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Ekonomista
|
2006
|
issue 5
597-617
EN
All conventional theories of balance of payments are static in nature and they do not address the issue how to create conditions that would assist economies in efforts to accelerate growth. The debates on problems related to balances of payments in industrial and developing countries most frequently are focusing on explaining the degree to which negative gaps in them constrain economic growth. There emerges a danger that premises, for policy measures deduced from conventional approaches to balance of payments theory, might lead to erroneous conclusions and thus contribute to ineffective or counter-effective decisions in macroeconomic policies. Structural complexity of the balance of payments should be taken into account when policies aiming at the elimination of the undesired gaps are contemplated. The measures to be applied should take into consideration the differing characteristics of goods that countries produce and trade.
EN
The developed economies of the European Union are generally characterized by relatively low and safe deficits in current accounts, while countries of East-Central Europe experience difficulties in coping with the ensuing gaps. The operation of market-based stabilization mechanisms is not adequately efficient in economies undergoing transformation. The remedy can be seen in the active government policies which may periodically introduce corrective measures. The success of interventionist policies in safeguarding equilibrium of payment balances and enhancing economic growth depends on the correct definition of the objectives of such policies, i.e. on the formulation of acceptable ceilings for the deficit in the medium term.
EN
The objective of the article is to point out the difficulties in calculating the cost of capital gained during the initial public offer of a small-medium firm. The classical methods of calculation lack unmeasured advantages and disadvantages of initial public offer (IPO) and they assume correlation between cost of capital and expected rate of return on investment what in the case of some firms could not always be true.
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