Research
Conflicts of Interest in Agency Theory: A Theoretical Overview
Object of this research is to show that, within the framework of the current debate on the government of company, the starting point of the theory of agency is the divergence of interests between the owners and the leaders. It results a relation from it from agency, in which, one of the parts, indicated like agent, acts in the name of the other part, called the principal. So, principal and agency can have interest divergences. Our discussion thread throughout this research is the interest conflicts in the theory of agency.
Policy Mix and Economic Performance in Euro Area
Lack of coordination between the monetary and fiscal authorities will result in inferior overall economic performance. This paper studies the interactions between monetary and fiscal policies and its effect on the economic performance by using al cointegration tests in the case of Euro Area. This paper examines the causal relationship between output gap, public debt, budget deficit, interest rate and inflation rate, and the impact of monetary policy on public debt management, in Euro Area from 1999Q1 to 2013Q4. The evidence supports the idea that the monetary policy is more stabilizing in its influence on the economic activity than the budget policy. The particular stance of monetary policy affects the capacity of the government to finance the budget deficit by changing the cost of debt service and limiting or expanding the available sources of financing. The result does not let hear strong political coordination in Euro Area, a weak policy stance in one policy area burdens the other area and is unsustainable in the long term.
