Journal of Economics - Obsahy ročníkov

This paper assesses exchange rate development and volatility in six new EU member states during the period November 1996 – April 2006. The development is examined by calculating various rates of return and the exchange rate volatility is analyzed using moving average standard deviations of the annualized daily returns of the nominal bilateral exchange rates. The three ERM II participating currencies (SIT, CYP, SKK) entered into the mechanism at the optimal time of stable exchange rate development and low volatility. However, the admissible fluctuation band ±2.25% seems to be too narrow for the remaining three currencies (CZK, HUF, PLN). Thus, these currencies should remain out of ERM II for some time. Keywords: exchange rates, rate of return, volatility, ERM II, exchange rate stability criterion, new EU members states JEL Classification: F31

The research uses a portfolio simulation approach (further only PSA) to analyze an integrated market and credit risk of Slovak banks. The model allows us to analyze the relationship between financial environment volatility and the potential losses faced by financial institutions operating in Slovakia due to correlated market and credit risks. In the current study, we apply the model to a set of three (hypothetical) banks operating in Slovakia. The proposed simulation model explic-itly links changes in interest rates, foreign exchange rates and sector of GDP in Slovakia, with the distribution of possible future capital ratios of the Slovak hypothetical banks. The model discussed in the article does not aim at evaluating the current state of the financial risk measurement methods in the banking sector in Slovakia, thus it proposes a methodology of how to solve the relations between market risk and credit risk measurements in the specific bank portfolio. Keywords: portfolio simulation, market risk, credit risk, financial lending, banking risk JEL Classification: C15, G11, G21

Law and Economics is one of the fastest-growing areas of applied economics. It employs the standard microeconomic tools and concepts to explain legal and political rules, social conventions and norms, firms and contracts, government organisations, and other institutions. Economists started to enrich legal science and lawmaking processes. This is of a crucial importance, since law shall be regarded as one of the factors that have a capacity to influence the output. Therefore, modern regulatory state must ensure a deeper and wider commitment to cost-benefit analysis in the legislative processes. Law and Economics brings several novelists for law apprehensions. Some of them within the framework of a contract and law making are to be found in the text. Keywords: law and economics, law, contract, complete and incomplete contract theory, regulation, common law, rationality, irrationality, Kaldor-Hicks, cost and benefit, Posner JEL Classification: G10, K00, K12, K40

Neoclassical interpretation of Keynes’s thoughts based on IS-LM model are well known and widely accepted, mainly because of rather simple and straight-forward mathematical components describing relations between effective demand and liquidity preference theory. Despite that, this interpretation suppressed Keynes’s novelty and contribution to economic theory. In that sense, Hicks ground off real bite of General Theory whilst laid basis on the neoclassical syn-thesis. Further development and expansion of banking services created new plat-form for postkeynesian monetary theory of production, which is developed from rigorous analysis of banking money and production. Bernard Schmitt’s contribu-tion to further development of Keynes’s theory is without doubt enriching mo-dern economic thinking, which is important in the light of rapid development of banking systems during the last 25 years. Keywords: IS-LM model, investment, saving, demand and supply of money, postkeynesian theory JEL Classification: E12, E21, E41

This article examines the long run relationship between economic growth and stock prices for Canada and the United States through cointegration estimation procedure, and it implements the Vector Error Correction Models (VECM) to abstract simultaneously the short- and long-run information in the modelling process. Results from the cointegration tests reveal that economic growth and stock prices share long run equilibrium relationship for both Canada and the U.S. The results from the VECM indicate that for the U.S., causality runs from economic growth to stock prices but not vice versa. However for Canada, the results reveal that there is a bidirectional causality between economic growth and stock prices. Keywords: stock returns, interest rates, economic growth, Canada, the United States JEL Classification: E44

The article deals with the results of a comparative investigation of corporate codes of ethics in Western German and Slovak firms. The objective of this study is to highlight the differences between corporate codes of ethics of Western Germany and Slovakia and to analyse, whether they can be traced back to the specific situation of transformation in Slovakia compared to the stable context the firms in Western Germany are embedded in. We concentrated our analysis on two areas, the internal and external stakeholders addressed by the codes and the issues highlighted by the codes. With stakeholders we found that Slovak firms address more stakeholders groups in their codes. With the issues highlighted we found that Slovak firms raise more issues in their codes of ethics. We were able to interpret the differences as specific to the transformational situation of the Slovak companies. Keywords: corporate codes of ethics, Slovak firms, Western Germany firms, internal and external stakeholders, ethical issues, transformation JEL Classification: Z13

Slovak Republic as a member state of the European Union is obliged to implement the directive of EU Board number 2003/48/ES beginning from June 3, 2003 concerning income taxes. The effort of EU member states is to achieve effective income taxes on savings in the form of income from interest paid in that member state in which the legal person – resident of the other member state has its residence. Stated directive does not involve the area of taxing stated incomes of physical persons – residents. The automatic information exchange about taxpayers plays a very important role in international taxation. The EU member states are joining their procedure in uncovering of tax evasions and illegal methods also in the areas that are dependent on the member states, or in the areas of third countries that are actually not member states, but they are part of the European economic space. Keywords: legal person, resident, legal person, non resident, incomes from savings in the form of payments of interests, withholding tax, automatic information exchange JEL Classification: H26, H20