Labour Market Flexibility – Impact on the Economy

There is a widespread consensus among mainstream economists that more labour market flexibility (like in the US) is more likely to be associated with better economic performance because of the more fertile ground for innovation and productivity compared to the welfare states of Europe where labour market has a stricter feature (See Chart 1). As Sapir noted: “The stricter the employment protection legislation of a mod
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Austerity vs. Stimulus – The Debate Continues

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
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History Repeats Itself: First as Tragedy, Second as Farce?

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
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The Concept of Innovative Fiscal Policy: Theory and Empirical Evidence

Kovács, O. (2011): The Concept of Innovative Fiscal Policy: Theory and Empirical Evidence. Competitio, Vol. 10, No. 2. (December, 2011) This contribution addresses the question of what are the main constituents of an innovative fiscal policy in the context of sustainability. We apply the concept of sustaining and disruptive innovation to fiscal policy. On the one hand, innovative fiscal policy is able to be sustainin
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Public Finance – Deficit, Debt and Sustainability

Kovács, O. (2011): István Benczes – Gábor Kutasi (2010): Költségvetési pénzügyek. Hiány, államadósság és fenntarthatóság (Public finance. Deficit, debt and sustainability) (Review). The Economic Review, Vol. 58. pp. 383-387
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