Conceptualization of the real economy and Islamic finance: Transformation beyond the asset‐link rhetoric

A key factor behind the chronic crises in modern economies is the growing dominance of financialization and the resulting disconnect between the real economy and the financial sector, to which conventional financial industry is a key contributor. In contrast, Islamic finance claims to be real‐economy‐oriented, as all transactions must be asset‐linked (asset‐backed or asset‐based). However, is Islamic Finance based on proper conceptualization of the real economy? What is the real economy and its dynamics? How Islamic finance is interfaced with the real economy? In this article, the claimed real‐economy‐orientation is examined by presenting a conceptualization of the real economy and then evaluating the related discourse accordingly. The analysis presented, especially for noneconomists, exposes a serious gap between the claims about Islamic finance and the real economy it is supposed to advance. Appropriate conceptualization of the real economy can help the industry to be relevant and effective for broader socioeconomic transformation.     

The impact of the financial crisis on the real economy

The cost of the financial crisis to the real economy has so far remained underexamined, probably because of the difficulty in making such an assessment. The crisis was precipitated by an unsustainable bubble that artificially inflated economic figures, so what should be used as a benchmark for measuring the effects of the crisis on the real economy? How reliable are current estimates of the output gap? Could overestimating this indicator lead to underestimating the current risk of inflation? Finally, what effect will the crisis have on the declining long-term productivity gains in Europe and the USA, and what does this mean for potential output?     

The development finance challenges facing Latin America in the 1990s

Growth in Latin America in the 1980s was much slower than it had been in previous decades and real resource transfer has been negative since 1983. What are the chances that this situation will change in the nineties? Where can the necessary development finance come from? Can bottlenecks be avoided?     

Indo-Pakistan strife at the poor man’s cost

What is the new problem of the so called “Bangla Desh”? Is it a real revolt of the East Pakistanis against the West Pakistanis or is It rather a strife between India and Pakistan? These are some of the questions arising from the Indo-Pakistan conflict.     

Solutions to the Employment Problem

Financial crisis has caused lots of real economies to close down, which leads to a great number of people lost jobs in turn. Increase in unemployment rate, layoffs and cut in salaries, all related news are on newspapers, televisions and the internet every day, causing a panic to the world. Are we in an economic depression like 1930s？ And isn＇t there anything we can do against this？     

Primary commodity prices and the real exchange rate: the case of Australia 1900–91

How do real exchange rates of primary commodity exporters react to changes in the relative price of these exports? The relationship between these variables is examined using ninety-two years of Australian data. There is a significant positive correlation. However, the Australian real exchange rate does not display the downward trend that has been observed in the relative price of primary commodities. This is consistent with the hypothesis that the apparent long-run decline in the relative price of primary commodities is an artefact of inadequate quality adjustment in the price series for manufactures.     

Continued growth in the world economy

After the stock market crash in the autumn of 1987 even optimists were predicting a sharp slowdown in the growth of the world economy in 1988. In the event, the GNP of the industrialised countries increased by 4% in real terms last year. What is the outlook for 1989?     

Does the exchange rate regime matter for real shocks? Evidence from windstorms and earthquakes

Does the choice of exchange rate regime affect an economy's adjustment to real shocks? Exploiting the unpredictability and economic exogeniety of windstorms-hurricanes and typhoons-and earthquakes this paper assesses the often contrasting answers found in the theoretical literature. There is robust evidence that exchange rate flexibility helps an economy better adjust to real shocks. And consistent with the channels emphasized in the classic literature on exchange rates and shocks, differences in the behavior of the export sector help explain the different reactions between the two regimes.     

International trade in a system of floating exchange rates

Since the introduction of the system of floating exchange rates policy-makers have been troubled by uncertainties regarding the effects of this system on international trade. Do exchange rate changes affect trade flows? Can governments manipulate exchange rates? Have countries been “injured” by exchange rate changes? What are the real costs of international monetary instability? Answers to these key questions are given in the following article.     

Reducing working hours in the context of growing real capital mobility

Can the reduction of working hours be a suitable policy instrument to reduce unemployment? The following article presents a model of the effects of such a reduction—without offsetting adjustments to wage rates—on unemployment in the context of growing real capital mobility between countries and discusses the consequences for economic policy.     

China Fully Embracing the WTO——An interview with Joseph Michael Finger, former Lead Economist and Chief of the Trade Policy Research Group at the World Bank

Q:An expert at the WTO recently told me that China's accession into the WTO has boosted public awareness, public consciousness of the human condition, the freedom of public expression and the administrative functions of the Chinese government. What is your view of the real impact of China's accession into the WTO?     

Lessons from the Financial Crisis: New Rules for Central Banks and Credit Rating Agencies?

The US mortgage crisis, which has spiralled into what is now seen as the most serious global financial upheaval since the 1930s, has provoked criticism of the Federal Reserve for its failure to recognise, and act on, the real estate bubble. Credit rating agencies, too, have come under heavy fire for having actively contributed to the present crisis. Should central banks pay special attention to, and try to influence, the development of asset prices? Is statutory regulation of rating agencies required? If so, what form should it take? Is the European Commission’s recently issued draft up to its purpose?     

The chances for a thorough reform of the common agricultural policy

That the Common Agricultural Policy of the European Community is in need of reform is by now commonly accepted. But all moves for a reform on the political level have been postponed until after the French elections in the spring, a fact which highlights the political problems. Is there a real chance of a thorough reform of the CAP?     

How do manufacturing exports react to the real exchange rate and foreign demand? The Chilean case

How do manufacturing exports react to the real exchange rate and to foreign demand? We investigate this question with a Chilean panel data spanning from 2003Q1 to 2016Q4, using publicly available data. In the long term, we find that exports strongly co-integrate with external demand, whereas not with the level of the real exchange rate. The short-run elasticities of manufacturing exports differ in size: (a) the elasticity of foreign demand—approximated by trading partners' activity aggregates—ranges between 0.8 and 1.4; and (b) the elasticity with respect to the bilateral real exchange rate is comprehended in the interval [0.4–0.6]. Core estimated elasticities pass usual robustness checks. The fall in manufacturing exports' growth in 2014–16 is consistent with a persistent slowdown in foreign demand, which has been partially offset by an average depreciation of the bilateral real exchange rate (with respect to destination countries of these exports). The transience of the effect of the real exchange rate is coherent with its exhibited stationarity and also consistent with its role of shock absorber.     

Trade liberalization and adjustment in Argentina

This paper looks at trade liberalization attempts in Argentina since 1970, with particular attention to the 1991?–?98 period, estimates the size of the adjustments required by the changes in the trade regimes, and looks at the degree of adjustment attained as manifested by the real effective exchange rate.     

Strukturelle Verzerrungen im Währungskrieg

Die chinesische W?hrungspolitik steht weltweit in der Kritik. Die Dollarbindung des Yuan hat sich jedoch als Stabilit?tsanker für die ostasiatische Region bew?hrt. Der globale Handel profi tiert von der stabilen Wirtschaftsentwicklung in dieser Region. Allerdings führt das Festhalten an einem real unterbewerteten Yuan zu Verzerrungen der Wirtschaftsstruktur bei China und seinen Handelspartnern.     

我国货币中性的实证研究

国际金融危机爆发以来,降低利率、增加流通中货币成了各国政府解决金融危机的共同做法,货币对于经济的积极作用再次引起人们的关注。过于宽松的货币政策能持续多久,会不会造成严重的通货膨胀,进而破坏经济的健康发展,也同样引起人们的关注。本文对我国1978-2009年的流通中货币、利率、物价指数对GDP的影响进行了实证研究,结果表明流通中货币不是实际GDP增长的格兰杰原因,货币是中性的;GDP的实际增长率是实际利率的格兰杰原因,名义利率和GDP没有因果关系;GDP和物价指数没有格兰杰因果关系,通货膨胀不能促进经济的增长。     

SNS应用于艺术品行业电子商务营销模式探讨

近年来行业电子商务发展越来越成熟,但是由于艺术品行业本身所具有的特殊性,发展电子商务困难重重。作为Web2.0时代重要应用之一:SNS(社会化网络网站,社会化网络软件,社会化网络服务),通过其真实网络注册信息,用户将真实的人际关系从线下搬到线上,能有效为发展电子商务聚集人气和信任度。将SNS与艺术品行业电子商务结合起来,构建一种新型的电子商务营销模式:SNS社区与交易商城结合。试图建立艺术品行业社区化电子商务,来带动艺术品行业电子商务的立体化、多元化的发展。     

The Decline in the Natural Rate of Interest

With the Federal Reserve widely expected to begin normalization of monetary policy in the wake of the Great Recession—perhaps in 2015—an important question for public policy and private-sector planning is what the “new normal” for interest rates is likely to be. In particular, are real interest rates likely to be lower in the future than in recent decades? An investigation through the use of the Kalman filter shows that the natural rate of interest—the real federal funds rate consistent with the economy operating at its full potential—has declined since 1980, especially after the Great Recession. This will have important implications for monetary policy and for the private sector, including recognition that the natural rate of interest is not fixed.     

Go up or down?——Look into the Real Estate Price After the Olympics

2008 Beijing Olympic Games to the Chinese is not only a unique event, but also will influence many aspects of China. To the real estate industry, the effect of the Olympic Games will play an important role in a short period. How about the effect to Beijing＇s housing price？ Does it continue to go up or turn down？ This is the main concern for majority of those in this industry and consumers.