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EN
In this paper the authors deal with a question of how imperfect flexibility of interest rate and prices of capital goods on market of capital influences welfare if an economy is submitted to technology shocks. By the use of the basic real-business-cycle model they explain how positive technology shocks may lower welfare. The authors identify factors influencing the need of flexible interest rate and flexible prices of capital goods. Their model predicts significant influence of elasticity of substitution of factors of production, of persistency and of intensity of technology shocks on welfare under the conditions of imperfect working capital market. Efficient capital market becomes more important with a slower rate of operation of diminishing marginal product of capital, lower persistency and higher intensity of technology shocks.
EN
Single market is the basic pillar of the EU’s economic integration. Its functioning influences Union’s economic growth and its global macroeconomic performance. Article analyses current state of market integration resulting from economic freedoms of common market – free movement of goods, persons, services, and capital. Key areas where economic protectionism of the EU member states persists are in focus. Even though goods and financial markets were already integrated to a large extent, services, labour, and public procurement markets are still national in character. Macro- and microeconomic effects of the creation of single market are also constituent part of the analysis.
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