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In economics, and maybe in all aspects of life, longer term tendencies can offer much more realistic picture about how phenomena happen than any short term and fresh data. Another equally important thumb rule is that building on easily observable, measurable and interpretable phenomena during any kind of analysis can result much precise knowledge. This is because we simply cannot always understand the ‘big picture’ c

In one of his last columns, Lord Skidelsky argued that fiscal stimulus is in order given the current status of affairs of the global economy, especially the United States (Skidelsky, 2013). Why Lord Skidelsky does recommend stepping aside our threats from deficits and accumulating public debt and trying to re-invigorate the states development function through fiscal stimulus? At first blush, the question of “why” has

195 years ago, Karl Heinrich Marx was born on this day. Among other things, Marx stated two things: (i) history repeats itself; and (ii) rich is just getting richer, while the poor become even poorer over time. Concerning the first tenet, recent financial turmoil which has been transmogrified into an once-in-a-lifetime economic crisis also reflects the view of Olivier Blanchard, who emphasised that after the devastat

As the Nobel-laureate George Akerlof together with his co-author Robert J. Shiller emphasised in the book Animal Spirits, the societal and economic development relies heavily on the trust infrastructure of the given country. Trust and confidence exuded by citizens towards state and governmental institutions are negatively affected by recent financial and economic crisis (Chart 1). Chart 1. Trust in National Governmen

Almost two years ago, Andrew Ang and Francis A. Longstaff pointed out that the empirical evidence suggests that systemic sovereign risk has its roots in financial markets rather than in macroeconomic fundamentals.[1] The crisis-ridden Italy, which is now facing high level of political instability as well, has been manoeuvring not so dramatically since the end of 2012 when the Prime Minister Mario Monti resigned. In o

By the end of January 2013, Hungary will have its new National Research and Development and Innovation Strategy 2020. Fostering all types of innovation (i.e. product and services innovation, process-, marketing-, and organisational novelties) both in the private and public sectors are of paramount importance in nurturing resilience necessary to our complex socio-economic system facing constant changes and challenges