Issue 6, 2013

This study considers the main economic growth models from the perspective of their relation to the external sector. It defines the advantages and drawbacks of the export-led model and of the import-substitution model and sheds light on the growth constraints ensuing from the balance of payments and the elasticities of imports and exports. It analyses the prerequisites for selection of one or another growth model and comes to the conclusion that Bulgaria will have to implement an export-oriented growth model within a medium-term perspective. In this relation, it makes proposals aimed at improving the country’s foreign trade policy.
JEL: F4; O4

The article presents an analysis on the budget balance as a key indicator of the fiscal sector processes. The text considers different techniques for its funding - from the fiscal reserve and via government debt. Total government revenues and expenditures, with their respective structure and trend patterns, are revealed as determinants of the budget balance. It is on this basis that major problems in the formation of government revenues and expenditures, which illustrate the dynamics of the budget balance, are highlighted. The structure of public budgets is a focal point in the analysis, which helps elaborate on factors generating surpluses (government budget and relations with the EU) and deficits - the municipal and social security sectors. This perspective allows us to consider the total budget deficit as a result of the inability of government budget deficits and relations with the EU to cover the deficits of municipalities and social security. Finally the analysis concentrates on the structure and current issues with tax revenues. The economic effects of income taxes are brought to the fore, as it is believed that they directly affect economic activity and economic growth. A strategy presenting a step by step solution to the issues discussed throughout the analysis of the fiscal sector is put forth.
JEL: E62; G17; H20

The article traces the evolution of the European Commission’s ideas and proposals for the establishment of a genuine resolution regime for credit institutions in Member States and the Banking Union. It examines the common resolution regime, to be introduced by the Bank Recovery and Resolution Directive, which will serve as a basis for the operation of the Single Resolution Mechanism within the Banking Union. The analysis focuses on the characteristic features of the bail-in tool as an alternative to bailout. Special emphasis is placed on the on-going debate at the EU institutions on selected key issues of bank resolution and bail in, as reflected by comparing the initial Commission proposal for the Bank recovery and resolution Directive with the follow up Council’s general approach agreement on it.
JEL: G21; G28; G32; G33

The main concepts and analyses of the book „Psychology of Crowds” by G. Le Bon have been presented in this article. Some of them are discussed and various positions are formulated from the point of view of contemporary socio-political, economic and social environment. The relation between the behavior of the crowd and the policy is highlighted. The attitude is focused that crowds are a kind of valve to release public tension and a possible corrective tool or source of management policy. The arguments on the interaction between government and the eventual impact on the changes by the crowd are also directed to this topic. Some interrelations among the political, economic and social potential and the power of the pressure by the crowds are outlined here as well.
JEL: H11; A13