EXCHANGE RATE-BASED STABILIZATIONS: A LITERATURE REVIEW

The exchange rate-based stabilizations (ERBSs) that have been undertaken in chronic inflation countries have generated a controversial body of literature regarding the effects of disinflation programs, especially those on real consumption and output. This survey provides an extensive overview of the literature on ERBS. The paper covers various empirical studies that have attempted to document the macroeconomic regularities associated with ERBS, discussing both their strengths and their weaknesses. It analyzes diverse theoretical models that have been put forward to replicate the business cycles associated with ERBS, and sheds light on which models perform better using real data. The results suggest that durables incorporated weak credibility and sticky price model proves to be most compatible with the empirical regularities observed in the course of ERBS.     

Increasing foreign supply of intermediates and less reliance on domestic resources: The production structure of the Swedish economy, 1957–1980

Historical comparisons of the Swedish production structure is undertaken in this paper. The total series of Swedish input-output data is, for the first time, exploited within the Leontief open static model and by use of the method of triangulation. Reliance on foreign supply of intermediates increased in the Swedish economy during the post-war period and the traditional dominance of production chains based on iron ores, forests and hydropower in the domestic supply of intermediates reduced in favour of chemical products and services. Also, labor employment declined significantly relative to the employment of capital in production. Some implications for the effects of aggregate economic policy are discussed.     

Consumer power: Enabling and limiting factors

A conceptual framework is developed for the study of factors that enable consumers to exert power, or prevent them from doing so, at different levels of aggregation and organization. The framework has four main categories: Constellation of Actors and Interests, Context of Interaction, Process of Interaction, and Outcomes. It is hoped that by means of such a framework, it will be possible to systematize and compare various cases in which attempts have been made — successfully or not so successfully — at exercising consumer influence. Such comparisons can provide the basis for hypotheses and generalizations as to factors that determine the outcomes of uses of consumer power or influence. The application of the framework is illustrated by means of a case study from Finland: that of a conflict between consumers and banks. Advantages and limitations of the approach are outlined in the final section.

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Die Macht der Verbraucher: förderliche und hinderliche Einflußfaktoren

Zusammenfassung Die Autoren entwickeln einen begrifflichen Bezugsrahmen zur Analyse der Faktoren, die Konsumenten auf verschiedenen Ebenen der Aggregation und der Organisation positiv oder negativ darin beeinflussen, Macht auszuüben. Der Bezugsrahmen hat vier Hauptkategorien: die Konstellation der Akteure und Interessen, der Zusammenhang der Interaktion zwischen den Akteuren, der Prozeß der Interaktion und die Ergebnisse.Die Autoren erhoffen sich von dem Bezugsrahmen die Möglichkeit einer Systematisierung und eines Vergleiches verschiedener Fälle, in denen die Ausübung von Konsumenteneinfluß versucht wurde — sei es mit oder ohne Erfolg. Solche Vergleiche können bei der Ableitung von Hypothesen und Verallgemeinerungen im Hinblick auf Faktoren nützlich sein, die den Erfolg der Ausübung von Konsumentenmacht beeinflussen. Die Anwendung des Bezugsrahmens wird beispielhaft an einer Fallstudie aus Finnland demonstriert, an einem Konflikt zwischen Konsumenten und Banken. Abschließend versucht der Beitrag die Vorteile und Grenzen des Ansatzes abzuschätzen.

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Sigmund Grønmo is Professor of Sociology, Department of Sociology, University of Bergen, Hans Holmboes gate 22, N-5007 Bergen, Norway. Folke Ölander is Professor of Economic Psychology, The Aarhus School of Business, Ryhavevej 8, DK-8210 Aarhus V, Denmark.This paper is part of the output from a research project sponsored by the Consumer Policy Committee of the Nordic Council of Ministers. The project was carried out by the authors in collaboration with Arild Danielsen, Department of Sociology, University of Oslo, and we have drawn heavily on his erudition and insights in preparing this paper.The paper first appeared in Enhancing Consumer Choice, Proceedings of the Second International Conference on Research in the Consumer Interest, Robert N. Mayer, Ed., American Council on Consumer Interests, Columbia, MO, 1991, and is published here with the permission of the ACCI and the Editor of the Proceedings.     

Computing open-loop noncooperative solution in discrete dynamic games

The purpose of this paper is to introduce a new algorithm for the approximation of non-quadratic, non-linear open-loop Nash Cournot equilibrium in a difference game of fixed duration (multiperiod) and initial state. The algorithm based on adaptive search procedure called genetic algorithm has been used to optimize strategies for N-person dynamic games. Since genetic algorithms require little knowledge of the problem itself, computations based on these algorithms are very attractive to complex dynamic optimization problems. The empirical evidences are also provided to show the success of the algorithm developed. A typical example in US macroeconomic policy selection for 1933-1936 yields evidence of political inference in the economy.     

Strategic Choices at Entry and Relative Survival Advantage of Cooperatives versus Corporations in the US Bio‐Ethanol Industry, 1978‐2015

The sustainability of cooperatives versus corporations is hotly contested. We propose that strategic choices at entry can help to explain the endurance of these two governance modes. We hypothesize that cooperatives have a survival advantage if their major drawback – high coordination costs – is curbed by high levels of member engagement at founding. Our analysis of survival rates in the US bio‐ethanol industry shows that cooperatives outlive corporations (1) if investment size at founding is large (strong financial engagement), (2) if they enter de novo instead of de alio (strong product‐market engagement) and (3) if the cooperative venture has been carefully planned from the start (greenfield entry) instead of built upon the acquisition of an existing plant (strong venture‐building engagement). These findings caution against the view that a particular mode of governance is superior or inferior to another in all circumstances.     

Time‐Varying Capital Requirements and Disclosure Rules: Effects on Capitalization and Lending Decisions

We investigate how banks’ capital and lending decisions respond to changes in bank‐specific capital and disclosure requirements. We find that an increase in the bank‐specific regulatory capital requirement results in a higher bank capital ratio, brought about via less asset risk. A decrease in the requirement implies more lending to firms but also less Tier 1 capital and higher bank leverage. We do not observe differences between confidential and public disclosure of capital requirements. Our results empirically illustrate a tradeoff between bank resilience and a fostering of the economy through more bank lending using banks’ capital requirement as policy instrument.     

„Full Range Leadership“-Modell: Kritische Würdigung und Anregungen zur Weiterentwicklung

Zusammenfassung  Transformationale Führung als inspirierendes und emotional aktivierendes Führungsverhalten erf?hrt aufgrund ihrer Wandlungsfunktion in gesellschaftlichen Umbruchsphasen eine sehr hohe Wertsch?tzung, auch wenn ihr Gegenüber, die transaktionale Führung, in der Praxis derzeit wohl noch eine st?rkere Verbreitung besitzt. Ein Abgleich transformationaler und zugleich transaktionaler Führung in ihrer fortentwickelten Form als Full Range Leadership Modell mit den Charakteristika des Ph?nomens Führung offenbart zentrale Schwachstellen. An diesen Punkten setzen überlegungen zu einer Aufwertung transaktionaler Führung mittels einer Integration effektiven aufgaben-, beziehungs- und wandlungsorientierten Verhaltens in das Full Range Leadership Modell an. Zudem bietet ein „führungspraktischer“ Ausblick einen Denk- und Handlungsansatz, der von einem wechselseitigen Einflussverh?ltnis ausgeht und Situationsfaktoren modellimmanent berücksichtigt.

A neglected contribution to monetary theory in the eighteenth century: Anders Wappengren on paper money,floating exchange rates,and purchasing power parity

Abstract

Between 1789 and 1803 the National Debt Office issued unbacked interest bearing notes whereas the Bank of Sweden issued silver backed notes. The massive note issuance by the National Debt Office led to different exchange rates and two units of account. The situation gave rise to an early paper standard theory formulated by Anders Wappengren, a well-read merchant who was strongly influenced by Adam Smith and the French physiocrats. Wappengren had a firm understanding of monetary systems and the adjustment mechanism under floating exchange rates, including such concepts as purchasing power parity and price stickiness.