka, geomagnetsku prospekciju cijele površine istraživanja, digitalno topografsko modeliranje tela i trodimenzionalnu rekonstrukciju njegovog izgeda kao i rekognosciranje prapovijesnih nalazišta oko Vrbjanske Čuke. Ovaj multidisciplinarni pristup rezulturao je novim podacima i sveobuhvatnijim razumijevanjem procesa razvoja ovog nalazišta