Some unpleasant currency-devaluation arithmetic in a post Keynesian macromodel

The conventional view argues that devaluation increases the price competitiveness of domestic goods, thus allowing the economy to achieve a higher level of economic activity. However, these theoretical treatments largely neglect two important effects following devaluation: (1) the inflationary impact on the price of imported intermediate inputs, which raises the prime costs of firms and deteriorates partially or totally their price competitiveness; and (2) the redistribution of income from wages to profits, which ambiguously affects the aggregate demand as workers and capitalists have different propensities to save. New structuralist economists have explored these stylized facts neglected by the orthodox literature and, by and large, conclude that devaluation has contractionary effects on growth and positive effects on the external balance. Given that empirical evidence on the correlation between devaluation and growth is quite mixed, we develop a more general Keynesian–Kaleckian model that takes into account both opposing views in order to analyze the net impact of currency depreciation on the short-run growth rate and the current account. We demonstrate that this impact can go either way, depending on several conditions such as the type of growth regime, that is, wage-led or profit-led, and the degree of international price competitiveness of domestic goods.     

On the ‘Disclosure Initiative – Principles of Disclosure’: The EAA Financial Reporting Standards Committee’s View

Abstract

This paper summarises the contents of a comment letter produced by a working group of 12 academics in response to the International Accounting Standards Board (IASB) Discussion Paper on principles of disclosure. The comment letter was submitted by the Financial Reporting Standards Committee (FRSC) of the European Accounting Association (EAA). The work includes reviews of relevant academic literature of areas related to the various questions posed by the IASB in the Discussion Paper, including the ‘disclosure problem’ and the objective of the project, the suggested principles of effective communication, the roles of the primary financial statements and notes, the location of information and the use of performance measures. The paper also discusses the disclosure of accounting policies, the objectives of centralised disclosure, and the New Zealand Accounting Standards Board staff’s approach to disclosure.     

Profiling the segments of visitors to Portuguese protected areas

This study identifies the diversity of domestic visitors to Portuguese protected areas (PPA) based on benefit segmentation. The segments of PPA visitors are also compared with other nature-based tourist segments using some empirical benefit segmentation literature. Data were collected by means of a self-administered questionnaire and multivariate statistics techniques (principal components, hierarchical and K-means cluster analyses) were applied. Five distinct segments of visitors were identified based on the motivation for their visit and further characterized by the perceived importance of activities, facilities and services, frequency of visit and socio-demographics. Three segments are nature-focused and two are focused on activities or events. Only one segment shows specific interests and motivations associated with ecotourism and similar characteristics to international ecotourists; moreover, the reasons for the visit in one segment are unrelated to any of the motivations of nature-based tourism. Some implications for management are also described.     

Consumer and retailer perceptions of hypermarkets and traditional retail stores in Portugal

Since its appearance in the mid 1980s, the hypermarket is a symbol of the modernisation of Portugal. It has dramatically changed not only the retailing structure in this country but also Portuguese buying behaviour. To better understand these changes, personal interviews were conducted with 500 Braga consumers. In addition, a mailed survey was administered in the same market to 204 traditional retailers. The results show that, for consumers, the hypermarket is the preferred type of retail store for frequently purchased packaged goods, due to its low prices and convenient one-stop shopping. The perception of traditional retailers is that the hypermarkets affected them negatively. The comparative analysis suggests that, although consumers do not have a negative opinion about traditional retail, they do not share the same favourable opinion that traditional retailers have about themselves.