MANAGING THE FINANCIAL FLOWS: GLOBALIZATION ASPECT

The basic trends in financial flows movement on the regional level have being examined in context of integration and globalization processes. The influence of financial flows on the financial potential of the region and its ability to develop own financial infrastructure have being analyzed. The directions for overcoming the negative influence of the institutional factors on the financial flows movement have being defined.The basic trends in financial flows movement on the regional level have being examined in context of integration and globalization processes. The influence of financial flows on the financial potential of the region and its ability to develop own financial infrastructure have being analyzed. The directions for overcoming the negative influence of the institutional factors on the financial flows movement have being defined

MANAGING THE FINANCIAL FLOWS: GLOBALIZATION ASPECT

The basic trends in financial flows movement on the regional level have being examined in context of integration and globalization processes. The influence of financial flows on the financial potential of the region and its ability to develop own financial infrastructure have being analyzed. The directions for overcoming the negative influence of the institutional factors on the financial flows movement have being defined.The basic trends in financial flows movement on the regional level have being examined in context of integration and globalization processes. The influence of financial flows on the financial potential of the region and its ability to develop own financial infrastructure have being analyzed. The directions for overcoming the negative influence of the institutional factors on the financial flows movement have being defined

GLOBAL FINANCIAL FLOWS: SHIFTING THE BALANCE

On the basis of comparative analysis of the basic groups of national economic indicators, provided by The World Bank, the changes in balance in financial resources distribution are defined. The gradual shifting of center of generation of financial resources from North America to Middle, Eastern and South Asia is discovered. The factors that influence on the given processes are shown, and the main future trends of global economy are substantiated.On the basis of comparative analysis of the basic groups of national economic indicators, provided by The World Bank, the changes in balance in financial resources distribution are defined. The gradual shifting of center of generation of financial resources from North America to Middle, Eastern and South Asia is discovered. The factors that influence on the given processes are shown, and the main future trends of global economy are substantiated

Ageing, interest rates, and financial flows

The median age of the global population is presently increasing by nearly three months every year. Over the next couple of decades, almost every country in the world is set to experience an unprecedented increase in the share of elderly population. This development has the potential to fundamentally affect the functioning of economic and financial systems globally. This study concentrates on the effects of ageing on the evolution of global interest rates and financial flows. The study uses a 73-cohort general equilibrium overlapping generations model of five major economic areas (USA, EU-15, Japan, China, and India). Utilising actual population data and UN population projections, the model yields predictions for major economic and financial variables up to 2050. The model predicts a decline in global equilibrium real interest rates over the next two decades, but the size of the decline depends crucially on the future evolution of public pension benefits. If the present generosity of pension systems is maintained – leading to a steep increase in the cost of the pension systems – the maximum decline of interest rates is projected to be about 70 basis points from present levels. If pension benefits are reduced to offset the increasing cost pressures, the decline in global equilibrium interest rates can be much larger, while increases in the retirement age work in the opposite direction. The results do not anticipate a ‘financial market meltdown’ – a collapse in asset prices associated with the retirement of the baby-boomers – predicted by some. On the contrary, bond prices should fare fairly well over the next three decades. The main reason for this is that increasing life expectancy at retirement creates a need for higher retirement saving – in the future, people will want to retire wealthier than they do today. This trend more than offsets the negative effect of the retirement of baby-boomers on asset demand.ageing; real interest rates; financial flows; public pension systems

Optimizing the management of financial flows based on assessment of regional multiplier effects

This article examines the issues of improving the effectiveness in the management of regional financial flows. As their main hypothesis, the authors provide a rationale for the argument that the management of regional financial flows must be optimized on the basis of multiplier economic effects that allow to better assess the performance of regional socio-economic policy. The article presents a multifactor model for managing the financial flows at the regional level, or the matrix of financial flows based on the principles of general economic equilibrium theory, Input—Output balancing method and methodology of national accounts system. The consolidated budgetary balance sheet of the region is presented as an important structural element of the model. A methodology has been developed for integrating the consolidated budgetary balance sheet of the region in the matrix of financial flows. By using the example of individual subjects of the Russian Federation, the authors calculated the matrix multipliers of consolidated budgetary balance sheet that allow to simulate the multiplier economic effects resulting from the impact of different types of exogenous economic factors on the development of regions, and to forecast the impact of changes in the fiscal reallocation on GRP and household income, assess the impact of external investment on the economic growth of the regions and study the effectiveness of federal tax policy at the regional level. The article demonstrates that the value of multiplier effect depends on several factors, including the external trade relations of the region, its dependence on imports, the share of value added in gross output, as well as the propensity of households to savings. The approach proposed by the authors can be used by the government authorities at different levels in the development of their strategies of socio-economic development, assessment of the extent and areas of impact made by various exogenous factors on the economy of the region, as well as in the analysis of the investment initiatives of the private sector seeking the financial support for its projects from the state. The authors propose the areas for improving the management of financial flows based on maximizing the multiplier economic effects in the short and medium term for the regions with a different level of fiscal capacity.The article has been prepared with the support of the Grant of the Russian Foundation for Humanities (project №15–02–00587)

Intersectoral financial flows in developing countries

This paper is about financial flows in developing countries. It reviews the evidence on who the borrowers and lenders are. Apart from collecting and summarizing available data from some seventeen countries, the paper presents the results of an econometric analysis of the interactions between the net lending behaviour of the different sectors. The paper is organized as follows. Section 2 clarifies some terms and in particular explains what a complete set of flow of funds accounts looks like. Section 3 provides an analytical framework for the consideration of flow of funds data. Section 4 reports the main data on sectoral surpluses and deficits and summarizes the empirical findings on their mutual interaction and on their determinants. Section 5 describes the typical pattern in developing countries of financial flows by instrument. A summary and conclusion is presented in section 6.Banks&Banking Reform,Economic Theory&Research,Financial Intermediation,Environmental Economics&Policies,International Terrorism&Counterterrorism

Measuring time preferences

We review research that measures time preferences—i.e., preferences over intertemporal tradeoffs. We distinguish between studies using financial flows, which we call “money earlier or later” (MEL) decisions and studies that use time-dated consumption/effort. Under different structural models, we show how to translate what MEL experiments directly measure (required rates of return for financial flows) into a discount function over utils. We summarize empirical regularities found in MEL studies and the predictive power of those studies. We explain why MEL choices are driven in part by some factors that are distinct from underlying time preferences.National Institutes of Health (NIA R01AG021650 and P01AG005842) and the Pershing Square Fund for Research in the Foundations of Human Behavior

De ziekenhuisfinanciering: uitdagingen, sterktes en kansen tot verbetering

Hospital care is an important link of our healthcare system. The development of an appropriate organization and financing design that stimulates effective, fair and qualitative care is therefore a crucial challenge. In today’s context, Belgian hospital care is being financed in a complex and fragmented way. There are different financial flows that are being designed in close collaboration with the sector. This leads to a rather opaque system, sometimes with very little coordination between the different financial flows. The way physicians and hospitals are being paid needs to be reconsidered and will need to reward quality one way or the other. The patients themselves will also need to take up new roles, and sick funds will need to be involved in improving the current hospital financing system