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• Financial Crisis, Economic Policy and Economics

  19-34

  Jozsef Moczar

  Views:

  144

  Concerning the financial crisis in 2007-2009 many politicians and economists, in addition
  to representatives of other disciplines have asked: why could it not have been avoided,
  why could it not have been forecast? The present paper provides a new answer to these
  questions. The main argument is that empirical economic policy reached a deadlock when
  economists acknowledged the equilibrium models based on efficient market theory. The
  static equilibrium paradigm which appeared in the middle of last century has strongly
  prevailed to the present day, leaving aside Kornai’s (1971) or Benassy’s (1982) or Goodwin’s
  (1991) warnings. Since the economy is never in equilibrium the simultaneous equations
  describing it may not provide any guide for politicians; what they should do and how they
  should do it in a time of economic crisis. The present author’s newest book (Móczár, 2008),
  besides the dynamic equilibrium, also sketches a new paradigm, i.e., non equilibrium
  modelling, instead of the orthodox equilibrium paradigm, which allows us to treat bubbles,
  to regulate money markets etc. Its necessity is outlined here.

  JEL classification: E00, E5, E6, G28 

• On the Global Expansion of Venture Capital

  60-69

  Judit Edit Futó

  Views:

  139

  The venture capital industry has also been negatively affected worldwide by the financial crisis of 2008, thus the usual investment conditions have changed. One aim of the study is to provide an overview of the changes. As shown in the global trends, the level of the global annual venture capital investments in 2013 just reached the level of before 2008. Although in some Asian countries (China and India) the decline was not significant, unlike in the European countries. Another aim of the study is to examine whether there is a reality of an integrated global venture capital model, or it is different in each country. If there is a difference, then what kind of explanatory factors can be tracked back. On the basis of extensive international literature the article argues that there are a number of factors such as the characteristics of financial systems, the legal and institutional barriers and the culture that affect the emergence of an integrated venture capital model.

  Journal of Economic Literature (JEL) codes: G24

• Issues of the Regulation of Residential Credits

  44-51

  Tamas Prugberger

  Zoltan Nagy

  Views:

  198

  The study focuses on the theoretical and practical issues of lending from the legal regulation point of view. After the 90’s the consumer social model was set up in Hungary, and it was linked to a fairly broad consumer credit activity. However, the regulation of lending was insufficient in many areas; consumer protection has hardly existed in the financial services market. Debtors were unprotected when facing the financial institutions, which concluded contracts not in their favour and restricted their rights. The economic crisis, and the great number of insolvent debtors, has emerged as a social problem for legislators, thus enabling them to amend lending rules and strengthen consumer protection in this area.

  JEL classification: K 30

• The Relevance of the Washington Consensus for the Post-communist Countries

  5-25

  Peter Mihalyi

  Views:

  239

  The Washington Consensus (WC) is 20 years old now. With hindsight, its main significance is the unification of the normative economics. Prior to the WC, it was widely accepted that different policies should be pursued in the developed and in the underdeveloped economies. It was a sheer coincidence that the emergence of WC occurred a few months before the collapse of the communist systems of Eastern Europe and the Soviet Union. Many scholars believe that the WC is responsible for the recurring economic crisis of the last two decades. I reject this view. A 200-year track record confirms that depressions and financial crisis have been always the intrinsic components of market economies – for the reasons identified by Marx and Schumpeter long time ago.

  Journal of Economic Literature (JEL) classification: F02, F23, F41, P11, P36

• Development of the Russian securities market

  56-74

  Sandor Rethi

  Views:

  115

  The Russian securities market, considered relatively modern, came about within a year or two in the first half of the nineties without any antecedents and tradition. Parallel to the formation of the institution system both the stock and the bond market underwent a rapid expansion, which continued steadily up to the outburst of the financial crisis in 1997/1998. The collapse in August and September 1998 was followed by a relatively long stabilization period, and later security prices began to increase again and bond prices also levelled off. The current paper analyses the last decade of the Russian securities market, introduces its phases, gives a detailed description of the road leading to the crisis and collapse examining the peculiarities in a comprehensive way.