Monetary Research Center

Economic history & History of Economic Thought

WP 23/2021 Balkan Monetary Dependence during the XIX and XX centuries
In this article, we look at the main stages of the monetary systems on the Balkans, representing a cyclical alternation of dependent models, each of them effectively serving the relationship of the Balkan peripheral economies with their dominant military, geopolitical and economic centre. This centre of attraction is the anchor against which the monetary regime of the periphery is adjusted. We consider four periods: (i) the building of a national monetary system after long years of Ottoman domination, and especially the accession to the Latin Monetary Union, (ii) the adoption of the rules of the League of Nations and monetary stabilizations based on the gold exchange standard, (iii) the inclusion in the German Lebensraum and the system of currency control and clearings, and finally (iv) the Soviet zone and the COMECON, the mechanism of passive money and the transferable ruble. In the last period we present the Yugoslav monetary regime, which was attached to the West.
WP 22/2021 Soft Monetary Constraint and Shortage in the European Sovereign Debt Economy. Insights from J. Kornai’s theory.
From the fourth quarter of 2007 to the second quarter of 2020, the monetary base in the euro area grew by 330%, the money supply by 61% and inflation measured by the consumer price index - only 17%. Interest rates are around zero and negative, inflation is low, and we often register deflation. This discrepancy between the growth of money and prices has not only practical dimensions for the ECB and FED monetary policy, but also a theoretical significance. In this contribution, we propose an interpretation of these trends on the basis of concepts developed by J. Kornai in his economics of shortage analysis, which we apply to the sovereign debt market of European countries. The point here is not to transpose Kornai's shortage economy analysis to European capitalist economies, but to show that similar phenomena are appearing today in a different institutional context. 

The fifth annual scientific conference of the Monetary and Economic Research Center (MRC) was held from 17th to 18th of October 2019 at the University of National and World Economy (UNWE) in Sofia, Bulgaria.

The main accent on the 5th Annual Conference was the future of Europe's monetary and economic development after the EU elections. Researchers and professionals from more than 7 countries took part.

           ISBN: 978-619-90797-6-8 
Evaluation of members’ satisfaction in modern Bulgarian agricultural cooperatives
by KOSTENAROV Krasimir and SAROV Angel and BOEVSKY Ivan | Wednesday, May 27, 2020
Decades after the establishment of the first modern agricultural cooperative in Bulgaria, we observe a continuous increase in its number, then we see a decline until nowadays. We have identified three historical periods for this development: pre- socialism, socialism and post-socialism. In periods, when the members’ satisfaction is higher, we notice an increase of the cooperatives’ number and vice versa. In each period the relation between members’ satisfaction, cooperative values and principles, on the one hand, and existing and operating governance structures, on the other hand, differs seriously. This paper is concentrated on reasons for this development and tries to evaluate the influence and application of the governance structure and cooperative values and principles on members’ satisfaction. In our research we argue that the members’ satisfaction is higher when the governance structure of the cooperative fits with the cooperative values and principles.
Empirical analysis of the relationship between the exchange rate and the inflation rate with the VAR model case of Vietnam (1995-2016)
by NGUYEN Duy Quang | Wednesday, May 27, 2020
The analyses in Chapter 2 lead us to a question on the relationship between foreign exchange reserves and the monetary base. Changes in the foreign exchange reserve will affect changes in exchange rates. We can use the foreign exchange reserve as a tool to modify and anticipate the exchange rate in the economy. Moreover, inflation has a strict relationship with the quantity of currency and Vietnam's monetary source depends in particular on changes in external assets. In the case of Vietnam, after the periods of hyperinflation (1954-1975; 1973-1975; 1985-1989) , the value of the Vietnamese currency was significantly devalued. In this case, based on the analyses of post-Keynesian authors, we can see that the reason for the substitution of the national currency for the foreign currency in this context can be explained by the preference for liquidity, which is a preference for holding highly liquid assets with stable values (Charles and Marie, 2016). If the value of the domestic currency is not stable due to high inflation or depreciation, foreign currencies can better satisfy the liquidity preference. Subsequently, the use of the dollar (or another foreign currency) as a unit of account is observed, followed by an increased tendency to make payments in foreign currency. In addition, the volatility of the inflation rate and the exchange rate has strongly influenced the objectives of balance of payments stabilization and economic growth .

The fourth annual scientific conference of the Monetary and Economic Research Center (MRC) was held from 11th to 12th of October 2018 at the University of National and World Economy (UNWE) in Sofia, Bulgaria.

Main accent on the 4th Annual Conference was the place and importance of the Balkan countries in the European Union. Researchers and professionals from more than 7 countries took part.

The present book consists papers in English and Bulgarian languages.

           ISBN 978-619-90797-5-1                    

Ownership as an economic category in the research of Karl Marx and their importance in the history of economic thought
by MUSIAL Grazyna and MUSIAL Grazyna | Friday, March 29, 2019
The article deals with the problem of ownership as a scientific category. An analysis of Karl Marx's output is made to explain the place of this economic category in the category of dialectic. The subject of the study is "Capital" (three volumes) and other studies by Marx, mainly "Grundrisse der Kritik der politischen Oekonomie" (1857). The article emphasizes the semantic differences of such concepts as: ownership, possession, disposal and derivatives.
The clash between titans - behavioral portfolio theory versus Markowitz’s modern portfolio theory
by KARAMILEVA Nikoleta and KARAMILEVA Nikoleta | Friday, March 29, 2019
Markowitz's Mean Variance Theory (MVT) from 1952, Nobel Prize awarded, is considered as one of the fundamental in finance and specifically in portfolio management. It sets the relation in which the expected return is maximized for a given level of risk. This is a framework where the investor aims to minimize the variance of his portfolio. On the other hand, the Behavior portfolio theory (BPT) works with the assumption that investors seek to secure a minimal final return and they are not rational but driven by different types of emotions within taking their final decisions. The aim of the current article is to examine the different perspectives of both theories, the clash between expectations, beliefs, rationality and asymmetric information that are to be the main variables in terms of non-material changes that may occur when investor takes his decision how to structure his portfolio environment. Except for defining the differences between the two theories, the article will try to define any empirical evidences to justify the answer of the question: is our standard perception of diversification obsolete and are the decision makers really rational within trying to be on the efficient markets frontier?
Firm versus market in Ronald Coase’s concept
by TCHIPEV Plamen | Friday, March 29, 2019
In November 1937 Ronald Harris Coase published his fundamental article "The Nature of the Firm", throwing the gauntlet to neoclassical economics, which could not be responded properly already 80 years. The task presented by Coase to the economic community is simple to failure. Reminding us, that in the economic system, led by the free price movements in which all resources are allocated by the price mechanism, we find, in the words of a contemporary economist, "islands of conscious power in this ocean of unconscious co-operation like lumps of butter, which coagulating in a pale of butter", the great scholar asked: why do we need that at all? Why, in the coordinating role of the market does appear the inevitable figure of entrepreneur-coordinator, who leads the production? Indicating that the company and the market are alternative ways of organizing, Coase released genie out of the bottle, because the answer he provided, actually launched an endless string of deba¬tes, hypotheses, competing explanations - what exactly is the nature of the compa¬ny. This paper aims to provide a more detailed look at the essence of the dilem¬ma posed by R. Coase, paying tribute to the anniversary of the issue of his genius work.

The third annual scientific conference of the MRC was held from 12th to 13th of October 2017 at the University of National and World Economy (UNWE) in Sofia, Bulgaria.

Main accent on the 3rd Annual Conference conference was the monetary regimes with special focus on 20 years of currency board in Bulgaria. Researchers and professionals from more than 9 countries took part.

   The present book consists papers in English and Bulgarian languages 

ISBN 978-619-90797-3-7

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