Finance, Misc

This very short paper highlights some of my recent and forthcoming work on “good epistemic practices” in the financial services industry. It identifies some epistemic dimensions of risk management in banking and illustrates how managing for good epistemic practices might be helpful.

Alternative currencies are means of payment that circulate alongside—as an alternative or complement to—official currencies. While these currencies have existed for a long time, both society and academia have shown a renewed interest in their potential to decentralize the governance of monetary affairs and to bring people and organizations together in more ethical or sustainable ways. This article is a review of the ethical and philosophical implications of these alternative monetary projects. We first discuss various classifications of these currencies before (...) analyzing the ethical challenges linked to the way they tackle social and environmental issues. We also examine the incentive-based and coercive mechanisms used by these currencies from an ethical perspective and debate the promises and perils of monetary decentralization and democracy. We conclude by identifying an agenda for future research. (shrink)

Abstract: We face objections against punishing financial firms and managers for producing risks for the financial system – that it’s either paternalistic or inefficient. Against the first: financial crises are so damaging that governments and deposit insurance funds have to intervene – an implicit guarantee to creditors. This is controversial from the perspective of political morality: it implies using resources from the public for the benefit of better-off people who willingly incur risks. So, we begin by studying a possible justification (...) for this arrangement from the ‘incentives argument’ derived from the Rawls difference principle, in the light of G. Cohen’s criticisms. Against the second: we cannot completely dispense with coercive instruments - mainly for the moral hazard entailed by the implicit guarantee. Therefore, we conclude the threat of liability must have a punitive and a preventive character, extending to non-compliance with norms on risk even before generating major economic effects. Keywords: Incentives, Responsibility, Moral Hazard, Justice, Finances JEL Classification: D63, G28, K42 -/- Resumo: Enfrentamos duas objeções à punição de instituições financeiras e gestores pela produção de riscos ao sistema financeiro – que seria paternalista e ineficiente. Contra a primeira: crises financeiras prejudicam tanto a economia que governos e fundos garantidores são obrigados a intervir – uma garantia implícita aos credores. Isso é polêmico da perspectiva da moralidade política: implica utilizar recursos do público em benefício de pessoas em melhor situação que voluntariamente incorrem em riscos. Na primeira seção, estudamos justificar esse arranjo a partir do “argumento do incentivo”, decorrente do princípio da diferença de Rawls, à luz das críticas de G. Cohen. Contra (b), arguimos que não podemos prescindir completamente de instrumentos coercitivos – mormente pelo risco moral decorrente da garantia implícita. Logo, é preciso que a ameaça de responsabilização tenha um caráter punitivo e preventivo, se estendendo ao descumprimento de normas sobre risco mesmo sem gerar efeitos econômicos maiores. Palavras-chave: Incentivos, Responsabilidade, Risco Moral, Justiça, Finanças JEL Classification: D63, G28, K42 -/- (This is a translation of the working paper "Equality and Responsibility"). (shrink)

The article provides a critical assessment of The Central Bank of the Russian Federation policy in response to the sanctions of the US, the EU, the UK, Switzerland, Japan, South Korea and a number of other countries. The effect of sanctions on the Russian economy and its financial market is viewed through the prism of credit, interest rate, and currency risk, and the risk of a decline in business activity. Special attention is paid to the inflationary component and inflationary expectations (...) of the Russian Federation, as well as to the forecasts for a decline in business activity in Russia. A critical assessment is given to the actions of the Central Bank of the Russian Federation and the economic bloc of the government of the Russian Federation as a whole in response to the sanctions of the civilized world, which disable the normal existence of the economy and the main purpose of which is not to destroy the economy of the Russian Federation but to ensure the end of hostilities on the European continent. The results of our study will be useful to everyone who studies the problems of the effect of economic sanctions on the resource-based economy and the processes of stimulating political decisions by economic methods. (shrink)

Purpose: To develop proposals on the directions of institutional support for the processes of creativity of the Ukrainian economy. Design/methodology/approach: The analysis of trends in the creativity of the Ukrainian economy is carried out and proposals are developed for conceptualizing institutional support for these processes. The authors set out to develop proposals for institutional support for creativity processes and offer recommendations for systematic updating of Ukrainian legislation in the areas of state regulation of high-tech business. The information base was the (...) information materials of the State Statistics Service of Ukraine, Ministry of Economic Development and Trade of Ukraine, the statistical databases of the European Commission, OECD and World Bank for the period 2014–2020. The research methodology is based on scientific tools that include comparative analysis and economic and mathematical modeling. Findings: Building a national program of public investment in creative development will allow us to systematically approach the issue of institutional support for technological breakthroughs. Research limitations/implications: Recommendations on the development and improvement of legislative instruments of deregulatory policy, harmonization with European standards are substantiated. Directions of systematic updating of legislation on guaranteeing foreign investment of creative projects and targeted investment of joint research projects of academic science and creative organizations are proposed. The implementation will allow a systematic approach to the issue of institutional support for the technological breakthrough of Ukraine. Originality/value: There is a need to step up institutional activities in the field of organizing research centers, introduce targeted investment in the academic science and research activity of creative organizations. (shrink)

In accordance with Order No. 548 of the Ministry of Infrastructure dated December 21, 2015 “On measures for the development of road transport and the road economy for the period until 2020”, strategic directions and strategic development goals were developed. This is necessary to ensure the implementation of plans and the implementation of EU legislation in accordance with the Association Agreement. In accordance with the Order, the priorities were to reform the road sector and to ensure the development and maintenance (...) of the road network in good condition. It was also proposed to modify the existing road financing system. (shrink)

After the 2008 crisis, there were several debates on the bail-out and the lack of accountability of financial institutions; this supposedly affects politica l values such as equality and responsibility: it implies transferring resources from the public (for instance, poor people) to specific economic agents who have chosen to incur certain risks. On the other hand, it is arguable that it would not be up to the regulators to protect investors’ interests, and that there would be more efficient and less (...) burdensome instruments associated with prudential regulation. Our goal is to provide a justification for the bail-out and for holding bankers accountable. In section 2, we present a brief description of the problem in the context of the crisis, followed by a justification for the bail-out through the incentives argument, based on Rawls’s difference principle. In section 3, we provide an ethical discussion over the corresponding moral hazards, and investigate how to mitigate it through coercive measures. (shrink)

O escritor A. J. Jacobs (2018) decidiu agradecer todas os envolvidas na preparação de seu cafezinho diário; isso o levou a uma jornada épica para contatar milhares de pessoas, desde a barista que lhe vendia o expresso matinal, passando por designers e inventores, até os agricultores que plantaram e colheram o grão em outro continente. Não existe um único indivíduo ou grupo responsável pelo seu café: é preciso um mundo para produzi-lo; é resultado de uma cadeia produtiva, uma rede decentralizada (...) que envolve diversos serviços espalhados internacionalmente – e todas essas pessoas, por sua vez, consomem outros produtos, com outras cadeias. Como este livro. Contraste esse exemplo com a anedota do diplomata soviético que, visitando Londres, fica maravilhado com as padarias – e então pergunta pelo encarregado da distribuição de pães na cidade (Harari, 2016, p. 372). Para seu espanto, os economistas ingleses respondem que ninguém tem esse cargo: o fornecimento de pães é resultado de um agregado de decisões individuais, em que cada fornecedor de matéria-prima (como farinha, sal, fermento) e serviços (transporte, padaria, limpeza) regula sua oferta a partir do que espera que os consumidores querem consumir – e o quanto estes estão dispostos a pagar. É o caso clássico do funcionamento de uma economia de mercado – em contraste com uma economia de comando, onde um grupo de pessoas, conscientemente, toma decisões sobre produção e distribuição. Esses exemplos ressaltam as “vantagens” dos mercados; pode ser tentador pensar, a partir deles, que todos os bens e serviços deveriam ser fornecidos dessa forma, porque isso maximiza a liberdade individual ou tende a 553 levar ao bem-estar coletivo, e que o melhor a fazer é evitar interferências nesse sistema – ideias associadas ao liberalismo econômico, uma teoria política e econômica que tem por patrono Adam Smith (o primeiro economista clássico). No entanto, mesmo economistas liberais reconhecem que há falhas de mercado (como bens públicos e monopólios129). Voltemos a A. J. Jacobs, o qual frisa seu agradecimento ao serviço de fornecimento de água, um “milagre moderno”: ao longo da história, a imensa maioria das pessoas não teve acesso a água encanada – mesmo hoje, 2 bilhões de pessoas ainda carecem de condições sanitárias adequadas (água e esgoto), o que causa doenças que matam 829 mil por ano (WHO, 2015). É um problema que não pode ser resolvido só por mercados, nem por associações filantrópicas; na maior parte do mundo, é um serviço público, geralmente fornecido ou regulado por estados – e sua ausência decorre de falhas de governo. (shrink)

В публикации рассматриваются особенности функционирования банков развития. Проанализированы мнения ученых по поводу деятельности банков развития и их влияния на экономическое развитие страны. Определены основные цели банков развития. Обоснованы отличия между банками развития и коммерческими банками. Рассмотрены особенности деятельности Банка развития Республики Беларусь. Исследованы мнения отечественных ученых по поводу необходимости создания банка развития в Украине. Проанализированы проблемы функционирования Украинского банка реконструкции и развития, а также Всеукраинского банка развития. Предложены основные направления создания государственного банка развития в Украине.