THE POUND AND THE PUNT REVISITED

Whereas the pound has remained outside the EMS for the last ten years, the Irish punt has been a fully participating member since the inception of the EMS in March 1979. As such the punt experienced the depreciation of the EMS bloc against the pound in 1980-1 and, largely because of this, it suffered from a higher rate of inflation in the first half of the 1980s. But against a background of greater intra-EMS stability, Irish inflation has fallen steadily. It is now closer to German inflation than at any time in the last twenty years and in the nearly three years since the last EMS realignment, has been well below inflation in the UK. At the same time output in Ireland has advanced steadily and the trade balance has moved into surplus. The Irish experience has therefore paralleled that of the EMS as a whole. After a shaky start, the EMS has proved to be a powerful force for convergence and by switching from a fixed link to the pound to one against the DM, the Irish economy is being transformed into a relatively low inflation economy. The contrast with the pound panty period is marked. It is different not to conclude that the UK' recent economic performance, particularly on inflation, would have been significantly improved if it too had chosen the route of full EMS membership.     

Luxury hotels mushrooming and extravagant governments

This paper empirically examines the effect of nontax revenue on demands for luxury hotels in China where the strict public financial supervision is not well-established. Results indicate the nontax revenue significantly influences luxury hotel demands across the country and that government demands have crowding out effect on private demands for luxury hotels, all of which appear more salient in Chinese underdeveloped areas with more severely deficient public financial supervision.     

New technology based firms and the emergence of new industries: some employment implications

This article challenges conventional theories on the role of NTBFs in the growth of new industries. Its'community dynamics'approach is an alternative to the SPRU model of'dynamic complementaries'and argues that while NTBFs are crucial, their capacity for employment generation is low.     

THE PROBLEM OF IMPUTING A CHARGE FOR FARMERS‘ MANAGEMENT: A COMMENT

In a recent article in this journal, Simon (1979) presented a model intended to provide a basis for the empirical estimation, from FMS data, of the value of the farmer's management input. Unfortunately, Simon's model can be used for this purpose only with the aid of some apparently arbitrary assumptions which are produced without critical examination or empirical evidence. We believe that his approach reveals a mistaken view of how farmers actually behave and a confusion as to the problem and purpose of imputing costs to non-traded items.     

Federalism as a Public Good

This paper suggests that stabilizing federalism is like solving a public good provision problem. It reviews results in the public good provision literature that are relevant for federalism, and discusses the implications of these results for the institutional design of federalism. JEL classification: H110, H770, P160     

THE BUDGET

Mr Clarke's first unified budget is politically highly astute. He has skilfully defused the household fuel VAT row. As we predicted in the October Economic Outlook, he has taken advantage of lower inflation and the public pay freeze to cut public spending with tough curbs on social security. This, together with the absence of measures against the pensions industry, has pleased the markets. But it will prove hard, though not impossible, to hit the new public spending targets beyond next year, particularly if inflation picks up. The further reduction in mortgage tax relief, the modest extension of the tax base, the action on tax avoidance and the introduction of road charges all make good economic sense, though the absence of measures to give the Bank of England more freedom for manoeuvre in monetary policy is disappointing. There is still the risk that the large tax increases on consumers bequeathed by Mr Lamont will slow recovery in 1994, but overall this is a budget that is good for the economy and good for Mr Clarke. It paves the way for further interest rate cuts of ½-1%. In this forecast release we consider the details of the Budget, dissect the Treasury forecast, and consider the plausibility of the spending targets, especially in later years.     

Tax‐Time Savings among Low‐Income Households in the $aveNYC Program

This article explores savings outcomes for participants in the $aveNYC tax‐time matched savings program compared with a group of New York City tax filers who were not offered the program. $aveNYC was administered at Volunteer Income Tax Assistance sites during the 2008–2010 tax seasons. The program offered taxpayers the opportunity to open a savings account with their tax refund and receive a 50% match on their initial deposit. The study's primary outcome is savings held by respondents 6–11 months after receipt of matching funds. We compare participants in the 2009 program cohort to a comparison group on the following outcomes: level of savings, having nonzero savings, and having enough savings to cover one or two months of expenses at current consumption levels. We find significant differences on savings levels, the presence of any savings, and the likelihood of having savings to meet one month's expenses.     

The Link Between Diversity and Equality Management Practice Bundles and Racial Diversity in the Managerial Ranks: Does Firm Size Matter?

Invoking strategic human resource management (SHRM) theory and tenets of the resource‐based view of the firm, we explore how two bundles of diversity and equality management (DEM) practices influence racial diversity in the managerial ranks. By considering the conceptualization of DEM practices and the moderating role of firm size, our study disentangles subtle nuances in the DEM practices–racial diversity in managerial ranks relationship. Based on a sample of 137 Fortune 1,000 firms over a two‐year period, our results suggest that minority opportunity‐based DEM practices and manager accountability DEM practices positively relate to racial diversity in managerial ranks, and these relationships are stronger in smaller companies than large ones. Theoretical and practical implications for a strategic perspective on future diversity management research are elaborated.     

Economic Outlook 1990–1994: The London Business School with Gower Publishing: Forecast Release: THE 1991-92 WAGE ROUND

The current wage round begins under circumstances markedly different from the previous one. A year ago the Department of Employment measure of the underlying growth in average earnings was, at 10 per cent, higher than at any period since the 1979-80 pay explosion. Following the invasion of Kuwait there were considerable dangers that cost pressures would initiate a wage-price spiral. In the event the hike in oil prices had only a small and temporary effect on headline inflation rates, which was more than offset by deflationary pressures resulting from the worse-than-expected economic downturn. In addition, UK entry to the ERM in October meant a major shift in the conduct of economic policy. The need to maintain the pound at its high central parity introduced extra discipline into pay-bargaining by ruling out the accommodation of uncompetitive wage rises through depreciation.