Speculative attack against the Hungarian forint

In mid-January 2003 a severe speculative attack was launched against the exchange rate of the Hungarian forint. The attack was very unusual in the history of foreign exchange speculations, since it was aimed at enforcing the appreciation — and not the depreciation — of the currency targeted. The specific nature of this kind of speculation is closely related to Hungary’s accession to the European Union in general and to EMU in particular. Since the other Central and Eastern European acceding countries face similar problems and challenges, the Hungarian experience may involve some instructive lessons on monetary and economic policy for them too.     

Costs and benefits of EU enlargement

While the political benefits of the coming EU enlargement are relatively easy to identify, its economic and financial consequences are less unequivocal. The following article examines the likely costs and benefits of enlargement to both existing and future Members, and in particular how it will affect Germany, one of the few present EU Member States which has direct borders with acceding states. The article expresses the personal opinions of the author.     

The New Economy is dead,long live the information economy

The arrival of the 2001–2003 recession caused many to suppose that the so-called “New Economy” was now defunct. This article addresses a number of related issues, including the question of the durability and viability of business cycles in the face of the technological developments of the information age. It asks what went wrong with the New Economy and examines its characteristics as well as its remaining possibilities and prospects for the future. Finally, it considers the spread of the Information Economy to Europe, especially to Germany, the country that one might expect to be the leading European player, but which is not at present actually a strong competitor for that role.     

Possibilities and problems with the use of models as a communication tool in water resource management

Politicians and policy-makers, as well as modellers, often nurses an expectation that model derived results is an objective source of information that can be used to support decisions. However, several prerequisites have to be dealt with in order to ensure that models can be used as legitimate and efficient tools in water resource management. Based on empirical material from recent studies on the use of models in stakeholder dialogues, mainly focusing on catchment nutrient transport, two central problems are identified: (a) Models are laden with choices and thus depend on assumptions and priorities of modellers. (b) There are several factors that influence ability and willingness of stakeholders (as information recovers) to criticize or accept results of the modelling exercise. Recognized factors likely to influence stakeholders' acceptance of model derived results include issues at stake, stakeholders' ability to criticize model derived information, and their trust in the institutions that have developed or applied the used models. Identified prerequisites for successful use of models in integrated water resource management include: consideration of user relevance, awareness of and preparedness to handle constraints linked to communication of model-based results, transparency of used models and data and of involved uncertainties, mutual respect between experts and stakeholders and between involved stakeholder groups, a robust institutional network, and sufficient time for dialogues. Development and use of strategies for participatory modelling, based on a continuous dialogue between experts and stakeholders is recommended as a way to facilitate that the prerequisites for a successful use of models in water resource management are fulfilled.