List of issues

Contents of issue 10/2009

Wojciech Potocki - Factors Shaping Crude Oil Prices in Theory and Practice, abstract, article

Adam Koronowski - Monetary Policy and Financial Crises, abstract, article

Wioletta Nawrot - Minsky’s Theory of Financial Crises and Its Impact on Contemporary Economics, abstract, article

Janusz Kaliński - The Centrally Planned Economy and Global Business Cycles, abstract, article

Barbara Roszkowska-Mądra - The Concepts of Agricultural and Rural Development in the European Union, abstract, article

Magdalena Raftowicz-Filipkiewicz - National Brands and Their Impact on the Competitiveness of Economies, abstract, article


The Diagnosis Related Group System: An Efficient Management Tool in the Health Sector - Ewelina Rabiej

Book Review: Adam Noga, Teorie przedsiębiorstw (Enterprise Theory), Polskie Wydawnictwo Ekonomiczne, Warsaw 2009, 359 pp. - reviewed by Jacek Brdulak

Wojciech Potocki - Factors Shaping Crude Oil Prices in Theory and Practice

The article examines the influence of various factors on the price of crude oil according to two approaches: American economist Harold Hotelling’s rule of nonrenewable resources and a theory known as the short-term equilibrium approach.
Empirical studies show that the Hotelling rule does not hold true in practice, Potocki says, because it is based on unstable assumptions. These include changing extraction costs and variable interest rates, in addition to factors such as market failure and strategic interactions.
The short-term equilibrium model describes a crude oil pricing mechanism that is determined by a combination of economic, political and psychological factors among which the equilibrium of crude oil inventories plays a key role.
The author is critical of the widespread use of a static resource/production ratio and argues that researchers should think over the consequences of misinterpreting this ratio and the implications of overestimating crude oil resources.

Keywords: crude oil prices, Hotelling rule, nonrenewable resources, extraction costs, interest rate, short-term equilibrium model, resource/production ratio
Article: PDF

Adam Koronowski - Monetary Policy and Financial Crises

The paper discusses the role of monetary policy in preventing financial crises and offsetting their implications. The paper provides a critical evaluation of views on the relationship between monetary policy and financial crises. The author looks at this issue in the context of practical experiences, especially those coming from the U.S. market, where the analyzed ties seem to be the most prominent. The author concludes that a monetary policy exclusively focused on the prices of goods and services and oriented toward keeping inflation in check in the short term, may create an environment conducive to the outbreak of a financial crisis. The probability of such a situation is especially high if the financial market is heavily liberalized and poorly supervised, Koronowski says. However, the main conclusion is that a financial crisis may be prompted by an excessive, prolonged increase in the liquidity of the banking sector after a decline in financial stability or as a result of failed central bank attempts to stimulate credit expansion and economic growth. Yet another conclusion is that monetary policy must be stable not only in terms of inflation, but also in terms of the price of money, Koronowski says. This is indispensable for a healthy financial sector and robust economic growth, the author adds.

Keywords: monetary policy, financial crisis, inflation, financial stability
Article: PDF

Wioletta Nawrot - Minsky’s Theory of Financial Crises and Its Impact on Contemporary Economics

The fall of the U.S. investment bank Lehman Brothers—one of the world’s largest financial institutions—in mid-September last year rocked the foundations of the global financial system and triggered what turned out to be the worst financial crisis since the Great Depression of the 1930s. Amid the global turmoil, international economists and financiers dusted off a 1980s book by American economist Hyman P. Minsky entitled Stabilizing an Unstable Economy. The book sheds new light on the ongoing financial crisis. One of the many strengths of this book is that it offers a consistent definition of a financial crisis in the modern economy.
Nawrot’s article analyzes the latest financial turbulence in the world. The analysis makes use of methods based on a theoretical model developed by Minsky, which, for the needs of the article, was expanded to address the situation at the start of the 21st century. The author uses this comprehensive financial model to probe the essence of the ongoing crisis and identify its causes, course and possible implications.
The analysis shows that the world’s financial markets are undergoing dynamic changes and that many financial market players are in debt. This, along with a changing breakdown of this debt, poses a serious threat for the future, Nawrot says.

Keywords: global financial crisis, Great Depression, Hyman P. Minsky
Article: PDF

Janusz Kaliński - The Centrally Planned Economy and Global Business Cycles

The demise of central planning in the former East bloc is a frequent topic of economic and political analyses. Kaliński’s article describes changes in the centrally planned economies of former Soviet satellite states in the context of market trends in capitalist economies. The analysis covers a period from the emergence of the Soviet Union until its breakup. The statistical analysis is accompanied by a discussion of the political and social environment of the time. The author notes that, in the initial period, there was no link between global business cycles and economic growth in the Soviet Union and other Soviet bloc countries. This was due to major political and economic differences and the far-reaching isolation of the region’s centrally planned economies, especially during the Cold War period. The partial opening of Central and Eastern Europe to commercial and financial cooperation with the West in the 1970s led a convergence between the capitalist and centrally planned systems. Negative trends in the global economy, including energy crises and growing indebtedness, had a strong impact on what happened in the Soviet bloc. This situation, coupled with the inefficiency and poor competitiveness of the centrally planned economy and its inability to meet consumer demand, became a significant factor behind the collapse of the system across Central and Eastern Europe, the author concludes.

Keywords: global economy, business cycles, central planning, Central and Eastern Europe, East-West relations, convergence
Article: PDF

Barbara Roszkowska-Mądra - The Concepts of Agricultural and Rural Development in the European Union

The paper looks at the prevalent approach to agricultural and rural development in the European Union, describing its origin, essence and the rationale behind it. The analysis makes use of descriptive and comparative methods. The author notes that the policy of sustainable development is currently the common approach to development processes in agriculture and rural areas in both the European Union and elsewhere. This approach is a response to some negative trends provoked by previous policies,Roszkowska-Mądra says. As the EU’s Common Agricultural Policy (CAP) changes, it is becoming increasingly oriented toward sustainable development. According to Roszkowska-Mądra, an optimal approach to the development of Poland’s rural areas, under the current socioeconomic and environmental conditions, is proposed by a French model calling for the development of what is known as multifunctional agriculture. The model involves a combination of exogenous and endogenous factors adapted to the type of farming system.

Keywords: sustainable development, rural areas, Common Agricultural Policy (CAP), multifunctional agriculture
Article: PDF

Magdalena Raftowicz-Filipkiewicz - National Brands and Their Impact on the Competitiveness of Economies

The paper is concerned with national brands as an example of soft economic factors influencing the international competitiveness of economies. National brands play an important role among these factors, the author says. Strong national brands help raise the country’s profile internationally and help attract foreign direct investment, stimulate tourism and increase exports. The article attempts to show that national brands positively impact international competitiveness. To this end, a descriptive model is used as a tool for examining the essence and nature of this relationship. The analyzed relationship was quantified with the use of Spearman’s rank correlation test using league tables of competitiveness and national brands as empirical material. The research shows that there is a statistical correlation between the level of macro-competitiveness and the strength of national brands, which the author says should encourage governments to invest in national brands as an indirect method of increasing the international competitiveness of their countries.

Keywords: national brands, international economic competitiveness, Spearman’s rank correlation test
Article: PDF

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