Challenges of Contemporary Economics


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Volume 13 (2019) Volume 12 (2018) Volume 11 (2017) Volume 10 (2016) Volume 9 (2015) Volume 8 (2014) Volume 7 (2013) Volume 6 (2012) Volume 5 (2011) Volume 4 (2010) Volume 3 (2009) Volume 2 (2008) Volume 1 (2007)

Volume 4 Issue 2 (2010)

Microeconomics of the Productivity, Price Indicators and Farm Incomes. Analytical Approach original article

pp. 5-20 | First published in 22 June 2010 | DOI:

Włodzimierz Rembisz


The paper develops a farm producer behavior type model to analyze the impact ofa input productivity and price change on farm incomes. The theoretical analysis showsthe consequences of the balance between the increase of production factor prices andtheir productivity improvement in the condition of stable procurement price for the farmproducer’s income. The cost effect of the production factors price increment and itsneutralization by productivity (TFP-type) growth is examined as well as – some aspectsof the inputs shares (returns) and costs in the produce value. The article argues that laborinput productivity as an endogenous factor, is an essential for farm incomes growthassuming the specified type of the farm producer utility function (its equations andvariables) as well as no the compensative procurement price change conditions. Someempirical evidence is attached however more work in that respect is foreseen.

Monetary Policy and Financial (In)Stability original article

pp. 21-33 | First published in 22 June 2010 | DOI:

Adam Koronowski


This paper presents how monetary policy, restricted only by price stability, may easilybecome propitious to asset inflation and – eventually – to a financial crisis. This risk isparticularly high when the financial system lacks proper regulation and effectivesupervision. Hasty liberalization, negligence of official oversight and „Greenspandoctrine” which refuted any activist policy promoting financial stability characterizedFed’s monetary policy under the former Fed’s governor. The paper also analyses anotheraspect of the linkages between monetary policy and financial crises – monetary policyreaction to financial crises. It is not surprising that it consists of cutting interest ratesand bail-out of insolvent, systemically important financial institutions. Such policy,especially when run too long and changed too abruptly, not only creates moral hazardsbut it also sets the stage for another „search for yield” and build-up of anotherspeculative bubble. As a result, monetary policy becomes asymmetric and pro-cyclical.Fed’s reaction to the recent crisis seems to be very much in line with this pattern typicalof Fed’s policy in the past. However, this time the scale of flooding the economy withliquidity and – as a consequence – the risks of future major imbalances in the financialsystem are unprecedented. A general conclusion of the paper says that there can’t bea sound financial and economic system unless money itself is a scarce resource. Howevertrivial this statement is, monetary policy of some central banks seems to miss the point.

The Global Economic Crisis and the Global Accumulation of Capital original article

pp. 35-51 | First published in 22 June 2010 | DOI:

Wojciech Błasiak


The article presents a thesis that the current global economic crisis is the SecondGreat Depression, after the First Great Depression of the 30s. This is a global crisis ofcapital accumulation, which is caused by insufficient global demand. The author analy -ses the theoretical output of John Maynard Keynes, Michał Kalecki, Paul Baran and PaulSweezy. The post-war „Golden Age” of the capitalist economy ended in 1973 with a de -ep stag flation of the 70s and 80s. Capitals searching for profitable investment, started tobe invested in financial speculation, growing since the 80s. This speculation was enabledon a global scale by the Washington Consensus in the 90s. The explosion of financializa -tion of the global economy began. The author presents the analyses of Paul Sweezy andHarry Magdoff, who argued that this was financialization of global accumulation of ca -pital in a form of world financial speculation. This process was completed by the finan -cial crash in 2008, which was the implosion of global speculative balloons. Economicsand global economic policy faced challenges of creating new world economic order.

Problems of Economic Development in Reunified Germany. Retrospective Approach original article

pp. 53-73 | First published in 22 June 2010 | DOI:

Marta Gotz


Does Eastern Germany differ significantly from Western part in economic terms?How have new Bundesländer been developing over past twenty years? How fast has Eastbeen catching up with West? What could have hampered convergence? How today areGerman states equipped with factors determining future growth? How the newBundesländer performed do compared with the old ones? This paper seeks to addressabove mentioned questions. It offers a comprehensive review of key economicdevelopments of two decades of reunited Germany. Particularly it examines currenteconomic landscape; investigates convergence processes taking place since reunificationand tries to identify most likely impediments hampering full catching up. Finally, it aimsat assessing contemporary growth potential of German states. With respect to the startingpoint – poor performance of East Germany back in 1990 the progress made and resultsachieved are impressive. Though, comparing the situation with Western part of the country– significant discrepancies continue to exist. Certainly, assessment of the last twenty yearsof reunited Germany hinges much upon perspective taken. Two decades after Berlin WallFall opinions on economic consequences of reunification are more balanced, since „muchhas been achieved, but much still needs to be done”.

Factors Affecting Labour Productivity in Manufacturing Enterprises original article

pp. 75-87 | First published in 22 June 2010 | DOI:

Zbigniew Gołaś


The article presents the results of the analysis of the factors influencing labourproductivity in the manufacturing business sector in 2004–2008. Labour productivity wasanalyzed in the context of the assets productivity, technical equipment of work, labourintensity of production, wages, value added and depreciation costs, and using linearstepwise regression. The study shows that despite significant progress, the level of labourproductivity in domestic manufacturing significantly lower than the average in theEuropean Union. Lower than in Poland, the level of labour productivity gain onlycompanies in Romania, Bulgaria, Lithuania, Latvia and Estonia. Estimated parametersof the regression function showed that the most important determinants of labourproductivity in manufacturing are technical equipment of work, labour intensity ofproduction, assets productivity, level of added value in relation to revenues. These factorsexplain the variability of labour productivity in 2004–2008 in a high degree.

Trend of Average Wages as Indicator of Hypothetical Money Illusion original article

pp. 89-100 | First published in 22 June 2010 | DOI:

Julian Daszkowski


The definition of wage in Poland not before 1998 includes any value of social securitycontribution. Changed definition creates higher level of reported wages, but was expectednot to influence the take home pay. Nevertheless, the trend of average wages, after a shortperiod, has returned to its previous line. Such effect is explained in the term of moneyillusion.

Employee’s Participation in Management of European, American and Japanese Companies original article

pp. 101-109 | First published in 22 June 2010 | DOI:

Joanna Radomska


The article describes the conditions of implementing the employee’s participation inmanagement and analyzes the differences that are observed in European, Japanese andAmerican companies. Moreover, Author shows different participation approaches,connected with culture, tradition and experiences of enterprises. That’s why there is noparticipation model, which could be recommended to be used in most global companies.

New Phenomenon of Commercial Corruption original article

pp. 111-128 | First published in 22 June 2010 | DOI:

Krzysztof Nowakowski


This article is about increase corruption in private sector as commercial corruption.This establishes a wide understanding of that phenomenon in social science and law.Corruption and bribery are types of fraud and are linked with the private sector too.Although certain types of corruption will decline as the private sector grows andconsolidates, other new types involving private sector firms may increase. The commercialcorruption can be described as relation inside of an organization and as relation betweenfirms. Corruption in private sector in Poland is connected with social distrust and specific organizational culture, too. Commercial corruption is a familiar feature of their societiesand has been the focus of law enforcement and institutional reform. Many others problemsdo not change the fact that such corruption is a new important problem and causes lostof competitiveness and creates a substitute for fair market and competition in Polisheconomy and abroad.

In Process of the Intelligent Organization Building original article

pp. 129-140 | First published in 22 June 2010 | DOI:

Krzysztof Kocurek


The starting point for the deliberations in this article is the issue of the key aspectsand conditions of effective learning in the intelligent organization. The author brieflydescribes learning process that leads to the development and better use of knowledge in the enterprise. This article presents an analysis of the factors that determine new rules ofknowledge management in the organization. The author focuses on the essence andattributes of knowledge-based organizations. In the final section of the article, thedifferences between the features of the traditional and knowledge age organizations arepointed out.


Budgetary Approach to Project Management by Percentage of Completion Method original article

pp. 141-159 | First published in 22 June 2010 | DOI:

Leszek Borowiec


Efficient and effective project management process is made possible by the use ofmethods and techniques of project management. The aim of this paper is to present theproblems of project management by using Percentage of Completion method. Theresearch material was gathered based on the experience in implementing this method bythe Johnson Controls International Company.The article attempts to demonstrate the validity of the thesis that the POC projectmanagement method, allows for effective implementation and monitoring of the projectand thus is an effective tool in the managing of companies which exploit the budgetaryapproach. The study presents planning process of basic parameters affecting theeffectiveness of the project (such as costs, revenue, margin) and characterized how theprimary measurements used to evaluate it. The present theme is illustrating by numerousexamples for showing the essence of the raised problems and the results are presentingby using descriptive methods, graphical and tabular.


Performance Prismas an Innovative Concept of the Organizational Activity Results Measurement original article

pp. 161-174 | First published in 22 June 2010 | DOI:

Arkadiusz Jagiełło, Wojciech Kirsz, Jakub Kapnik


The article presents an innovative method of the organization activity resultsmeasurement which is called Performance Measurement System. It is kind of controlsystem which can help to improve the competitive advantages of organization.


The Internal Audit Outsourcing original article

pp. 175-183 | First published in 22 June 2010 | DOI:

Grzegorz Gołębiowski


The article explores an issue of the internal audit outsourcing. It indicates thedifferences between internal audit, outsourcing and cosourcing of this service as well astheir advantages and disadvantages. Drawing from the research on internal auditoutsourcing the recent market trends were identified as well as motivations for choosingdifferent forms of internal auditing.