Index of the cycle of money - The case of Slovakia
Constantinos Challoumis
Abstract
This paper studies the cycle of money works in an actual case scenario like this of the economic system of Slovakia. Prior works have examined the case of Latvia, Serbia, Greece, Thailand, and Bulgaria, following the concept of the theory of cycle of money. The index of the cycle of money suggests how an economic system ought to counteract a monetary crisis and examines how well-structured is Slovakia’s economy. The estimations of the index of the cycle of money of Slovakia are compared with the global average index of the cycle of money. The estimations reveal that Slovakia is over to the average global value. Then, Slovakia has a well-structured economy and can overpass an economic crisis. The applied methodology uses the analysis of the theory, mathematical, statistical, and econometrical results. The current work presents the strength of Slovakia’s economy to a potential crisis. This means that a tax policy should consider that companies with big capital should have tax privileges to invest in manufacturing and high technology services and goods; leaving the rest of the companies to act to better free-market conditions. Otherwise, companies that substitute activities of smaller ones should be taxed higher. The applied period is that of economic crisis, 2012 - 2017, as this period is considered critical because of the economic crisis in the EU.
Key words: the cycle of money, Slovakia, general index of the cycle of money, reuse of money, distribution of money
JEL Classification: C, F, H
DOI: https://doi.org/10.53465/STCB.1339-3081.2021.49.176-188
Received: 7.5.2021 Accepted: 23.8.2021
How to cite this (APA 7th edition):
Challoumis, C. (2021). Index of the cycle of money - The case of Slovakia. Studia commercialia Bratislavensia: vedecký časopis Obchodnej fakulty Ekonomickej univerzity v Bratislave, 14(3), 176-188.
ISSN (online): 1339-3081
Publisher: Fakulty of Commerce, University of Economics in Bratislava
License:
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.