Issue 1, 2010

The study presents information and comments on frame documents of the Global Commission of International Migration and the Development Center of OECD, which set the main principle and directions for improving the global approach to the migration. Special attention is drawn to the financing of this approach, as well as to the adopted in October 2008 during the French chairmanship "European Pact on Migration and Asylum".
The paper presents the migration flows, practiced by the government policies of restraining, or on the contrary - of encouraging the international migration. Special attention is drawn to the migration pressure and situation in the EU countries. The development and debate on the European migration policy is traced. A review of many European initiatives for encouraging the global approach is made, concerning the legal migration and interaction of the illegal migration, as well as its geographic expedience. The focus is on the interdependency "migration - development". The study ends with presentation of the policies for migration and integration, carried out in Bulgaria. Sought are opportunities for synchronizing the management of the migration and cooperation for development in the context of the concrete Bulgarian conditions.
JEL: F01; F22; J61; 015; 019

The paper studies the concept of utility of money. The latter is defined as the ability to generate additional income. Utility of money is maximized by equalizing dynamic marginal utility of money and marginal cost. The subsequent differential equation links up income velocity of money acceleration and equilibrium convergence. It is proved that individuals' utility of money maximization objectives may be aggregated at macro level and can be used for monetary policy optimization. Lagrangian multipliers technique is applied to obtain a relationship between income velocity of money and some supplementary constraints. The paper also makes distinction between short-term and long-term utility of money. Conclusions about different types of monetary policies are derived. The Appendix establishes connections with production and investment on the basis of optimal control technique.
JEL: E00; E31; E51

The actuality of global supply chain management increases together with the growing rates of globalization and the extending specialization of organizations which makes them dependant on each other. The ways to increase the effectiveness of material, information, financial and knowledge flows management in the global supply chains are based on the proper evaluation of a great number of factors from the international environment, the strategic configuration of the supply chain concerning its members, the functions they perform and the location of their operations, as well as on the continuous coordination of the activities in the chain through information and knowledge exchange and the development of relationships of trust and cooperation. On the basis of a research, carried out in Bulgarian organizations participating in global supply chains, the paper reveals the integration practices applied in the relationships with their foreign partners. There are proofs for the absence of readiness amongst the researched organizations to apply practices characteristic for the highly developed countries as well as to make efforts for integration with their Bulgarian contracting parties.
JEL: R11; R19; C49; O18

A global financial crisis hit the world in late 2008. It has become clear that this financial crisis will have a deep impact on countries' trade volumes and investment plans. When the crisis has started on the financial markets, it affected developed countries as much as developing ones. Since the beginning of September 2008, it has been deepening in USA, while spreading out to the world. Turkey is one of the countries affected from this global economic crisis. Turkey had became dependant on capital accumulation movements after 1990s. Growth with capital accumulation movements constituted a relationship between capital movements and balance of payment. Growth related to short run capital movements provided money from money instead of production. So it affects investments negatively and this makes a negative effect on growth in long run period. The clearest effect of global crisis on Turkey is unemployment and inflation. Although it is very difficult for Turkey to put these two in order, in the last years they have been decreasing through policies, but with this global crisis they have increased again.
JEL: G01; G21; G28; N20

In 1991 the Egyptian government launches a wide-scale stabilization and reform program. Its main goal is achieving sufficient rates of growth. This paper in general aims to present the Egyptian experience as a successful example of a developing country. An evaluation of the privatization is made based on economic indexes and criteria.
The privatization program in Egypt is carried out after long studies and analyses of the experience of many developed and developing countries. It turns out that there is no chance for success of the program for economic reform and overcoming the constant worsening of the national economy, unless structural reforms of the state sector are done. They should work for activating the role of the sector, together with the private sector. The country puts serious efforts in the change of ownership, mainly through privatization.
Despite the starting of the Egyptian privatization in April 1996, preceded by many moves for sale of enterprises from the state sector, the dispute between the government and the representatives of the political trends continues.
That is why this paper sets an important goal: to outline important contradictions, arguments, discussions, and to draw conclusions, recommendations and evaluations of the privatization program of Arab Republic of Egypt.
JEL: F59; N47; R11; O11

The objective of this paper is to answer the following question: can the central bank of Egypt achieve the goal of price stability under the currently applied monetary targeting regime? The answer depends on whether or not the demand for money function is stable in Egypt. Using quarterly data on the period 1995-2007, the study estimated the long run demand for money function in Egypt. By testing its stability for structural change, the demand for money function is found instable. Thus, the study concludes that the central bank of Egypt cannot achieve price stability under the currently applied monetary targeting regime.
JEL: E40; E41; E42

This paper illustrates the results of a case study on teaching economics issues employing an experiment where students were made to play quantity-setting games employing the Stackelberg and Cournot theory of oligopoly. A strictly theoretical approach to the study of the oligopolistic market structure is replaced by a discovery-learning method. The goal of the in-class experiment is both to illustrate to the students the economics theory trough a learning by doing approach and to allow the instructors to discover how students act when they have to develop their own strategies, placing them in a role similar to that of firms aiming to maximize the profits. The main finding shows how students converged toward the Nash-equilibrium quantity. Several firms or groups of students, who were producing high output level at the beginning of the game later on reduced their output since they realized that their profit could increase by just producing less. At the end of the experiment, students have emphasized that they have really learned what is like to interact in a market structure where firms can influence the market variables but not absolutely control them.
JEL: A22; D43