Anatomy and lessons of the global financial crisis. Is US consumption financed by Chinese savings?

Savings and investments in the American money market by emerging countries, primarily China, financed the excessive consumption of the United States in the early 2000s, which indirectly led to a global financial crisis. The crisis started from the real estate mortgage market. Such balance disrupting processes began on the American financial market which contradicted all previously known equilibrium theories of every school of economics. Economics has yet to come up with models or empirical theories for this new disequilibrium. This is why the outbreak of the crisis could not be prevented or at least predicted. The question is, to what extent can existing market theories, calculation methods and the latest financial products be held responsible for the new situation. This paper studies the influence of the efficient market and modern portfolio theory, as well as Li’s copula function on the American investment market. Naturally, the issues of moral risks and greed, credit ratings and shareholder control, limited liability and market regulations are aspects, which cannot be ignored. In summary, the author outlines the potential alternative measures that could be applied to prevent a new crisis, defines the new directions of economic research and draws the conclusion for the Hungarian economic policy.

The Syrian refugee crisis reconsidered: The role of the EU-Turkey Agreement

The aim of the article is to analyse the roots of the current refugee crisis in Syria. The author argues that the most effective way to solve the crisis can only be to re-establish order and stability in Syria and Iraq. However, even with the most recent international attempts to bring the different Syrian actors to engage in proximity talks, re-establishing order in Syria will not be possible in the short term for the international community. Therefore more attention is needed to address the refugee crisis in the neighbouring countries. Due to its geographical location Turkey is the most important host and transit country for Syrian and other migrants. Turkey lacks the appropriate legal system and infrastructure to handle the situation. The author argues that the international community must make a greater effort to provide the refugees with basic necessities. The EU-Turkey agreement is an important step forward, but it lacks a truly comprehensive approach to solve the crisis. Turkey’s foreign policy toward Syria further complicates the challenge arising from the Syrian crisis.