The journal of economic asymmetries 

About: The journal of economic asymmetries is an academic journal published by Elsevier BV. The journal publishes majorly in the area(s): Monetary policy & Interest rate. It has an ISSN identifier of 1703-4949. Over the lifetime, 427 publications have been published receiving 3640 citations. The journal is also known as: JEA.

Economic policy uncertainty: A literature review

Abstract: The significance of uncertainty in policies related to economic decisions is higher than ever before in today’s interconnected world. This study contributes to existing research by reviewing the literature on the impact of economic policy uncertainty on corporations and economies worldwide. We show the importance of measuring and tracking uncertainty by highlighting its influence on financial decisions. We examine the growing number of studies that use the economic policy uncertainty index (EPU) of Baker, Bloom, and Davis (2016) as a key factor in measuring uncertainty. We then review the impact of EPU on financial markets, macro and micro level, stock markets, corporate behavior, and risk management. Then, we document the asymmetric policy responses of economic uncertainty. Overall, policy uncertainty has a significant impact on firm financial policies as well as on consumer spending. Specifically, corporations act more conservatively during times of high uncertainty, thereby slowing investments in production and employment. In addition to the local effect of EPU, it spills over to other countries.

The impact of FDI on economic growth in Eurozone countries

Abstract: The purpose of the study is twofold: Firstly, to analyze the relationship between the foreign direct investments and economic growth and secondly, to estimate the effect of foreign direct investments on economic growth in the Eurozone countries over the period of 2002–2012. The paper employs panel data estimations to test the relationship between the variables. The empirical analysis reveals that there is a positive long-run cointegrating relationship between FDI stock and economic growth. By using the Fully Modified OLS (FMOLS) and Dynamic OLS (DOLS) methods the elasticity of GDP with respect to FDI is 0.054% and 0.147%, respectively. The results also indicate that the stock of foreign direct investment is a significant factor that positively affects economic growth in the Eurozone countries.

Money and Economic Growth

Abstract: The cash in advance and money in utility function models are used to examine whether the nature of fluctuations in economic activities and welfare in three interdependent economies are related to the stocks and growth rate of money When the money is exogenously introduced in the form of cash in advance, it serves as a medium of exchange and the rate of return in real and nominal assets become equal Idiosyncratic technological shocks generate fluctuations in the growth rates of capital, output, prices, money, consumption, investment, labour supply and lifetime utilities of households When households have money endogenously in their utility functions, the stock of money in excess of that required for transactions causes inflation and reduces the amount of capital stock and output in these economies Both CIA and MIU models support for a steady growth rate of money according to the growth rate of output While the inflation targeting by manipulating the interest rates for macroeconomic stability is theoretically a prudent policy move, it is impossible for a central bank to eliminate business cycles that arise from shocks to production technology or to other structural features of an economy

Asymmetric paths of public debts and of general government deficits across countries within and outside the European monetary unification and economic policy of debt dissolution

Abstract: The aim of this study is to analyze the evolution of public debts and of government deficits/surplus across European countries within and outside the monetary unification. In particular, this study compares the dynamics of public debts and of general government deficits between European countries within and outside the monetary unification for the preceding and subsequent period the introduction of the Euro currency. Statistical analyses show that the evolution of public debts and government deficits/surplus is significantly different between European countries. Nations within the European monetary unification seem to have, from 2001, deteriorated trends of sovereign debts and government deficits in comparison with countries outside the European monetary unification. This dissimilar evolution of public debts and of government deficits between European countries can be due to manifold factors. These asymmetric paths of public debts and of government deficits across European countries may be one of contributing factors that generates uncertain scenarios and negative socioeconomic effects on patterns of growth of the overall European Union economy. A economic policy of debt dissolution is suggested.

The relation between price setting in markets and asymmetries of systems of measurement of goods

Abstract: Markets, in an increasingly globalized world, have still dissimilar systems of measurement of goods due to different historical developmental paths of nations. A problem in economics is whether and how these asymmetries of systems of measurement of goods affect the prices in markets. The present study confronts this problem here by analyzing some prices of goods in U.S. and Italian economies that apply different systems of measurement of mass and liquid ( i.e. , United States Customary System vs. Metric System). The inductive study analyses the prices of milk, per gallon and liter, and the prices of a consumption bundle of fresh vegetables and fruit, per pound and kg, between the USA and Italy. The statistical evidence seems in general to support the hypothesis that differences of prices per same quantity and/or volume of good can be also explained by asymmetries in systems of measurement adopted in markets. In particular, results show that markets with basic units of measurement of mass and/or liquid having more quantity of good, e.g. kg rather than pound (0.4535kg) and/or gallon (3.78 Liter) rather than liter, induce lower levels of average price per same quantity, ceteris paribus . These findings may be due to relativity of cognitive processes of decision makers, which apply frugal way of reasoning in price setting, based on satisficing behaviour and bounded rationality, by associating a legal basic unit of measurement of mass and/or liquid to an official monetary unit. Hence, this study shows that basic units of measurement of goods with more quantity seem to generate lower average prices in markets and, as a consequence, higher benefits for consumers. The main aim of this article is therefore to clarify and to generalize whenever possible, the relation between dissimilar systems of measurement of goods and price setting in markets of different countries.