CONTEMPORARY ECONOMY JOURNAL

13-20

Authors: Cristian MOROZAN, Elena ENACHE

The recent economic crisis has revealed the failure of some cognitive and operational models to relaunch the economic activity. The most persuasive example is the thesis that price stability is equivalent to financial stability, with the full use of resources. Nowadays, we hear more and more often of the idea that the budget deficit becomes a means of relaunching the economic activity, given the fact that it does not already have an inflationary character. It is possible to act upon the demand for public goods and services through the use of short-term funds, thus achieving a flexible budget policy. Within this framework, public spending can be resized in relation to the size of these funds. If no changes are made to tax regulation, fiscal revenues may constitute conjunctural adjustment tools. The idea that budget deficit would be a particularly important economic problem is partly true, because it must, nevertheless, exist. Through it, the redistribution of income between generations, the fiscal relaxation in the case of the variation of the income subject to taxation etc. are ensured.

27-34

Authors: Inga BULAT, Rodica PERCIUN

The purpose of an internal audit is to provide advice and provide objective assurance on the effectiveness of the managerial internal control system by providing recommendations that ensure and contribute to improving the work of the public entity. By assessing systems, processes, high-risk activities in the presence of errors, fraud, irregularities or significant non-conformities. The reality shows that, depending on the determinants, synthesized in pressures, opportunities and attitudes, there are significant differences in the risk of fraud. Differences can be identified at different levels of the internal control system, areas of activity and in different times, between financial years. The risk of fraud and corruption must be managed by the entity's management but also regularly evaluated by the internal auditor in conducting audit engagements. The establishment, assessment of the control environment and the management of major risks with a high degree of fraud implies a concise mechanism of effective activities in the prevention of fraud and corruption at entity and process level. This article will outline the basics of fraud in the public entity, the assessment of fraud risk by internal auditors using non-statistical models and indicators.

42-51

Authors: Tatiana PETROVA, Corina GRIBINCEA

Macroeconomic risks have a complex effect on the level of business activity, liquidity and financial stability of the economy of the Republic of Moldova. Risks and vulnerabilities can develop endogenously within the financial system, but can also occur in the real economy and be transferred to the financial system. The systems approach determines the reform of the macroeconomic risk management system as part of the strategic planning process for the development of the banking sector, the financial system and the country as a whole. The methodology used to calculate indicators of the macroeconomic risks were based on IMF methodology. Authors conclude that Moldova’s is lagging in terms of per capita income and weak social development emphasizes the need for faster and more comprehensive growth. However, the existence of an export-oriented economy development model, along with a weak financial system, makes the real sector vulnerable to external shocks and does not allow for a sustainable economic growth.

65-74

Authors: Violeta Elena DRĂGOI, Elena Larisa PREDA, Adelina Nicoleta NICOLESCU

Risk management within BRD is based on an integrated concept that takes into account statutory and regulatory standards as defined and provided by the NBR and the European Supervisory Authorities, Société Générale risk management standards and generally accepted banking practices. The purpose of the research is to analyse the global exposure of the bank to credit risk, quantified by weighted and relative indicators, deepened by studying the risk at the segments of the clientele, by sectors of activity, by seniority groups of overdue loans, ofnot impaired loans and without arrears, as well as the coverage of credits with guarantees, and it is relevant to corroborate it with the indicators that express the financial performance of the credit institution.

80-85

Authors: Gheorghița DUMITRACHE (TORCICĂ)

Risk management within educational organization is an important activity which must integrates recognition of risk, risk assessment, developing strategies to manage it, and mitigation of risk using managerial tools. Objective of risk management is to reduce different risks related to a pre-selected domain to an acceptable. It may refer to numerous types of threats caused by environment, technology, humans, organizations and politics. The process of risk identification within educational organizations is the most important în the process of risk management. If a risk is not identified correctly, then the risk manager will not be able to cuantify it and find the proper method of counteracting the significant results of risk exposures. The paper describes the different risk identification tools and techniques in the risk management process, which methods are used in the different steps in order to risk identification, and provides some examples for risk in educational area.

92-102

Authors: Stela CIOBU, Victoria IORDACHI

One of the major international problems continues to be considered the sovereign external debt. A lot of countries use external loans when domestic savings are insufficient to finance consumption and national investment. Each state, as a debtor, is required to manage correctly and maintain the sustainability of the sovereign external debt. Excessive and inappropriate external indebtedness will generate sovereign risk, which negatively affects future economic policy. In addition, fiscal, monetary, currency and trade policies directly influence the volume of contracted loans. In order to successfully avoid the difficulties created by external debt, policies must be chosen so that key economic variables, such as interest rate, exchange rate of the national currency, international reserves to express real costs for decision-making authorities, and governments to accompany their public investment programs with efficient measures to capture budget resources and mobilize domestic and attracted savings. The scope of this work paper is to determine the sustainability of the sovereign external debt of the Republic of Moldova, the efficiency of its management and the impact on the national and world economy.

112-119

Authors: Alexandru GRIBINCEA, Alexandru GRIBINCEA

The obvious achievements in the development of the world economy were accompanied by the increased concern of politicians, businessmen, scientists and elites, fear of risks of further prospects for the development of destructive processes in national economies, industries and entities. The pursuit of profit forces resource users to save on costs in the performance of two fundamentally important economic functions related to nature: the extraction of resources, which leads to its excessive destruction, and the disposal of waste of the production cycle, which leads to pollution. At the same time, the effect of these functions leads to a further decrease in the ecological capacity of the planet. Globalization has shown that the idea of a high degree of environmental development of the West is a myth that allows a certain country to solve environmental problems safely only on its territory. "Prosperous countries" solve the problems of their "dirty economy" at the expense of the periphery of developing countries. Polluting enterprises of fuel and energy, agriculture, forestry, fisheries, industrial, energy and other sectors of the economy were brought to the periphery of the world market economy. Therefore, the scale of global problems, from which it is impossible to hide behind national borders, is increasing.

129-134

Authors: Cătălin DRĂGOI

On the background of the development and maturity of virtual currency markets a new type of business or company emerged. The classic method by which a company becomes public by winning funds from individual investors is by selling shares in an initial public offering. What is called "initial coin offering" is in the area of cryptocurrency equivalent to an initial public offering in the world of the main investments, the initial offer of the currency acting as a collector of funds. Most often, initial coin offerings are used by new companies to circumvent the rigorous and regulated process of capital increase demanded by investment funds or banks. The paper aims to analyse how virtual currency work, what their characteristics are, and whether they can be an economic development factor.

141-147

Authors: Mădălina ALBU

The main role of research, development and innovation, RDI, is to improve people's living conditions through the sustainable development of organizations. To find solutions to environmental challenges, organizations need to implement new projects that create synergy between science and society by involving all stakeholders in the sustainable development of society in general. Research, development and innovation activities should be seen as an investment in the harmonious development of future agribusinesses. Capitalizing on all the strengths and opportunities offered by the current environment and the current level of society development must stimulate innovative solutions to develop an economy in harmony with nature. Competition between states is also manifested through fiscal or other facilities offered to local or foreign investors. Among other factors, the attractiveness of a country for investors is also given by the incentives they can get for RDI activities. To this end, Romania has to align with EU standards in order to overcome the limits and to contribute directly to the well-being of European society and citizens by allocating resources to finance significant RDI activities.

158-171

Authors: Sakiru Oladele AKINBODE, Oladapo FAPETU, Jayeola OLABISI, Olutunji Timothy OJO

The study assessed empirically the impact of exchange rate on economic growth in Nigeria from 1981 to 2016. Data on GDP, Exchange rate, foreign direct investment (FDI), inflation rate, imports, exports, trade openness, final consumption expenditure (FCE), interest rate, and government expenditure were obtained from the different issues of the CBN Statistical Bulletin. Data series were assessed for stationarity with the aid of the ADF test. Bound test was conducted and the model was estimated within the ARDL framework supported by the relevant post estimation diagnostic tests. The bound test showed that there was long run relationship among the study variables. Model estimation revealed that import, lag of trade openness, FDI, lag of exchange rate, interest rate and inflation significantly affected the growth of the economy in the short run. In the long run, economic growth was affected by trade openness, FDI, exchange rate, government expenditure and interest rate. It was concluded that the present year exchange rate did not affect economic growth in the short run but its one year lag did, while exchange rate had negative effect on the growth of the Nigerian economy in the long run. To achieve growth in the economy, effective exchange rate management system alongside expansionary fiscal policy and encouragement of importation of capital goods are recommended.

181-186

Authors: Constanţa POPESCU, Diana-Nicoleta GEORGESCU, Georgiana –Tatiana BONDAC

The ever-changing environment determines man to adapt heavier to the demands it generates. In these conditions, the stress has become a problem with which we are confronted permanently, in both the extra-professional and the professional environment. Due to stress consequences generated by work situations, in recent years, most of the research were mostly oriented towards this. Initially, occupational stress has been studied at the managers level ("staff stress with executive power ") subsequently, has been expanded depending to types of leadership existing. The purpose of this paper is to present stress factors associated with types of leadership and to identify effective leaders behavior for the purpose of diminishing level of stress in the organization.