A hiány újratermelése (The reproduction of shortage)

Sporadic lack of consumer articles, the housing shortage, disturbances of material supply, and shortages of investment goods and of labour may be traced back to a common main cause. Shortage is constantly reproduced by specific features of the economic mechanism. The first part of the article consists of micro-analysis, mainly of the productive enterprise. Efforts to increase production may run up against ceilings of three kinds: constraints on physical resources, constraints on demand, and the budget constraint on enterprises. It is an important feature of a system which of these constraints takes effect. Resource-constrained systems can be distinguished from demand-constrained ones here. In the former, production is limited by production bottlenecks, in the latter by buyer demand. The socialist economy in its "classical" form belongs to the former type. It is related to whether the budget constraint on the enterprise is "hard" or "soft". If hard, enterprise spending is limited by its financial scope, if soft (its losses offset almost automatically) its demand becomes almost insatiable. The second part performs a macro-analysis, showing the mechanism of "suction" with the aid of a hydraulic analogy. The enterprise sector "pumps away" reserves and surpluses of the system, mainly due to the "investment hunger" that appears in the wake of expansionist efforts. Finally the article discusses briefly the interrelations between shortage and inflation.

Teaching economics in Hungary after the crisis

In the wake of the economic crisis, a question arises increasingly often: what is the role of economic culture in overcoming the crisis? Since the mid-2000s, leaders of developed countries have kept pointing out that fostering political and economic education is a driver of growth and development. Curricula are being overhauled; new modules are appearing in the study programmes of secondary schools, colleges, and university-level undergraduate courses; significant curriculum developments have been launched at the world’s leading universities in the last few years. Hungarian higher education cannot exclude itself from this process.

Heterodox gazdaságpolitikák korszaka? (An Age of Heterodox Economic Policies?)

A világ fejlett pénzügyi piacainak válságát követően önvizsgálatra kényszerült a közgazdaságtudomány, amelyet nemcsak az alternatív és heterodox irányzatok képviselői, a média és a nagyközönség, hanem a gazdasági döntéshozók részéről is erős kritikák értek. Egyidejűleg gyors változásokon ment át a gazdaságpolitikai gyakorlat, különösen a válság által erősen érintett országokban, megszaporodtak a korábbi mérvadó kormányzati gyakorlat (best practice) ajánlásaitól távol álló, nem szokványos megoldások, heterodox politikák. Az esszé szerzője meghatározó személyiségek véleményének, vezető intézmények álláspontjának és kormányzati gazdaságpolitikáknak az áttekintése alapján egyfelől azt a kérdést vizsgálja, hogy körvonalazódik-e új gazdaságelméleti irányzat, amely doktrinális alapul szolgálhatna a gazdaságpolitikai döntéshozatalhoz, másodsorban pedig: átmeneti jelenség-e az egymástól alapvetően különböző felfogású, logikájú gazdaságpolitikák egyidejű megléte, avagy várható-e egy új konszenzus kialakulása. ______ In the wake of the recent financial turmoil emanating from top financial centers, the economic profession has been forced to conduct introspection due to harsh criticism from alternative and heterodox economists, the media, and the general public as well as from decision makers. Meanwhile, the economic policy making practice has profoundly changed, particularly in countries heavily affected in the crisis; decision makers increasingly apply non customary (heterodox) measures in defiance of former best practice of economic policy making. The author of this essay, having investigated the related views of leading economists and influential international institutions and having reviewed economic policy making practice, raises two questions. One: is there a new economic theory evolving that will provide doctrinal underpinning to post crisis economic policy making? Second: is the simultaneity of widely differing economic policy practices and policy orientations a transitional phenomenon, or are there signs of a new policy consensus emerging? It may be too early to give argued answers to the questions, but the present – rather technical – economic theory mainstream seems to maintain its central position, yet is becomes more open to research topics and methods acknowledging the complexity of economic processes and social institutions, and to impulses emanating from economic practice. As for economic policy making is concerned, continuous decline of the economic importance of leading Western nations prolongs the period of heterogeneity of non conventional, heterodox policies both in advanced and in emerging countries until new policy norms, a “new normal” emerges.

Interpreting innovation – in another way

Innovation helps to uncover the future social and economic possibilities. Subsequently familiarising with innovation processes, mapping those involved in innovation and researching the relations and influencing factors is becoming more and more valuable. The authors carried out innovation research in three middle-sized and small towns in Hungary on the basis of a request by a municipality among enterprises involved in the intelligent specialisation strategic program. In the course of the research the role of regional universities, the relationship between organisations involved in social innovation and the researched enterprises, as well as traditional innovation areas were dealt with. The innovation performance of enterprises in all three regions are – despite smaller differences – around the Hungarian average. The presence of a university in the region can be felt, however, it does not remarkably influence the innovation potential of enterprises. It seemed that outside the traditional links to chambers of commerce and industry there were no other civic protagonists in the processes of creating knowledge, and even the relations are rather loose, or mediocre. In the wake of these results, the authors formulated specific suggestions for improving the economic and social possibilities of the involved regions by establishing innovative environments.