Showing papers on "Purchasing power published in 2021"

Development of Friedrich von Hayekʼs theory of private money and economic implications for digital currencies

Abstract: The purpose of the research is to analyze the formation and development of Von Hayekʼs theory of private money and its application in the conditions of the digitalization The theory of private money and the concept of political economy may become the fundamental basis for the circulation and pricing of central banks digital currencies (CBDC) in the near future In this case, central planning should solve the problem of distributing money among different segments of the population, in order to avoid a significant amount of private money in well-off segments of the population Hayekʼs concept supports the introduction of an unconditional basic income (Zwolinski, 2019), where fixed amounts of government payments are distributed to all citizens through a monetary system, which is relevant during the COVID-19 pandemic The article concludes that the international nature of digital currencies will make both developing and developed economies vulnerable to “digital dollarization”, when the national currency is replaced by the currency of the digital platform Digitalization of money increases the importance of competition between private and public money In the digital economy, cash can actually disappear, and payments can center around social and economic platforms, weakening traditional monetary policy channels Governments may to ask central banks to use CBDC in order to maintain monetary policy independence The article confirms that stable digital money is preferable for foresight, calculation and accounting Hayek supported the idea of the manipulating the amount of money to stabilize the purchasing power © А Ю Михайлов, 2021

Macroeconomic Factors and Stock Price Crash Risk: Do Managers Withhold Bad News in the Crisis-Ridden Iran Market?

Abstract: The present study aims to investigate the effects of macroeconomic variables on stock price crash risk in the economically uncertain conditions of Iran’s market. This study also seeks to examine whether there is a significant relationship between some firm characteristics and falling stock prices. The sample of the study includes 152 Iranian companies listed on the Tehran Stock Exchange (TSE) between 2014 and 2019. Furthermore, the research model has been estimated using a fixed effect pattern, and the DUVOL (down-to-up volatility) measure is defined as a proxy for stock price crash risk. Consistent with our expectations, the results show that there is a positive association between the inflation and unemployment rates and stock price crash risk, whereas the GDP and exchange rates are correlated negatively with crash risk. In fact, with rising inflation and unemployment, on the one hand, the amount of savings and the purchasing power of the people have decreased, and on the other hand, it has reduced the sales of companies due to the increase in the pricing of manufactured products. In Iran’s economically uncertain situation due to sanctions, managers are trying to overstate financial performance and conceal bad news to have better access to financing; so, when the total amount of bad news accumulated over time reaches a tipping point, it leads to a stock crash. It also appears that when the exchange rate rises, Iranian investors prefer to buy companies’ shares to maintain the purchasing power of their money. Outcomes also confirm that larger firms and those with higher Return on Assets (ROA) are more sensitive to crash risk.

A discourse analysis of yellow-vest resistance against carbon taxes

Abstract: Carbon taxation is a core instrument for climate mitigation. Its implementation, however, faces popular resistance. In this paper we study one of the most emblematic mobilizations triggered by the carbon tax issue, the Yellow Vest movement in France. We use Q-methodology, a mixed-method approach to identify discourses (or viewpoints) held by protesters. We find four statistically-distinctive viewpoints, emphasizing respectively: a systemic critique of capitalism; environmental action that is fair; priority over incomes and purchasing power of common people; and inequality and the responsibilities of corporations. Our research points to the importance of ideology in shaping viewpoints and filtering attitudes towards carbon taxes. Yet beyond ideological differences, we find consensus among all discourses, in that there should be more consultation in energy transition policy; the rich and not the poor should pay the cost of transition; and the government should use tax revenue for the transition only. We conclude that, for bold carbon tax schemes to be implemented with less conflict, a much more participatory, transparent and equitable design would be necessary than the one experienced in France.

Sustainability Challenge of Eastern Europe—Historical Legacy, Belt and Road Initiative, Population Aging and Migration

Abstract: The historical legacy of Eastern European and the Balkans’ health systems was mutually interdependent and shaped by local socioeconomic circumstances. Three distinctive systems of risk sharing and health financing developed since the late XIX century were the Bismarck, Beveridge, and Semashko systems. Modern day healthcare systems in these countries are challenged by population aging, accelerated innovation in medical technology, growing purchasing power and rising demand for healthcare services. Supply-side changes contribute to demand-side efficiency bottlenecks in financing, driving up the costs of the already expensive medical care. All of the nations have a large share of citizens experiencing difficulty with affordability and access to medical care, particularly in rural and remote areas. Network of health technology assessment agencies have mushroomed over the past three decades. Principles of health economics theory and cost-effective resource allocation are slowly gaining ground in governing authorities’ mindset and decision-making processes. For many years to come, pharmaceuticals and medical services will remain dependent on out-of-pocket spending. Currently, accelerating and spreading 4.0 Industrial Revolution, together with the Belt and Road Initiative, are likely to substantially impact the further economic development of this vast region. Post-pandemic “green” recovery strategies adopted by many of the Eastern European governments shall also make this transition toward sustainable development more difficult and challenging, given the large dependency of all these economies on traditional carbon fuels.

Digital Economy Development as an Important Factor for the Country’s Economic Growth

Abstract: The development of the digital economy can stimulate the country’s economic growth, be an attractive factor for research and investors, and the development of human capital. In the digital’s context economy, requirements for components of human capital and mechanisms for its reproduction are changing. The measurement of the indicator is rather an assessment of the skills needed to take advantage of the opportunities offered by digital technologies. The speed of breakthroughs in digitalization has no historical precedent. The development and formation of the current digital economy undermine traditional ideas about businesses’ structure, how they operate, and how consumers receive services, information, and goods. The digital economy is a multi-faceted, revolutionary and important phenomenon in the modern world, in which globalization is expressed in double-digit rates of annual growth in the world economy. The relevance is that the development of the digital economy in countries is considered a key factor of economic growth in a competitive environment. Results: 1. Analysis of the development in the digital economy revealed problems: the low purchasing power of the population, undeveloped logistics channels. 2. Digitalization in the economy is a necessary investment and developing technologies, where it’s needed to use them fully. In the age of information, and exponential growth of data volume brings challenges and opportunities to traditional measurement methods based on management approaches.

Socio-economic impact of the Covid-19 pandemic: Empirical study on the supply of chicken meat in Indonesia

Abstract: The Covid-19 pandemic that occurred in Indonesia had a major impact on all sectors of life, especially health and the economy, including the supply chain of chicken meat. This study aims to examine the socio-economic impacts caused by the Covid-19 pandemic on the chicken supply chain in Indonesia. This study was conducted using a qualitative approach. The data used are statistical data obtained from the Central Bureau of Statistics in the form of secondary data from March 2019-July 2020 and supported by literature studies. Data analysis techniques use descriptive statistics. The results of the study found that the spread of Covid-19 had a major economic and social impact on the sustainability of businesses in the livestock sector especially attacking the logistics system as a means of providing food for the community. As a result, price disparities among the regions are large, price movements are extreme and pattern less (uncertainty), consumption and production decline sharply, imported products are blocked, and labor has decreased drastically. The supply chain system is disrupted due to obstruction by the distribution system so that production accumulates at the producer level; prices decrease while demand also decreases due to decreasing purchasing power, however, in areas with stable demand, high prices and lower purchasing power as a result of the layoffs of many workers. The average share received by breeders of broiler chicken meat in 2018 and 2019 ranged between 46.64% and 47.89%. However, during the Covid-19 period between June-July 2020 the breeders share was around 49.59%. The economic impact due to the Covid-19 pandemic was in the form of over supply which led to a decrease in the price of chicken on the market. In addition to having a massive economic impact, the social impact of the spread of the Covid-19 virus on chicken farming has implications, especially for conventional breeders/farmers. This Covid-19 pandemic can be momentum for conventional breeders/farmers to make changes to more modern marketing strategies, but still comply with government policies to carry out social and physical distancing.

The Distributional Effects of Trade: Theory and Evidence from the United States

Abstract: How much do consumption patterns matter for the impact of international trade on inequality? In neoclassical trade models, the effects of trade shocks on consumers' purchasing power are governed by the shares of imports in consumer expenditures, under no parametric assumptions on preferences and technology. This paper provides in-depth measurement of import shares across the income distribution in the United States, using new datasets linking expenditure and customs microdata. Contrary to common wisdom, we find that import shares are flat throughout the income distribution: the purchasing-power gains from lower trade costs are distributionally neutral. Accounting for changes in wages in addition to prices in a unified nonparametric framework, we find substantial distributional effects that arise within, but not across, income and education groups. There is little impact of a fall in trade costs on inequality, even though trade shocks generate winners and losers at all income levels, via wage changes. Institutional subscribers to the NBER working paper series, and residents of developing countries may download this paper without additional charge at www.nber.org.

The Determinants of FDI Sectoral Structure in the Central and East European EU Countries

Abstract: The EU model of market integration, based on financial openness, leads to divergence and sectoral specialization, which makes the convergence of Central and East European EU countries (CEE) in the EU questionable. The idea of the paper is that forms of foreign direct investment (FDI) have a differential effect on the growth and development of countries—i.e., it is assumed that FDI inflows into the manufacturing sector have a greater intensity and impact on economic growth than inflows into the services sector. Therefore, the aim of this paper is to analyze the system determinants and transmission mechanisms of the sectoral structure of FDI inflows on the sample of 10 CEE for the period 1995–2019. Following a critical analysis of previous research, a panel model was constructed in the empirical section. A developed credit market and the purchasing power of residents lead to greater capital inflows into the services sector, while a higher GDP growth rate and a depreciated real exchange rate lead to higher inflows into the manufacturing sector. The conclusion of the paper is that changing the structure of the domestic economy based on clear industrial and investment policies is the best way to attract developmentally efficient FDI.

A ‘popular option’ for development? Reconsidering the rise and fall of Chile’s political economy of socialism

Abstract: As Salvador Allende and his supporters forged a democratic path towards socialism, the task of building a more sovereign and egalitarian national economy became one of the Popular Unity (UP) revolution’s first priorities. To that end, Allende’s coalition promoted a massive downward redistribution of income during its first months in office while also extending state control over many of the country’s most essential industries. Chile’s food economy, including its agricultural sector, received special attention during this early period as both purchasing power and domestic production soared. However, when a combination of economic, ecological and political factors caused consumer production to stagnate, acute shortages for a wide range of goods raised questions about the viability of the UP’s plans for a more just consumer economy. The emergence of a powerful opposition movement also raised questions about the government’s reluctance to pursue substantive political changes at the same time that it implemented major economic reforms. By examining the political economy of the UP experiment in the context of Chile’s 2019–20 uprising against inequality and political exclusion, this article reconsiders the consequences of the UP’s inability to link economic transformations with changes in how political power was exercised in mid-century Chile.

The Societal Impact of Economic Anxiety

Abstract: Loss of household income and purchasing power are shown to have broad and negative societal eects. The economic anxiety accompanying this loss has its strongest impact on consumer demand, which is the major factor in a nation's gross domestic product (GDP). Negative eects of economic anxiety are also found on the propensity to vote, political trust, societal satisfaction, and the quality of life. These eects were veried

The COVID-19 pandemic and the crisis of lockdowns in Nigeria: The household food security perspective

Abstract: Background: This article argues that the lockdown policy of the Nigerian government, even though had proven to be effective in the control of the spread of the virus, adversely triggers household crises. These crises range from hunger, gender violence, shortage of food, low purchasing power and negative coping strategies. While intellectual resources have been remarkably outspoken about the effect of lockdown on Nigeria’s economy, the implications of the lockdown for household food security crisis have drawn little or no academic attention. Aim: Given this, the article examines the influence of the lockdown on households’ hunger and coping mechanisms. It further examines the nexus between coronavirus disease 2019 (COVID-19) lockdown and households’ low purchasing power. Setting: This is with the view to advance adequate strategy for minimising the effects of lockdown on food (in)security in Nigeria. Method: The article utilized a qualitative, descriptive research method. The article, is theoretical in nature, and drew its arguments from secondary sources, such as journals, books, newspapers, Internet sources, and official documents. Results: The finding indicates that the lockdown stimulates not only households’ hunger and negative coping habits but also low purchasing power. Conclusion: The article concludes that equitable and transparent distribution of palliatives is a good strategy capable of addressing households’ food (in)security crisis during Covid-19 lockdown in Nigeria.

Prospects of Zakat as Tax Credit in a New Normal COVID-19 Period

Abstract: Previous research, regarding the prospect of zakat policy as a tax credit, was conducted using the Analytic Network Process (ANP) method, using expert respondents. To obtain findings from respondents with different backgrounds, to make it more comprehensive, this research was continued by using the SEM (Structural Equation Model) method, by filling in a questionnaire, as many as 235 respondents from all over Indonesia were random. The research objective is to determine the variables that affect the preferences and participation of muzaki and taxpayers, willing to pay taxes and zakat, increase public finances, which can be used as a solution to the sharp decline in aggregate economic supply and expenditure in Indonesia, due to the COVID-19 pandemic. The results showed that the regulatory variables, zakat incentives as tax credits, technology-based services, socialization and promotion have a significant effect on the preferences of muzaki and taxpayers. Meanwhile, regulatory variables, zakat incentives as tax credits, socialization and promotion have a significant effect on muzaki and taxpayer participation. Meanwhile, technology services and preferences in this study do not have a significant effect on the participation of muzaki and taxpayers. When all sectors of the commercial economy experience a decline or stagnate, the government must be able to move the philanthropic sector, so that the economy continues to run, aggregate demand and supply continues to run, and people's purchasing power is maintained, especially for low-income people.

What drives the premium for energy-efficient apartments - green awareness or purchasing power?

Abstract: We analyze whether lower rents for energy-inefficient apartments reflect tenants’ willingness to pay due to a higher green awareness, purchasing power, or energy consumption costs. Based on a Germa ...

Artificial Shortage in Agricultural Supply Chains

Abstract: Problem Definition: Price surge of essential commodities despite inventory availability, due to artificial shortage, presents a serious threat to food security in many countries. To protect consumers' welfare, governments intervene reactively with either (i) Cash Subsidy, to increase consumers' purchasing power by directly transferring cash, or (ii) Supply Allocation, to increase product availability by importing the commodity from foreign markets and selling it at subsidized rates. Academic/Practical Relevance: This paper develops a new behavioral game-theoretic model to examine the supply chain and market dynamics that engender artificial shortage, as well as to analyze the effectiveness of various government interventions in improving consumer welfare. Methodology: We analyze a three-stage dynamic game between the government and the trader. We fully characterize the market equilibrium and the resulting consumer welfare under the base scenario of no government intervention, as well as under each of the interventions being studied. Results: The analysis demonstrates the disparate effects of different interventions on artificial shortage; while supply allocation schemes often mitigate shortage, cash subsidy can inadvertently aggravate shortage in the market. Further, empirical analysis with actual data on onion prices in India shows that the proposed model explains the data well and provides specific estimates on the implied artificial shortage. A counterfactual analysis quantifies the potential impacts of government interventions on market outcomes. Managerial Implications: The analysis shows that reactive government interventions with supply allocation schemes can have a preemptive effect to reduce the trader's incentive to create artificial shortage. While cash subsidy schemes have recently gained wide popularity in many countries, we caution governments to carefully consider the strategic response of different stakeholders in the supply chain when implementing cash subsidy schemes.

The 'Netflix plus model': can subscription financing improve access to medicines in low- and middle-income countries?

Abstract: At present, pay for prescription models are insufficient at containing costs and improving access to medicines. Subscription financing through tenders, licensing fees and unrestricted or fixed volumes can benefit stakeholders across the supply chain. Pharmaceutical manufacturers can reduce the need for marketing expenses and gain certainty in revenue. This will decrease costs, improve predictability in budget expenditure for payers and remove price as a barrier of access from patients. Inherently, low- and middle-income countries lack the purchasing power to leverage price discounts through typical price arrangements. These markets can realise substantial savings for branded and generic medicines through subscription financing. Procuring of on-patent and off-patent drugs requires separate analysis for competition effects, the length of contract and encouraging innovation in the medicine pipeline. Prices of competitive on-patent medicines and orphan drugs can be reduced through increased competition and volume. Furthermore, pooling expertise and resources through joint procurement has the potential for greater savings. Incentivising research and development within the pharmaceutical industry is essential for sustaining a competitive market, preventing monopolies and improving access to expensive treatments. However, technical capacity, forecasting demand and the quality of generic medicines present limitations which necessitate government support and international partnerships. Ultimately, improving access requires progressive financing mechanisms with patients and cost containment in mind.

Future heat stress to reduce people's purchasing power.

Abstract: With increasing carbon emissions rising temperatures are likely to impact our economies and societies profoundly. In particular, it has been shown that heat stress can strongly reduce labor productivity. The resulting economic perturbations can propagate along the global supply network. Here we show, using numerical simulations, that output losses due to heat stress alone are expected to increase by about 24% within the next 20 years, if no additional adaptation measures are taken. The subsequent market response with rising prices and supply shortages strongly reduces the consumers' purchasing power in almost all countries including the US and Europe with particularly strong effects in India, Brazil, and Indonesia. As a consequence, the producing sectors in many regions temporarily benefit from higher selling prices while decreasing their production in quantity, whereas other countries suffer losses within their entire national economy. Our results stress that, even though climate shocks may stimulate economic activity in some regions and some sectors, their unpredictability exerts increasing pressure on people's livelihood.

What Will Retirement Pensions Be Like? Analysis of Spanish Future Pensioner Households in Terms of Poverty

Abstract: The Spanish public retirement pension system, the same as that of many European countries, faces two important risks in the long term. On the one hand, the sustainability of the current pay-as-you-go system and, on the other hand, the ability to maintain an acceptable standard of living for the retired population. This paper presents a study on the current situation of the Spanish public retirement pension system and its effect on the future retired population. In recent years, the concern for the long-term sustainability of the system, which is based on pay-as-you-go and defined benefit, has been very present. For this reason, two major reforms were carried out in 2011 and 2013; however, different investigations have indicated the reduction in future retirement pensions as a possible consequence. Regarding this dilemma, this paper aims to study the future poverty risk of the retired population due to the current formulation of the system, by conducting, for this purpose, an analysis of the purchasing power of future pensioners based on the EU-Statistics on Income and Living Conditions (SILC) 2016 of the National Institute of Statistics of Spain. As a result, a future reduction in the replacement rate was observed, affecting the younger population to a greater extent, as well as an increase in poverty in pensioner households using two different scenarios.

A Socio-Economic Perspective of B40 Household Budgets in Malaysia

Abstract: This paper explores the main determinants of the socio-economic characteristics in Malaysian households in terms of budget and income. Generally, the amount of expenditures depends on the changes in household budgets; thus, income and wealth are the primary determinants of household budgets and consequently consumption patterns. In the wake of Covid-19, Malaysia’s economy has been highly impacted and people were unable to run businesses or any economic activities except for those classified as essential services such as hospitality, medical, foods and beverages, and retailing. As such, these have impacted the people with lower income earnings, especially the Bottom 40, which is classified as those with household income median of RM3,000. The B40s spend their income mainly on life necessities whereby a higher saving rate would be an assurance for higher future consumption. In view of this, the government must play its role in helping the B40s fulfill their necessities through significant policies such as increasing the amount of Bantuan Sara Hidup (BSH), providing an old-age pension, and addressing poverty problems among B40s as well as drafting a long-term plan to mitigate these problems.

Problems and perspectives of sustainable trade development in China under the one belt one road initiative

Abstract: In the paper the authors proved that China’s growth towards dominance in international trade has begun recently, but, on average, the growth of China’s trade volume has doubled every four years over the past three decades. The paper analyses that the rapid growth of the Chinese economy provides all countries around the world especially neigh boring countries, with a chance of interconnected development, which had a decisive impact on the economic prosperity of the world economy at the end of the last and at the beginning of this century. The key priority of Chinese economic policy was called attracting FDI, but gradually it focused on foreign direct investment (FDI) from China. Therefore, the “one belt, one road” initiative has brought maximum effect not only on the country itself, but on the entire global economy, and has become the basis for multilateral economic development. Accordingly, we have come to the conclusion that the project the “one belt, one road” has a goal to strengthen the geopolitical cooperation between Asia and Europe, so it is Ukraine that is important in its implementation. Ukraine is a strategically important logistics hub between Asia and Europe. It is proved that Ukraine is now a promising country in Eastern Europe and has a significant deferred purchasing power potential, which will increase if the political and economic situation in the country stabilizes.

Lifetime Cost of Living and Effective Prices: Theory and Evidence for Germany

Abstract: We develop and analyze an intertemporal cost of living index (ICOLI), also referred to as lifetime cost of living or cost of life index. The ICOLI is a geometric weighted average of effective prices, derived from constrained consumer utility maximization. Effective prices are both, money valued marginal utilities of the final unit consumed, and present values of prices for future consumption. Using the concept of duration, we derive analytical elasticities of the ICOLI with respect to consumer prices and interest rates and show their impact on lifetime welfare of consumers. We also provide empirical evidence for Germany, compute an ex post time series of the ICOLI, and gauge the welfare effects of low interest rate scenarios. We find that the financial repression policy of the ECB since 2010 contributed to substantial losses in the purchasing power of money and led to lasting welfare losses for consumers in Germany, in particular for the cohorts of young consumers. The ICOLI complements conventional price and inflation statistics and could serve as a valuable information tool for monetary policy.

Local manufacturing, local supply chains and health security in Africa: lessons from COVID-19.

Abstract: African commentators have long emphasised the importance of local manufacturing for local health security, but the argument has struggled to gain an international hearing. COVID-19 has, however, demonstrated the health dangers from extreme import dependence and low purchasing power; it has also shown the scope and capability for local industrial innovation. Local innovation and manufacturing scale-up during the pandemic was facilitated by adaptable government procurement policies and a health research base with strong links to manufacturing. Constraints included lack of local testing and accreditation facilities, and skill and finance shortages. African researchers and planners should be heard and supported when focusing on localising supply chains and tackling severe concentration risk in the interests of local health security.

The slowdown in trade: end of the “globalisation hype” and a return to normal?*

Abstract: Trade liberalisation has been a significant driver of globalisation over the past half century, but global trade has slowed in recent years. This paper argues that globalisation can also be driven by higher commodity prices, as commodities constitute a large fraction of global trade. This is reflected in trade volumes and commodity prices, which increased until around 2014 but have fallen since. Commodity price-driven globalisation implies lower living standards in advanced countries, as the higher commodity prices diminish the purchasing power of workers. Based on a Krugman (Am Econ Rev 70(5): 950-959. 1980, J Polit Econ 89(5): 959-973 1981) type model we show that the relation between globalisation and the “emergence of China” follows a hump-shaped relationship. Moreover, we argue that the “globalization hype” should come to an end with an eye on global value chains and finance.

Industrial Policy and Monopoly Capitalism in Nigeria: Lessons from the Dangote Business Conglomerate

Abstract: At the example of the Dangote conglomerate, this article investigates why pockets of efficiency formed in the Nigerian manufacturing sector and why, at the same time, structural transformation remained limited across the economy as a whole. We argue that expansion of, in this case domestic, markets can discipline learning. Yet emerging monopoly capitalism carries in it the fruit of fragile accumulation to the extent that price setting power, tax evasion and control over wages undermines the growth of purchasing power. Under expanding markets, Dangote’s monopoly position and growing profits followed from productive investment, but these were not passed down at the same rate into wages. What is more, the difficulties in taxing the conglomerate has undercut the state’s resources available for pro-poor redistribution.

We need people's WHO to solve vaccine inequity, and we need it now.

Abstract: ### Summary box As of 9 April 2021, of more than 700 million COVID-19 vaccine doses administered globally, only 0.2% have gone to low-income countries, with over 87% gone to high income countries (HICs) or upper middle-income countries.1 COVAX was established to pool demands and funds among countries to collectively negotiate an affordable price for the vaccine with vaccine manufacturers.2 The aspiration was to ensure equitable distribution of vaccines regardless of countries’ income level. This aspiration failed. COVAX’s collective purchasing power was outcompeted by governments who had greater means to pay and purchased directly from vaccine manufacturers outside COVAX. Consequently, global COVID-19 vaccine supply was left to competition among countries based on their ability to pay rather than public health needs in what can be termed ‘survival of the wealthiest’. In recognition of the vaccine inequity, civil society actors, governments of wealthy nations (eg, G7, G20) and multilateral agencies have called for redistributing excess doses from HICs to low-income middle-income countries (LMICs), …

In defense of fractional free banking: Back to fundamentals

Abstract: This paper examines the debate between the so-called fractionalists and the reservists within the Austrian School of Economics (1994 – 2005), emphasizing the maturity mismatch problem (2009 – 2019). It focuses on the fundamental arguments: the ontological view on currencies as banks’ products (IOUs) and money, the purchasing power of money, and the maturity mismatch problem. Banking activity is seen as a vital evolutionary superstructure humans use to determine the marginal utilization of existing capital resources, effectively discovering the coincidence of money interest towards natural interest levels and time preferences within society. The thesis advocates the superiority of fractional and free banking over the reservist alternative. It shows that fractional free banking is not based on property rights violations, and does not cause systematic economic cycles beyond those related to natural business errors.

Re-examining the Brazilian South–Northeast labour income gap: A decomposition approach

Abstract: The purpose of this article is to provide new evidence about the sources of regional income inequalities in Brazil along the wage distribution, taking into account the regional differentials in purchasing power.