Estimation of the equilibrium exchange rate: The CHEER approach

The paper presents the results of an investigation where the concept of a steady-state level of the exchange rate is equated with the capital market equilibrium based on the CHEER approach. The empirical analysis concentrates on Poland, because in this case the assessment of the equilibrium exchange rate is of vital importance. The prospect of the Polish currency joining the ERM2 provokes controversies and requires research into the economic consequences of accession to the EMU. The international transmission mechanisms affecting the Polish economy are identified within the VEqCM framework. The calculations indicate that in the last years of the analyzed sample (i.e. up to December 2006) the zloty/euro exchange rate was slightly overvalued, and the steady-state level was found to have been adjusting to the value of 4.1 zlotys.     

Economic and Monetary Union – Current Fiscal Disturbances and the Future

At the moment of its setting up the Economic and Monetary Union did not meet the criteria of the optimum currency area. Neither does it today. The crisis of public finance in the eurozone results from the abandonment public finance reforms, lack of consistency in enforcing the decision of the Stability and Growth Pact and, additionally, economic recession and financial crisis. Further functioning of the eurozone will depend on radical reforms of public finance and structural reforms enhancing efficiency of the market as an adjustment mechanism, and competitiveness of economies. The very establishment of the European Stabilization Mechanism and European Financial Stability cannot make up for the above mentioned necessary undertakings. It is important to change the socioeconomic model existing in the EU member countries.     

Social strategies that work

Although most companies have collected lots of friends and followers on social platforms such as Facebook, few have succeeded in generating profits there. That's because they merely port their digital strategies into social environments by broadcasting their commercial messages or seeking customer feedback. To succeed on social platforms, says Harvard Business School's Piskorski, businesses need to devise social strategies that are consistent with users' expectations and behavior in these venues--namely, people want to connect with other people, not with companies. The author defines successful social strategies as those that reduce costs or increase customers' willingness to pay by helping people establish or strengthen relationships through doing free work on a company's behalf. Citing successes at Zynga, eBay, American Express, and Yelp, Piskorski shows that social strategies can generate profits by helping people connect in exchange for tasks that benefit the company such as customer acquisition, marketing, and content creation. He lays out a systematic way to build a social strategy and shows how a major credit card company he advised used the method to roll out its own strategy.     

Taxonomy methods in credit risk evaluation

In their bid for integration with the European Union, the countries of Central and Eastern Europe are faced with the need to introduce numerous significant improvements to their economic systems. A highly important role in this process is to make changes in the existing banking systems. The credit risk evaluation method presented here, using taxonomic measures to plot so-called credit risk maps, may be used to develop sound principles of credit policies. It is a proposition that could solve one of the many problems arising in the course of adaptation of banking systems in Central and Eastern Europe to conditions of market economy.     

On Hypothesis about the Second Eigenvalue of the Leontief Matrix

If an arbitrarily positive eigenvector is repeatedly premultiplied by a positive matrix, then the result tends towards a unique, positive (Frobenius) eigenvector. Brady has demonstrated that the expected absolute magnitude of the estimate of the second largest eigenvalue of a positive random matrix (with identically and independently distributed entries) declines monotonically with the increasing size of the matrix. Hence, the larger the system is, the faster is the convergence. Molnár and Simonovits examined Brady's conjecture in the case where entries of a stochastic matrix are close to 1/n. We prove this hypothesis for any stochastic and positive matrix.     

Resolvable semi-balanced incomplete split-block designs

A method for constructing some new incomplete split-block designs with desirable properties is given. The new class of the designs is characterized with respect to the general balance property. Moreover, the efficiency factors of the designs proposed are given.Received: July 2003 / Revised: November 2003     

Political competition and policy choices: the evidence from agricultural protection

This article investigates whether political competition plays an important role in determining the level of agricultural protection. In order to do so, we exploit variation in political and economic data from 74 developing and developed countries for the post‐war period. We use two measures of political competition: one that captures the extent to which political power can be freely contested regardless of election results and one based on vote share at last parliamentary elections. Our results, based on static and dynamic panel estimators, show unambiguously that the higher the level of political competitions is, the higher the agricultural protection.     

Geographic patterns of Poland’s FDI: the investment development path perspective

The purpose of the present study is to incorporate geographic analysis of FDI into the classic IDP model. By supplementing the traditional analysis of the net outward investment (NOI) position with an analysis of geographic patterns in inward and outward FDI, the authors strive to offer a better explanation of Poland’s current NOI position and provide more in-depth support to some necessary policy recommendations. Hence the main contribution of this study to the international business scholarship is two-fold. It (1) further develops the IDP research methodology; and (2) provides a better understanding of the idiosyncratic nature of the IDP of Poland.