Issue 7, 2006

The state of economic thought in the contemporary world is presented in brief, as well as its prospects related to the development of science and technology. With regard to the anniversary of the Economic Thought Journal it is pointed out: how the Journal started; its development, activities and impact on the economic society in Bulgaria; purposefulness and main themes of publications; reviews of authors and readers.

JEL: A11; B20

To formulate an overall vision of how to outline and work out adequate macroeconomic policies in perspective needs pinpointing the probable sources of economic tension as well as the respective areas of tension within the specific macroeconomic goals. There has been made an attempt in this paper to find out the major types of potential strains in Bulgarian economy in the mid-term and set out some preferable options of macroeconomic policies. The analytic study is aimed at standing up for the strategic principles of conducting macroeconomic management rather than constructing tactical ways for attaining some given short-term objectives. The whole analysis and the recommendations made are in the light of the liberal economic teaching and led especially by the belief that the key levers of macroeconomic policies are (without any claims about their hierarchical ranking) in the field of budget and monetary policy measures and on the other hand, within the scope of building of a functioning institutional environment of good quality.

JEL: Е61; Е63

The paper deals with the development of economic theory during the XX century. It aims to present some of the main steps and achievements of economic thought in the last century. Sharing the vision, that pluralism is the principal characteristics of the development of the XX century economic theory, the author successively analyses the orthodox and heterodox schools of thought. The focus is on the neoclassical school - a leading economic stream (the so-called Mainstream) in the XX century and undoubtedly so at the end of the century. The new accomplishments in methodology and theory (Microeconomics, Macroeconomics) within the boundaries of neoclassicism are being explored. From the heterodox schools of thought the author directs attention towards two of them - Institutionalism and Marxism. A number of questions in respect to Marxism and its destiny after the collapse of socialism are being raised. In the conclusion the author points out, that towards the end of the century there is a clear trend towards greater interaction and exchange of ideas between the main theoretical schools (orthodox, heterodox), which trend will influence the development of economic theory in the future.

JEL: В22; В24; В25

This paper examines the revival of political economy in various forms in the last decades. The first part is dedicated to the evolution of the definition of the economic science to lay the foundation of a better understanding of the current use of the term "political economy". The second part sets out a typology of the different theories and schools of political economy and relates them to certain characterization of the present day mainstream neoclassical economics. The last part of the paper focuses on one of the latest developments, the theory of public choice as a "new political economy": methodology, analytical apparatus, major themes and findings.

JEL: P 16; B 50; B59

This article to dedicated to the 230th anniversary of the publishing of Adam Smith`s work "The Wealth of Nations" (9 March, 1776). The subject of our study is the liberal world of Smith and social welfare. We highlight his contribution as a founder of the "homo economiqus" model, which asserts that self-interest underlies economic activity.
Special attention is given to the benefits in micro- and macroeconomic aspect from free foreign trade, the negative effects of monopolistic trade companies and the understanding of the cosmopolitan nature of capital, substantiated by Smith.
We specify the place he earmarks for the state in economy. The subject of our study are also Smith`s early ideas of the external factors /externals/, the restructuring of natural monopolies and the state as a bad proprietor.
Arguing against several authors, who ascribe in a far-fetched manner the idea of optimal distribution of resources to the neoclassic economists, we uphold the understanding that rudiments of this idea are available as early as Smith and there are grounds that he can be deservedly ranked among the forerunners of institutionalism. The new reading of Smith`s works is not only an assessment of his merits and his personality, but it is also an explanation of the present, and a look into the future.

JEL: B12; B31

An attempt is made for critical assessment of a fundamental category of the neoclassical economics by means of the contemporary institutional and evolutionary analysis. The concept of the scarcity of the economic goods is critically analysed within evolutionary-biological, social and specific market's context. In the conclusion the analysis proposes an optional answer for its specific presence in the neoclassical economics as well as for the absence of any institutional projection in the analysis of the same theoretical doctrine.

JEL: B25; B52; D01; D02

Methodology for defining poverty line and its binding to the guaranteed minimal payments is suggested. The methodology for calculation poverty line is based on the combination of two approaches - the relative and the absolute. The first one ensures connection of poverty line to the de facto income distribution into the society and the second - ensuring the minimal living standard. Methodological solutions are presented for defining guaranteed minimal payments (minimal salary/wage, social pension and social benefits), which reflex directly or indirectly the dynamics of poverty line.

JEL: I31; I32

An attempt is made to assess the expenditure and transfers of Bulgarian emigration during the period after the last census in 2001. Estimates are compared to the official information from the Bulgarian National Bank. The socio-demographic profile and the transfer behaviour of returning emigrants is revealed too. Opportunities are sought to assess the impact of transfers on household incomes, as well as the ways of their using. A representative inquiry among the Bulgarian households is conducted, as well as among their members, who had spent more than three months abroad.

JEL: F22; J61

The levels, resources and prerequisites for increasing of the employment in Bulgaria are main areas of interest of this article. The annual changes of the number of the employed in short term perspective have been projected on the basis of simple calculations with a view of catching up the levels of employment of the European Union (EU) members. The resources for employment are outlined as reduction of the number of unemployed and activation of women, youth and old members of the work force. The main socio-economic and political prerequisites for the employment are presented as well.

JEL: J21; J23; J64