Romanian Capitalist Economic Thought (I)

Romanian Capitalist Economic Thought (I) Brief notes on pre-1989 diasporic and post-1989 domestic debates

No. 9, Jan.-Feb. 2018

The process of institutional transformation from the socialist, command economy to the capitalist, market economy can be understood theoretically and historically, as a priority, like a process of intellectual transformation. Romania in the 1990s, perhaps to a greater extent than any other country in the ex-communist bloc, was the theatre of a transition at the level of politico-economic institutions which was little-announced and stated by a convergent, consensual idealistic transition.  More

Romanian Capitalist Economic Thought (II)

Romanian Capitalist Economic Thought (II) Brief notes on pre-1989 diasporic and post-1989 domestic debates

No. 9, Jan.-Feb. 2018

“The disappearance of Communism in Eastern Europe in 1989 reflected the collapse of the existing belief system and accordingly the weakening of its support organizations” (North 1997, 18). Such a verdict catches the image of a bivalent process of deconstruction and institutional reconstruction: from former imposition of material and moral servitudes to economic and political liberalization. But that new order – of the market and of the multiparty system – could have been accomplished, ultimately and inevitably, with the same people who inhabited the old institutional and organizational architectures, both at the top and at the base of society. The intellectual scaffolding of transformation became a critical resource, and its training and performance were, among others, functions of epistemic tradition and transfer. More

Rebuilding Economics

Rebuilding Economics Series of articles excerpted from the printed edition [#1]

No. 9, Jan.-Feb. 2018

In the last decades, the economic discipline in its hypostasis of Economics (i.e. positive economic theory) was, and also currently is, subject to radical and massive criticism not only from the non-economists (including physicists!), but also from notorious economists, including Nobel Prize winners.The perspectives of such criticisms are very different, starting from the conceptual bases, focusing on the methodological framework, and ending with the predictive potential. Of course, although the initial criticisms were focused on the mechanical ways of economic thinking (by taking over the Newtonian paradigm in physics), other points came to the forefront in recent years: the required interdisciplinary character of Economics, the issue of truth in the economic field (in a wider sense: in the social field), the required evolutionary nature of Economics, because of the evolutionary nature of the society, and even the requirement of a new formalism in Economics based on something other than differential equations (which do not indicate the dynamics – i.e., the causality – in the economic process) and so on. More

The One-Size-Fits-All of the World Bank’s “Ease of Doing Business” Reports

The One-Size-Fits-All of the World Bank’s “Ease of Doing Business” Reports

No. 9, Jan.-Feb. 2018

The recently released World Bank “Ease of doing business 2018” report put Nigeria at 145 out of 190 countries surveyed, just behind Niger. This ranking represents a significant improvement over that of last year, when the country was ranked 169th. Therefore, there are several questions that need to be asked: Are these statistics enough? Is Nigeria’s business environment now friendly with entrepreneurs and investors? What do these figures mean to the ordinary Nigerian? More

“Are Central Banks Literally Independent?”

“Are Central Banks Literally Independent?” Two sides of one highly sensitive debate. And two Romanian economists taking sides

No. 9, Jan.-Feb. 2018

The independence of the central banks – mysterious or miraculous entities in the eyes of masses – is practically an inexhaustible topic for scholars-economists and political scientists, as well as for business-persons and policy-makers. Still, the ultimate bill-payer of all institutional settings and governance organizations is the consumer-citizen. For this character this bell (of the debate) tolls. More

Some Thoughts on the “Global Competitiveness”

Some Thoughts on the “Global Competitiveness” Beyond the glamour of Davos

No. 9, Jan.-Feb. 2018

Despite the argument by Krugman that “economists, in general, do not use the word competitiveness”, a cursory survey of the literature reveals a wide range of definitions of competitiveness and frequent usage of the concept. Moreover, although research on competitiveness has been popular for forty years, in recent time it appears to be flourishing as many economic phenomena are assessed according to whether they are competitive or non-competitive. This probably explains why the last several years have witnessed a growing academic and political debate over better ways to conceptualize and measure competitiveness. More

The World of Romania

The World of Romania Works that made this planet a better place – Part I –

No. 9, Jan.-Feb. 2018

The Market for Ideas and the students from the class of 2018 of the “International Economic Diplomacy” Master’s Program, from the Faculty of International Business and Economics, of the Bucharest University of Economic Studies, Romania, prepared, in a special dossier, an anthology of what may be noted as cultural-diplomatic, civilization-contextualized answers to a question: “How did Romanian critical thinkers and gifted creators contribute to the thrive of humankind?”  More

Ruling over Central Banking…doms

Ruling over Central Banking…doms The (mir)age of independence

No. 9, Jan.-Feb. 2018

The independence of the central banks – mysterious or miraculous entities in the eyes of masses – is practically an inexhaustible topic for scholars-economists and political scientists, as well as for business-persons and policy-makers.Still, the ultimate bill-payer of all institutional settings and governance organizations is the consumer-citizen.For this character this bell (of the debate) tolls.  More

Plus ça change, plus c'est la même chose

Plus ça change, plus c'est la même chose

No. 9, Jan.-Feb. 2018

In his article “Opioids and Paternalism”, Dr. David Brown described the new face of American drug addiction, “the new underclass is stymied by economic obsolescence, a sense of victimhood, and an exaggerated view of its own physical damage”. One of my former professors used to say, “don’t re-invent the wheel unnecessarily” to convey the idea that one does not need to create new analyses and methodologies for every problem. In addition to Dr. Brown’s sound scientific and psychological observations, I believe that we may also look to history for enlightenment regarding the current malaise. More

The Matter of Persia: Discerning Meaning from Strife and Unrest

The Matter of Persia: Discerning Meaning from Strife and Unrest

No. 9, Jan.-Feb. 2018

The year 2018 began with a renewal of some of last year’s main geopolitical clashes, the most prominent being the nuclear threats exchanged between North Korea’s Kim Jong-Un and Donald Trump, China’s President Xi Jinping delivering grim speeches to his army, urging troops to be ready for war, and analysts offering generally gloomy forecasts for this year. One other significant event that has erupted near the end of 2017 were the unexpected and violent protests in Iran that have continued up to at least the first week of 2018, with mass demonstrations held both for and against the country’s current government and an uncompromising crackdown by Iranian police. More

Invitation to the European Resource Bank Meeting

Invitation to the European Resource Bank Meeting Gathering of libertarian, conservative, and liberal entrepreneurs and thinkers

No. 9, Jan.-Feb. 2018

Economic think tanks, entrepreneurs, institutes, and intellectuals assemble annually at the European Resource Bank meeting to discuss the challenges to the free market, individual liberty, and free enterprise facing Europe and the world. This year the event is in Prague, Czech Republic, and will be an exciting three day conference from 13 April through 15 April, 2018. It will be hosted in cooperation with the CERGE-EI Foundation and will take place at the Center for Economic Research and Graduate Education – Economics Institute. More

Rebuilding Economics: Propaedeutic Assertions

Rebuilding Economics: Propaedeutic Assertions

No. 9, Jan.-Feb. 2018

In the last decades, the economic discipline in its hypostasis of Economics (i.e. positive economic theory) was, and also currently is, subject to radical and massive criticism not only from the non-economists (including physicists!), but also from notorious economists, including Nobel Prize winners. The perspectives of such criticisms are very different, starting from the conceptual bases, focusing on the methodological framework, and ending with the predictive potential. Of course, although the initial criticisms were focused on the mechanical ways of economic thinking (by taking over the Newtonian paradigm in physics), other points came to the forefront in recent years: the required interdisciplinary character of Economics, the issue of truth in the economic field (in a wider sense: in the social field), the required evolutionary nature of Economics, because of the evolutionary nature of the society, and even the requirement of a new formalism in Economics based on something other than differential equations (which do not indicate the dynamics – i.e., the causality – in the economic process) and so on.  More

The Structural Incompleteness of Economics

The Structural Incompleteness of Economics Rebuilding Economics

No. 9, Jan.-Feb. 2018

As I understand it, in the economic discipline there are two major paradigms in the sense that Thomas Kuhn employed the word, to mean modes of thought:a) the neoclassical paradigm (the still current mainstream);
b) the behavioural paradigm (the dissident current).
Keynesianism and its avatars (new and post-Keynesianism) could be considered as properly fitting with the neoclassical model although, as it is well-known, Keynes anticipated the so-called behavioural economics (see, for example, the concept of “animal spirits”, also approached by Akerlof and Schiller). In my opinion, both paradigms are incomplete regarding some crucial, structural issues. The examination of this heretical assertion is the goal of this article. More

Will We Face an Economic Uncertainty from the Current Political Instability?

Will We Face an Economic Uncertainty from the Current Political Instability? Economy Near Us (I)

No. 9, Jan.-Feb. 2018

By a system instability we must not understand a general fluctuations or oscillations of the system in its entirety. The instability of a system is done by only a few number of its components, but they must be crucial for the system identity/personality (the so called hub components). More, not any fluctuations or oscillations should be qualified as being instability, but only these fluctuations or oscillations which either are unpredictable (in their entirety or partially), or pass beyond a threshold usually accepted. This threshold could be viewed either as size, or as duration. So, the instability is, in fact, much lesser than it is usually considered. More

On the Law Enactment Trap

On the Law Enactment Trap Economy Near Us (II)

No. 9, Jan.-Feb. 2018

A free society is that society in which the general law governs, that is, the law which concerns all the members of society in relation to the norm which that general law establishes. And, on the contrary, society is not free when the private law governs, that is, the law that concerns only a very small number, a minority or, to the limit, an individual or a few individuals. Such a law is also referred to as a privilege (private law). The current effervescence in Romania on amending the laws of justice is an example within reach for philosophers of law, but also for social philosophers or moral philosophers, to reflect on this fundamental aspect of freedom (I refer here to the concept of individual freedom, which is the source of all punctual liberties, which must under no circumstances be confused) in the Romanian society. More

Inflation Surpassing Populism

Inflation Surpassing Populism

No. 9, Jan.-Feb. 2018

In a Europe locked-in below-target inflation, for the most part, one country basically surpasses all others. Romania managed to almost triple its inflation rate one month into the New Year, after a brief – and unique period in the last quarter century or so – when the headline figure was actually negative. What’s behind this astonishing success, or not such a success after all? More

The Psychological Watchdog of Footballers

The Psychological Watchdog of Footballers

No. 9, Jan.-Feb. 2018

Where is Romanian football heading towards? Well, for a beginning, literally speaking, it might head towards the back of the net, which would be wonderful piece of news for the goal scoring team. The not so bright answer would come if the question was considered as a metaphor, not as a real ball-playing skill of any given footballer. Irrespective of where a ball is really heading – in or outside the goal, in the stands, outside the stadium even, as witnessed in many small, murky stadiums of lower league competitions – one thing is certain: Romanian football fans don’t really seem to be heading towards there where one would expect them to see: to the stadiums. More

The Keys to the American Economy Are Changing Hands

The Keys to the American Economy Are Changing Hands

No. 9, Jan.-Feb. 2018

A change in leadership is imminent for one of the most important institutions for the American economy. Janet Yellen, the first woman to chair the Federal Reserve, will step down at the end of her four-year tenure at the helm of the establishment, after becoming the first chair in recent years not to be nominated for a second term. More

Smaranda Brăescu: The Girl with Her Head in the Clouds

Smaranda Brăescu: The Girl with Her Head in the Clouds

No. 9, Jan.-Feb. 2018

In the early 1900s, modern aviation was still in its infancy. It was an era when iconic inventions and discoveries in terms of flying machines were only starting to see the light of day. The first pilot licence obtained in Romania was issued in 1911, after the first Romanian aviation school was opened in the spring of the same year. Against this backdrop, a career in aviation was, in the 1900s, an uncharted road, especially in the case of women, for whom, at that time, it was globally uncommon to vote or to have a job… any type of job. Just to remind you that the first European country to introduce women’s suffrage has done so in 1907, while Romania gave women the right to vote only in 1938. Also in Romania, married women were allowed to manage their own income only starting 1926. More

Photon(e)s 1.0

Photon(e)s 1.0 Hellenic, Hellios

No. 9, Jan.-Feb. 2018

A portrait of Romina, done in a much too warm day, somewhere in Athens, along with a palm tree leaf. It’s a compositional experiment of shadow and colour and an attempt at capturing a bit of the atmosphere of the place we were living back then. More

Photon(e)s 2.0

Photon(e)s 2.0 Shapes of Shades

No. 9, Jan.-Feb. 2018

“There is no story. It’s just a question of shapes and light”, Harry Gruyaert says. And, indeed, this is an example of how, despite the fact the human beings are always craving hidden stories and explanations, these are not always necessary. Sit down, breath in and just look at the colors, shapes and the way the light comes in.  More

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