The impact of a ready‐made state: East Germans in comparative perspective

To understand the impact of reunification upon Germans, we must make before and after comparisons across time, and also across central Europe. The first section shows that from the perspective of comparative Communist regimes, east Germans have been doubly advantaged, in former times because of belonging to a relatively prosperous part of the Soviet bloc and since reunification as subjects of a ‘ready‐made state’ with democracy and a wealthy social market economy. Analysis in the second section of the impact of reunification on west Germans shows that a significant proportion feel less satisfied than before, whereas the opposite is the case for east Germans. The third section introduces comparisons with Austria. Like the Federal Republic, it has enjoyed the advantages of democracy and a market economy, but without the trauma of division and reunification.     

Finance capital and peasants in Colonial West Africa: A comment on Cowen and Shenton

The presence of finance capital in colonial West Africa was predicated on the presence of imperial administration and merchant capital. From these it derived its profits. Cowen and Shenton suggested finance capital was seeking to diversify its sources of profit by engaging cocoa farmers in credit. While this may have been true for the period of cocoa boom before the First World War, it is argued in this piece that in 1938‐more than 20 years later ‐ the banks’ motivation was entirely defensive. No diversification was intended, and the action was directed at salvaging current business. This comment does not question Cowen and Shenton's ‘Fabianism’ thesis but substitutes merchant for finance capital as being in conflict with Colonial Office attitudes.     

Euroscepticism and Right-Wing Extremist Attitudes in Germany: A Result of the ‘Dialectic Nature of Progress’?

Euroscepticism is associated with a new cleavage between the ‘losers’ and the ‘winners’ of globalisation. Current research also indicates that right-wing extremist, racist, and anti-democratic attitudes are more prevalent in lower status groups, particularly those struggling with societal change. These findings are combined with a unique data set covering both topics and thus add to the growing literature on Euroscepticism while also exploring the divide between the ‘losers’ and ‘winners’ of modernisation processes. The article introduces categories of occupational status groups, namely the ‘engaged’, the ‘skilled workers’, and the ‘legworkers’, which represent different levels of involvement in modernisation processes. It explores the differences in attitudes between these groups and how those differences correlate with citizens' professional status. It is concluded that perceived subjective alienation, which manifests in racist and anti-democratic attitudes, best explains EU-scepticism.     

Managed Floating as a Monetary Policy Strategy

Although there seems to be a broad consensus among economists that purely floating or completely fixed exchange rates (the so-called corner solutions) are the only viable alternatives of exchange rate management, many countries do not behave according to this paradigm and adopt a strategy within the broad spectrum of exchange rate regimes that is limited by the two corner solutions. Many of these intermediate regimes are characterized by significant foreign exchange market interventions and a certain degree of exchange rate flexibility with non-preannounced exchange rate targets. While academic research in this area usually concentrates on some specific aspects of intermediate regimes (such as the effectiveness of interventions or institutional aspects), managed floating has rarely been analyzed as a comprehensive monetary policy strategy. In this paper, we present a monetary policy framework in which central banks simultaneously use the exchange rate and the interest rate as operating targets of monetary policy. We explain the mechanics of foreign exchange market interventions and sterilization and we explain why a central bank has an interest of controlling simultaneously the two operating targets. We derive the monetary policy rules for the two operating targets from a simple open economy macro model in which the uncovered interest parity condition and the monetary conditions index play a central role.     

Distributive justice and willingness to pay for municipality child care

With the aim of investigating factors affecting willingness to pay for municipality child care, a survey was undertaken in Sweden of 1840 parents living in five municipalities of different sizes. On the basis of the greed-efficiency-fairness hypothesis (Wilke, 1991) which is supported by results from experimental social dilemma research, it was hypothesized that perceived fairness of how the quality of child care is distributed (equal, proportional to need, or proportional to payment) as well as of method of payment (collectively by taxes or proportional to use by fees) would be important determinants of willingness to pay. Results showed that perceived fairness of how quality of child care is distributed played some role but that other factors had stronger effects. Perhaps also reflecting fairness considerations, willingness to pay by fees was on average higher than willingness to pay by taxes. Predicted from previous research, willingness to pay by taxes was furthermore found to increase with income and degree of use. However, willingness to pay by taxes showed an increase rather than the predicted decrease with municipality size.     

Sentencing private benefits in takeover contest

We present a model of profit diversion into a takeover environment. The model incorporates a legal environment characterized by a probability of being convicted, a monetary sanction (ex-ante protection) and the costs of administrating the takeover (ex-post protection). We show that the extraction of private benefits is reduced by the existence of such a legal environment, which is consistent with a number of empirical studies. It also predicts that legal environment can conduct the bidder to acquire more than 50% of the share due to the impact of the final holding of the bidder on the fine. The paper contributes to the current debate on regulation of white-collar crime. It highlights the trade-off between the ex-post profit diversion and minority protection, and the ex-ante probability of efficient takeovers. But, considering simultaneously two tools of protection, the ex-ante and the ex-post ones, which do not have the same impact, we derive some guidelines in order to analyze the current trend of the US and the EU laws.