Economic stability

and proposed stabilization measures seek to remedy this vulnerability by promoting economic integration, further fiscal discipline and debt redemption [5]. The economic stability loss from foregoing exchange rates and national monetary policies is greater than monetary efficiency gains – especially for European periphery countries. European economic integration is still in its infancy and re-quires further action to reduce its future cost and thus make the EMU more resistant to macroeconomic disturbances. Awareness of the necessary steps to be taken has slowly grown. Efforts to overcome the current economic crisis will simultaneously improve the EMU’s long-term performance as a currency union [6]. Accordingly, the present study examined the role of economic adjustment of euro area member countries in the emergence of regional currency crisis. For this purpose, after presenting the literature of the subject, first we discuss the theoretical foundations of currency systems and the theory of optimal currency zone, how the euro area was formed and the currency crisis in the region. Then, per capita GDP is used to identify the differences between countries' levels of development, the result of their different economic structures. Accordingly, Eurozone member countries are categorized into two groups in order to compare closely the severity of the impact of factors affecting trade fluctuations between each group of countries, indicating economic inequality in the countries in the region. Finally, based on the literature of the subject and the theoretical foundations of the generalized Mandel-Fleming model, a suitable model for examining the different effects of economic structure on trade fluctuations among euro area countries has been selected and its results analyzed. This is important because one of the main goals of optimal exchange rate policy and optimal monetary zone is to stabilize trade and currency fluctuations. Also, in order to provide solutions for economic adjustment between regions, the effects of reducing or increasing the economic structure of the member states of the region, including Germany selected in the present study in terms of GDP and balance of payments of the selected model country, have been examined.

Abstract. The economic crisis, followed by the sovereign debt crisis, resulted in high unemployment, unsustainable public finances and deepening disparities between Euro Area member states, and underlined the necessity of strengthening economic coordination. In order to lessen the effects of the crises, to prevent further deepening of the economic context and the appearance of new similar situations, the European framework was improved by the provisions of the new economic governance. The aim of this paper is to assess the effects regarding macroeconomic stability within Euro Area member states, achieved under the new economic governance framework. In this respect, the first part of the paper consists in an overview of the provisions imposed through the European Semester, the reformed Stability and Growth Pact and the other elements of the new European governance. In order to assess the achievement of economic stability we analyzed data for Southern Euro Area member states, during 2009-2013, as this group of countries registered most issues during 2013. We took into consideration five important indicators, essential in any economy that form the macroeconomic stability pentagon: economic growth rate, unemployment rate, inflation rate, budgetary balance and current account balance. By comparing the area obtained through the macroeconomic stability pentagon, we conclude on meeting one of the main objectives of the new European governance: economic stability.

Abstract: The objective of this study is to capture a nexus between economic stability and female un- employment in Pakistan. Since economic stability enables macro-economic objectives such as sustainable growth, it creates conductive environment for employment. This study used foreign direct investment (FDI), consumer price index (CPI), fiscal deficit, debt to GDP, interest rate and exchange rate regarded as indica- tors of economic stability. Whereas, time series data for the period from 1973 to 2015 has employed through Augmented Dickey Fuller and Phillip-Perron and unit roots tests are applied to check the stationarity of the data. It has found that data is a mix of level I(0) and 1st difference I(1), which further justify us to apply auto regressor distributed lags (ARDL) bound testing approach for results. The Error Correction Mechanism (ECM) technique has applied for the short run dynamics of the models. However, CPI has positive and signif- icant relationship with female unemployment in Pakistan. Whereas, exchange rate has negative related with female unemployment. Moreover, it is highly recommended to maintain economic stability through monetary and fiscal policy mechanism and there is also a dire need to formulate gender sensitive policies to create more employment opportunities to female labour force in the economy.

This study uncovers the different prospects of derivative market in Bangladesh. Economic stability can be achieved through derivative market in Bangladesh. Due to instable economic conditions and restricted environment, corporate sector has reflected insignificant contribution in equity or bond markets in Bangladesh. Rapid infrastructure development, political stability, effective governance, experience and awareness of market participants are the key factors that may lead to build a strong derivative market in Bangladesh. Hence, literature is reviewed and analyzed due to unavailability of appropriate data for this study. Findings of the study have suggested that derivatives are an effective risk mitigating tool on one hand whereas on the other side, highly speculative activities in derivative market may be harmful for the financial markets and economic growth. In Bangladesh perspective, all the players of financial market will have to adopt adequate risk mitigating strategies to avoid any adverse market scenario. Speculative activities must be highly restricted due to economic instability as Bangladesh is not in a position to absorb any financial shocks or crisis. The main regulatory authority of this particular market will be Bangladesh Bank (BB) and Bangladesh Security and Exchange Commission (BSEC) though this kind of market is not introduced yet in Bangladesh. The regulators will keenly observe market and take necessary actions to prevent any adverse conditions.

Economic policies always play a crucial role to achieve the country's economic stability through the mutual integration of fiscal and monetary policies. This study is one of the initiatives to analyze the dynamism of economic policies to achieve Pakistan's economic growth while controlling public taxes, government expenditures, broad money supply, inflation, and unemployment during a period of 1980-2017. The study employed the ARDL –Bounds testing approach in order to obtain the short- and long-run elasticities under the cointegrated framework. The results show that in the short-run, tax rate largely supported the country’s economic growth, while this result is disappeared in the long-run, where high tax rate substantially decreases economic growth. The result concluded that contractionary fiscal policy is undesirable in the long-run due to large tax evasion, which negatively impacts on the country's economic growth. The results further reveal that money supply has a positive and significant impact on country's economic growth both in the short and long-run, which implies that expansionary monetary policy stimulates economic growth via the channel of domestic and foreign investment in a country. The study also suggests that state should focus on fiscal measures while monetary measures can be effective in long-term.

The building and the expanding of the European Union from 6 to 27 member states was a process developed in 50 years. In 1957 the European Community was founded in only six countries, but the next stages reached 27 states with Romania and Bulgaria that joined at the 1 st of January 2007.The assessment of the role and place of Romania in the context of the regional and between the regions cooperation must leave from the new dimensions of the globalise process of regional integration, from the fast changes on the scale of the geo-economic positions and from the world strategies taking into account that in the current wave of globalising, the performing economies prove to adapt fast to the world economy.

The stability of Money Supply using CUSUM and CUSUMSQ tests which Brown, et al (1975) developed was tested. For stability to hold, it is important that the CUSUM and CUSUM Squares statistics stay within the 5% critical bound (represented by two straight lines whose equations are detailed in Brown et al.(1975). As we can see from the two figures above, neither the Cumulative Sum ( CUSUM )nor Cumulative Sum of Squares CUSUMSQ) plots cross the 5% critical lines. It can be deduced that the estimated parameters for the money supply are stable in the recent time. A stable MSS demand function exists over the entire sample period in Nigeria. These empirical results support the CBN in its choice of money supply as an intermediate target for monetary policy.

As a result of the steady integration of financial markets over the past two decades, risk is increasingly priced and traded at the global level. For individual economies, this potentially increases the importance of the financial system as a source and propagator of shocks and also potentially changes the relative importance of each of the aforementioned amplification channels. The United States and Europe are the main sources of foreign investment in the Asia-Pacific region, and consequently economies in the region are heavily exposed to shifts in US and European creditors’ leverage and risk appetites. For example, US and European banks account for 60% or more of cross-border loans to borrowers in most Asia-Pacific countries (Graph 6, left-hand panel). Deleveraging by US and European financial institutions has made access to external funding very difficult for many borrowers in the Asia-Pacific region. Countries with current account deficits are particularly vulnerable at the present juncture, but even countries with current account surpluses could see economic growth undermined by the higher cost of refinancing foreign liabilities (Graph 6, right-hand panel).

We used a PEST analysis to update the main political, legislative, economic, social, demographic, technological and environmental changes that affect the industry as a whole. The main discussions outlined during the report and the findings are summarized in the table above. This table lists the main drivers which have been identified as key in the PEST process, including some examples. It is important to note that this list is not exhaustive and thus there may be other direct and/or indirect factors which could play an important role in this regard. Moreover, this paper is not an attempt to determine the most significant risk. Indeed the aim has been to bring forward a discussion and not prophesize the next cataclysmic change. More studies like [41] examining the perceived major risks by professionals, regulators and academics would be recommended.

Banking crises have unexpectedly influenced advanced and emerging countries around the world over the past decade. For illustration, the Asian crises of 1997-98 were an international shock to economists and policy community because East Asian countries were growing fast (Radelet, Sachs, Cooper & Bosworth 1998). After a decade, the world experienced the effect of 2007 U.S. crisis, which later hit advanced economies. Previous research associated the crises with slow responses from policy makers, structural and financial problems, regulations, economic and political conditions (Kaminsky & Reinhart 1999; Radelet et al. 1998; Reinhart & Rogoff 2009). Hence, these crises may be avoided if associated problems could be overcome.

Over the last few decades, one issue that has been the centerpiece of discussion and occupied a great deal of attention among the academics and central bankers pertains to the merits of monetary rules verses monetary discretion. Henry Simon (1936) and Milton Friedman (1960) spearheaded this discussion in modern times. Friedman argued that the length and variability of lags in the effects of monetary policy make it rather impossible for policy makers to consistently perform their duties in setting monetary goals for economic stabilization, growth, and

changes in United States economic policies and the collapse of the international economy which shows that the two major turning points in United States foreign economic policy -.. behind[r]

In our opinion, the activation of society in solving social and economic issues is a positive trend for the Khmelnitskyi region. The process of decentralization of the region is beneficial. The distribution of budget funds for the needs of society to achieve the goals has become a transparent process. In addition, if a public project is important and the region is interested in its implementation, voting for the selection of proposals increases. In the future, the implementation of such public projects will be useful for the economic growth of the region, because of the main motives of the economic behavior of business units in it. This will allow enterprises to integrate not only one industry but also an area (for example, within cluster entities) to implement competitive strategies and business development [11].

In the case where the bank reacts to current output and inflation, knowledge about the policy rule doe not change local stability under learning.. This is because the learning process of[r]

economic growth, with a stable and low level of inflation (Tables 2 and 3). Our results confirm those found by Öztürk et al. (2014) by comparing these indicators before and after the crisis (from 2005 to 2011) in the developed countries. Central banks practicing this strategy also have a global vision that is not limited to maintaining inflation stability around the target, but also real economic stability Tapsoba (2012), Armand (2013), Ftiti and Hichri (2014). Tend to react more strictly to inflationary pressures and set their interest rates more strictly, Arnone and Remolli (2013), Aguir and Smida (2015), Armand (2017).

Promoting economic stability is partly a matter of avoiding economic and financial crisis. Economic stability also means avoiding the large swings in economic activity, high inflation, and excessive volatility in exchange rates and financial markets. Such instability can increase uncertainty and discourage investment, impede economic growth and hurt living standards. A dynamic market economy necessarily involves some degree of instability as well as gradual structural change. The challenge for policymakers is to minimize this instability without reducing the ability of the economic system to raise living standards through the increasing productivity, efficiency, and employment that it generates (Sokil and Panchenko, 2009).

Hasan and Dridi (2010) have examined the performance of participating banks and conventional banks during the recent global crisis by looking at the impact of the crisis on profitability, credit and asset growth, and external ratings in a group of countries where the two types of banks have significant market share. Their analysis suggests that participating banks have been affected differently than conventional banks. Participating banks„ credit and asset growth performed better than did that of conventional banks in 2008–09, contributing to financial and economic stability. External rating agencies„ re assessment of participating banks‟ risk was generally more favorable. Said (2012) has compared the change in efficiency of different banks, specifically participating and conventional, that occurred during the 2007 to 2009 economic downturn, using 2006 as baseline. Relative assets size and bank classification have used to compare the change in banks‟ efficiency. The research questions have addressed whether efficiency changes during the financial crisis of 2007-2009 were different between conventional and participating banks. In the analysis, data envelopment technique has been used to calculate the efficiency of these banks, and independent samples t test has been used to test the hypotheses. The results indicate that the financial crisis has the greatest impact on the efficiency of small commercial conventional banks compared to participating banks and large conventional banks.

Bondones interestingly also adds that contrary to the view that legal foundations are pivotal to financial and economic stability, that „it is precisely postulated that existing legislation are the consequence of the crisis - however such legislation is based on poor economic fundamentals.“ Such criticisms are definitely valid. Many firms (for example Northern Rock) were operating within the stipulated and recommended capital requirements of the Basel capital adequacy requirements but still crashed whilst other factors such as maturity mismatches (particularly relating to liquidity requirements) had not previously been accorded adequate focus. Hence the need for the introduction of the two new Basel liquidity requirements, namely the Liquidity Coverage Ratio (LCR) and the Net Stable Funding Ratio (NSFR).

Nevertheless, amid better macroeconomic conditions, members are still prone to sudden reversals in capital flows as reflected by exchange rate fluctuations. Although gradually waning, contagion effects still matters, particularly due to market perception. The vulnerability of domestic and regional economy to the sudden reversal of capital flows, poses a daunting policy challenge for many SEACEN members. Financial bouts in the last couple of years are evidence of the susceptibility of financial markets. Most domestic currencies of member countries, particularly those of ASEAN countries, have fluctuated widely with more pressure of appreciation on the USD (Figure 1.6 and 1.7). Emanating from the sub-prime mortgage problem in the US, many member economies have had to deal with fluctuations in capital flows and lessen its impact on the domestic economy. It is widely accepted in the era of economic openness that with a more open capital account regime and more independent monetary policy, the attainment and maintainance of monetary and financial stability are always the priority of central banks. Yet, experience has taught us that stability is not a panacea for economic problems faced by the members. All in all, this has brought many central banks to the more

The challenges of Africa and Nigeria in particular is wrapped in the key issues of economic growth and economic national development , the solution lies in the use of technology such as the field of mechanical technology education to provide millions of jobs that is necessary to create massive employment for the people which is consequential in the reduction of social restiveness and idleness of the larger population of citizens, enhancing a better society and a peaceful nation, which as a result of this attract further national development through foreign direct investments and local investment also. Technological advancements have provided comfort and joy to life. Mechanical technology has a direct and vital impact on the quality of life for all citizens.