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Theory suggests that as long as a country runs a balanced budget regime, there is no linkage between fiscal variables and the interest rates. In the case of fiscal expansion that is not sufficiently covered by government revenues, however, the government has two options to finance its deficit: printing money or additional borrowing. Both options lead to an increase in the risk premia on government bonds. One strand of literature focuses on a currency crisis that emerges as a necessary outcome in light of contradictions between fixed exchange rate, and fiscal and financial fundamentals. If government bonds are denominated in domestic currency, the government can reduce their real value by higher inflation or by devaluation of the national currency. In order to bear this risk foreign investors require a currency risk premium. Governments can eliminate the risk of currency devaluation by issuing bonds denominated in foreign currencies, but the default risk remains and it depends on public finances. Another strand of the literature looks at the relation between fiscal variables and government bond yields in the framework of portfolio balance model.

Reforms of the Vietnamese economy have been widely credited for stabilizing the value of the state-issued currency in the marketplace. Nevertheless, how people evaluate the Vietnamese dong as a symbolic form can be read as a symptom of shifting economic and political forces, above all in Ho Chi Minh City, a city associated with commerce. Through three ethnographic cases – the introduction of “big money,” the scarcity of “new money” in 2002, and the campaign to build Automated Teller Machines (ATMs), this paper analyzes the contentious politics around symbolic exchange that shape confidence in Vietnamese currency.

The Economic Commission for Latin America (ECLAC) was created in the post-war, when Latin-American countries were facing disequilibrium in international trade, capital shortage and rising inflation. The ECLAC intended to aid in the definition of a development strategy that could deal with these issues. Between the first ECLAC publications, three of them are considered to be “the trilogy that founds the structuralist theory” (Bielschowsky, 2011, p. 8): the Latin-American Manifesto, the Economic Survey of Latin America-1949, and Theoretical and Practical Problems of Economic Growth. These documents set the center-periphery relation as a conditioning feature for the behavior of national economies, and describe the trajectory of terms of trade deterioration and its consequences to peripheral nations. The objective here is to argue that this trilogy contains an analysis of inflation in underdevelopment, and anticipates the main elements of what would later be called the structuralist theory of inflation. The introduction depicts the context that originated the ECLAC and the debates on how to foster post-war Latin-American development. The second section analyzes the Singer Report and the Latin-American Manifesto with regard to the causes of inflation in peripheral nations. The third section discusses the Economic Survey of Latin America – 1949, with a focus on the consequences of technology incorporation in underdeveloped structures. Section four explores “Theoretical and Practical Problems of Economic Growth” and the issue of inelastic production. Section five surveys the incorporation of Prebisch’s approach into the Brazilian debate. The conclusion sets Prebisch’s contribution in perspective with other structuralist authors.

This paper extends a recent study on financial dollarization of Broda and Levy Yeyati (2003) by introducing a lending of last resort intervention contingent both on banks’ portfolio currency composition and on banks’ monitoring effort. We show that when the lender of last resort commitment to intervene is matched with some operational discretion, according to a “constructive ambiguity” approach, then the provision of emergency liquidity may be crucial to enable distressed, but well-behaved banks, to survive and finance “high quality” investment projects.

The tourism marketing environment consists of internal and external forces which could impact the organisations’ performance. To be successful, companies must adapt to ongoing trends and developments in their macro- and micro-environments. When organisations scan their marketing environment, they will be in a position to deal with any possible threats from the market and to capitalise on any available opportunities. Therefore, this chapter explains the external environmental factors of tourist destinations, including political, economic, social and technological influences. It also considers their internal environmental factors, including capital structures, resources, capabilities and marketing intermediaries, as it identifies competitive forces from differentiated or low-cost service providers.

This paper examines the transformation of Syrian political economy from 1970 until 2005. I argue that Syria has undergone two important phases of political and economic transformation, from building a centralized state and economy in the early 1970s to embarking on the path of market economy in the early 1990s. With the logic of competitiveness guiding the direction of economic development, the socio-economic changes of the mid-1980s and after have corresponded with an important process of class and state formation. After a brief discussion of the current transition in Syria, the following sections of the paper attempt to provide a critical study of the different strategies for economic development. Section two examines the process of state and economic centralization of the 1970s and 1980s and highlights the contradictions of this period. Section three assesses the impact of economic liberalization through a study of competitiveness in the economic policies of the 1990s and 2000. The final section examines the economic and political impasse that Syria has been faced with. In conclusion, I argue that the current path of market economy as the strategy for capital accumulation has not resolved the socio-economic problems that Syria has faced in the last two decades. This strategy will continue to face contestation by marginalized groups such as factions of the Baath Party, landless peasants, workers and small producers as Syria becomes even more integrated into the regional and global economy.

The chapter analyzes the modern features of the movement of foreign investments and the participation of the Republic of Belarus in this process. Trends in foreign direct investment (FDI) flows in the context of different countries and the structure of investment capital in our country have been considered. A greater priority in attracting investments in large projects in the form of equity participation compared to debt instruments and profits refinancing has been justified. The largest projects with foreign investments as well as features of outgoing FDI have been considered. The activities of foreign transnational corporations and the factors hindering the internationalization of business activity of domestic enterprises have been studied in detail. The priority areas of government in activities to promote the attraction of FDI to the Republic of Belarus have been analyzed.

The handicraft industry has been contracting in recent times because of external competition and a preference for foreign-made crafts by consumers. Kiliim, ¹ an Egyptian social enterprise and lifestyle brand, has initiated the process of revival needed in the industry with modern designs of the traditional crafts (local bed covers, curtains, bedding, rugs, bathmats, cushion, throw pillows dining and living cloths). This case provides an analysis of the company, beginning with how the idea of the kilim product was conceived and the dilemma they are currently facing. Although Kiliim, with various kilim product offerings, has made significant inroads in the consumer market, it must continue to adopt innovative strategies to sustain its survival in the market. With globalisation rapidly changing the dynamics of market entry and penetration, indigenous organisations must be innovative with their product and service offerings. Suggestions are made for the sustainability of the indigenous craft industry in Egypt and Africa.