Search results
1 – 10 of over 2000
The aim of this paper is to examine the proposition that the monetary reform movement has correctly identified the central importance of money‐issue whilst, simultaneously, not…
Abstract
Purpose
The aim of this paper is to examine the proposition that the monetary reform movement has correctly identified the central importance of money‐issue whilst, simultaneously, not appreciated the sophistication of previous monetary theorists.
Design/methodology/approach
The Classical, Keynesian and Marxian monetary traditions are explored within the context of the views of the monetary reformers, as espoused by Stephen Zarlenga of the American Monetary Institute.
Findings
The monetary reform movement has presented a far too simplistic view of previous monetary theorists yet identified an underdeveloped arena for research.
Practical implications
The development of understanding towards a state theory of money.
Originality/value
The paper contributes to theoretical knowledge regarding the political economy of money creation.
Details
Keywords
Fernando Lera-López and Manuel Rapún-Gárate
This paper analyses the determinants of sports participation and attendance in 40 sports and recreational activities in Spain. Ordered probit models are used to identify…
Abstract
This paper analyses the determinants of sports participation and attendance in 40 sports and recreational activities in Spain. Ordered probit models are used to identify determinants in each case and to test for possible relationships. The results show that the two types of involvement, participation and attendance, are very different, the former constrained by economic, sociological and psychological variables such as gender, age, time availability and motivational factors, the latter explained by variables such as age, gender and size of household.
Details
Keywords
Shahid Bashir and Tabina Ayoub
This paper is an attempt to re-examine the validity of the Twin Deficit Hypothesis in the Indian economy, which is characterised by mounting inequality and liquidity constraints…
Abstract
Purpose
This paper is an attempt to re-examine the validity of the Twin Deficit Hypothesis in the Indian economy, which is characterised by mounting inequality and liquidity constraints. The authors augment the econometric analysis with two important mediating variables, exchange rate and trade openness, to analyse their impact on current account deficit.
Design/methodology/approach
The authors have used a ground-breaking asymmetric cointegration technique proposed by Shin et al. (2014) to investigate the short-run and long-run asymmetric nexus between gross fiscal deficit and current account deficit. In addition, the study has used asymmetric dynamic multipliers to see the dynamics of nonlinear adjustment from disequilibrium in the short run to equilibrium in the long run. The study has also used generalised impulse response functions to check the robustness of our cointegration results.
Findings
Using annual time series data from 1970 to 2018, the empirical exercise validates the presence of asymmetries in the Twin Deficit Hypothesis for the Indian economy. This study's robust findings demonstrate that the two deficits are asymmetrically related in the long run. The authors also found that exchange rate asymmetrically affects current account deficit thus validating the asymmetric J-curve phenomenon. From the causality analysis, the authors infer that there is a weak unidirectional causality running from fiscal deficit to current account deficit.
Research limitations/implications
Fiscal deficit may cause current account deficit via changes in other macroeconomic variables that were not taken care of in this study. Therefore, the estimation techniques used in the present study might suffer from the issue of omitted-variable bias. Further research should include other macroeconomic variables where the twin deficit nexus is also influenced by other relevant variables. This will help in disentangling the indirect transmissions by which fiscal deficit translates into current account deficit.
Practical implications
The results from our econometric exercise strongly suggest that the twin deficits are asymmetrically related. From a policy perspective, the asymmetric twin deficit nexus offers strong policy implications for the development of policies that are flexible enough to respond to shifts in internal and external sector dynamics. While framing the mechanism of fiscal prudence, policymakers in emerging countries like India must take into account the regime-changing behaviour of twin deficits.
Originality/value
The present paper is a significant contribution to the existing body of literature by being the first study in India which has analysed the Twin Deficits phenomenon in a nonlinear framework with the incorporation of asymmetric exchange rate dynamics in the model.
Details
Keywords
Argues that Joan Robinson′s interest in teaching and her students wasinherently connected to her views on the nature, scope andmethodology of economics. More specifically, like…
Abstract
Argues that Joan Robinson′s interest in teaching and her students was inherently connected to her views on the nature, scope and methodology of economics. More specifically, like the classical economists, she defined economics broadly as the study of the causes of material wealth and growth rather than the more narrow science of allocation of scarce resources. Like J.S. Mill, A. Marshall and J.M. Keynes, she viewed economics as a moral science rather than excluding ethics and politics from economic considerations. Most ⊃4importantly, she believed in the central role of history and thus uncertainty in economic analysis. This emphasis on history in turn implied that she did not consider the tools of economic analysis to be universally applicable across time and space. It is argued here that these beliefs directly affected her views on teaching economics.
Details
Keywords
Rudra P. Pradhan, Mak Arvin, John H. Hall, Sara E. Bennett and Sahar Bahmani
The purpose of this paper is to shed light on the age-old trade-and-economic-growth controversy. The authors do so by utilizing the data relating to the G-20 countries between…
Abstract
Purpose
The purpose of this paper is to shed light on the age-old trade-and-economic-growth controversy. The authors do so by utilizing the data relating to the G-20 countries between 1988 and 2013.
Design/methodology/approach
The authors seek to establish the formal statistical links between openness to trade and economic growth in the context of interactions with financial depth, gross capital formation, and foreign direct investment. The authors use a panel vector autoregressive model to obtain the estimates. The authors check for the robustness of the results.
Findings
The authors find that all the variables are cointegrated. That is, there is a long-run equilibrium relationship between the variables. Moreover, trade openness, financial depth, gross capital formation, and foreign direct investment are all causative factors for the economic growth of the G-20 countries in the long run. At the same time, the short-run results demonstrate that there is a myriad of causal links between these variables.
Practical implications
The decision makers in the G-20 countries wishing to encourage economic growth in the long run should pay close attention to trade openness, financial depth, gross capital formation, and foreign direct investment inflows to their countries.
Originality/value
The authors study an important group of countries over a long span of time, using advanced panel data techniques. The results demonstrate that future studies on economic growth that do not simultaneously consider trade openness, financial depth, foreign direct investment, and gross capital formation will offer biased or misguided results.
Details