Financial Experts Role to Solve General Budget Deficit Problem in Jordan

Jordan is a developing country which has frequently general budget deficit. Government intervene increases environment complexity. Financial experts have weakness to solve deficit problem in spite of understanding managing risk of financial and investing choices also can develop its tools. Researches found the reasons of financial experts＇ weakness, which are the ignorance of financial expert evaluation and role solving of negative social problems which came after losing trust in leaders. Recommendations concentrate on giving financial expert power and solving law ignorance problem by adjusting law to fight trickery. Law does not give the harmed the right to cancel contract when there is unfair price. It must collect unfair price with deceiving to get right. Rule must be confession of profit after studying assets and liabilities value in market prices. Deals in financial market should take care of financial analyses, human resources accounting, and value added of companies. Financial experts can achieve equilibrium between local producing and Jordanian international producing depending on suitable cost of producing to import and courage producing locally.

Monetary and fiscal factors in nominal interest rate variations in Sri Lanka under a deregulated regime

Background:This paper examines the role of monetary and fiscal factors in interest rate variations in Sri Lanka under its deregulated regime of interest rates.In addition the paper also examines the role of monetary factors in the variation of interest rates,using a quarterly dataset for the post-global recession period,when the exchange rate is determined by market forces.Results:Empirical analysis uses a dataset of nominal interest rates,money growth,income growth,changes in nominal exchange rate,and budget deficit.From the methodological point of view the paper involves vector autoregression model and Wald tests of Granger causality,followed by impulse response analysis while stationarity and the order of integration of the selected variables are confirmed involving the augmented Dickey-Fuller and the Phillips-Perron unit-root tests.Results:The paper confirms that both monetary and fiscal factors have significant effects on the variations of interest rates.Money growth triggers an increase in interest rates,which supports the Fisher equation view,while income growth has a negative impact.Budget deficit causes a rise in interest rates,but the role of the exchange rate is found to be almost insignificant,probably due to including exchange rate series that cover both the pegged and market-based regimes of exchange rates.The second part of the analysis,using a quarterly dataset for the post-global recession period,further establishes the positive impact of M2 money growth and income growth on interest rates.In this case,exchange rate depreciation causes an increase in interest rates.Conclusions:The significant role of monetary and fiscal factors in interest rate variations implies it would be possible to manage interest rates through a judiciary management of monetary and fiscal policies.

Labour Productivity and the Chaotic Economic Growth Model： G7

Chaos theory is used to prove that erratic and chaotic fluctuations can indeed arise in completely deterministic models. Chaos theory reveals structure in aperiodic, dynamic systems. The number of nonlinear business cycle models use chaos theory to explain complex motion of the economy. Almost three years after the crisis, the G7 countries continue to be challenged with economic volatility. The global economy has slowed. Growth in the United States has weakened. In Europe, economic instability is generated by the financial and economic imbalances. Europe is gripped with financial strains from the sovereign debt crisis in the euro area periphery. How these G7 economies confront their fiscal challenges will profoundly affect their economic stability. The basic aim of this paper is to provide a relatively simple chaotic economic growth model that is capable of generating stable equilibria, cycles, or chaos. This paper looks in more detail at the GDP growth stability issues in each of the G7 countries in the period 1990-2012 （Retrieved from http：//www, imf.org）. A key hypothesis of this work is based on the idea that the coefficient π =[p（s_p-i-n/pb-p_mb_m）] plays a crucial role in explaining local stability of the gross domestic product growth, where, p---the coefficient of labour productivity; p.,--the coefficient of the marginal labour productivity, sp-private saving rate;i--investment rate; b-percent of the gross domestic product which belongs to budget deficit; bm-marginal budget deficit coefficient; n-net capital outflow rate.