Spirits and States

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
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The Italian (Economic) Job

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
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Innovation’s inherent “malady”

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
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