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Current Economic Situation (current + economic_situation)

Distribution by Scientific Domains

Humanities and Social Sciences	50%
Business, Economics, Finance and Accounting	50%

Selected Abstracts

Consumer morality in times of economic hardship: evidence from the European Social Survey

INTERNATIONAL JOURNAL OF CONSUMER STUDIES, Issue 2 2010
*Article first published online: 1 FEB 2010, Cláudia Abreu Lopes
Abstract Crimes of everyday life, often referred to as unfair or unethical practices committed in the marketplace by those who see themselves and are seen as respectable citizens, have burgeoned as a result of the transformations in the European economy in the late 20th century, namely the transition to neo-liberal markets and the emergence of consumer society. A ,cornucopia of new criminal opportunities' has given rise to a new range of crimes such as ripping software, making false insurance claims or paying cash on hand to circumvent taxes. These shady behaviours (legal or not) are part of people's experience, albeit they are collectively regarded as morally dubious. Taken collectively, crimes of everyday life are indicators of the moral stage of a particular society and therefore a valuable instrument for social and political analysis. This paper addresses the question of whether and under which conditions feelings of economic hardship trigger crimes of everyday life. A multilevel theoretical and empirical perspective that integrates theories stemming from political science, sociology, and social psychology is adopted. I start by exploring the embeddedness of economic morality in social institutions, followed by an elaboration of the concept of market anomie to account for deviant behaviour in the marketplace, to finally step down to the examination of the correspondence between social attitudes and consumer behaviour, as postulated by the Theory of Planned Behaviour. The empirical study relies on micro data from the European Social Survey (ESS) (Round 2) and attempts to model, for each country, a formative measure of crimes of everyday life based on socio-demographic variables and the current economic situation, as it is perceived by the individual (taken as a measure of relative deprivation). The resultant country-specific regression coefficients are mapped onto the broader economic and normative context of 23 European countries. The results reveal that crimes of everyday life are driven by feelings of economic hardship only in countries where normative factors dictate their deviance. In countries where fraudulent behaviour is more generalized, inner motivations to offend play a secondary role as the more privileged consumers are more likely to commit fraud as they interact more often with the market. In turn, normative aspects result from a dynamic interplay of cultural and economic factors. As the economy grows faster, the tendency to offend in the market becomes more visible, but only in countries whose gross domestic product (GDP) stands above the European average. In countries with low GDP, the normative landscape is shaped by cultural factors that seem to obfuscate the power of economic factors favourable to consumer fraud. [source]

Income Transfers Alone Won't Eradicate Poverty

POLICY STUDIES JOURNAL, Issue 4 2009
Douglas J. Besharov
Even in the current economic situation, in developed countries, rhetoric about cutting "poverty" is misleadingly outmoded,because it implicitly suggests that government income transfers can be the vehicle for achieving substantial reductions in poverty. Almost all Americans already live far above subsistence poverty: most because of their earnings, and the rest because of government transfer programs. This decline in material poverty is obscured by weaknesses in how the official U.S. poverty measure counts income. What is now called poverty is really "income inequality." Reducing income inequality is also a vitally important social goal, but it cannot be accomplished through income transfers alone. The authors argue that, although income transfers have a role to play in lessening the impact of material deprivation, real progress in raising incomes will require building the human capital of the economically disadvantaged. This means both increasing the earnings capacity of lower-income workers and reducing the number of female-headed families. [source]

On the economic interdependence between China and Japan: Challenges and possibilities

ASIA PACIFIC VIEWPOINT, Issue 2 2009
Claes G. Alvstam
Abstract The paper presents an analysis of the economic relationship between the two most important economies in Asia. Over the last decades, the Chinese and Japanese economies have become more economically interdependent, a development which will, in the long run, impact the countries' political relationship. The paper seeks to answer the question: How can China and Japan gain from the current economic situation, further enhance their relationship and increase their synergies for regional economic development? Data on trade and Foreign Direct Investment are used in combination with primary data from interviews with Japanese and Chinese companies on how they perceive the current business situation and future potential. The result of the data analysis shows that the countries have much to gain from their economic interdependence. The firms see great potential in their respective markets but are concerned about political turbulence. Three possible scenarios for the future economic relationship are presented, including fierce competition on all markets and a leveraging of resources for mutual development between Chinese and Japanese companies. [source]

Exchange Rates and Monetary Policy

AUSTRALIAN ECONOMIC PAPERS, Issue 4 2002
Vítor Gaspar
This paper looks at the relation between exchange rates and monetary policy. It focuses in particular on the role of the exchange rate of the euro in the context of the ECB's monetary policy strategy. The objective of monetary policy is to maintain price stability. The euro area is a large and relatively closed economy. Therefore, the exchange rate of the euro is not an intermediate target nor is it an objective. Nevertheless, the ECB's stability,oriented monetary policy strategy does not neglect the exchange rate of the euro. Clearly, exchange rate developments are taken into account both when looking at the transmission mechanism of monetary policy and when assessing the current economic situation and prospects for the euro area. [source]