https://nordascend.com/index.php/ejedp/issue/feed 2025-11-11T11:20:51+05:00 Hannah Olsson admin@nordascend.com Open Journal Systems <p>The European Journal of Economic Dynamics and Policy is a peer-reviewed academic publication that explores the complex interactions between economic theory, quantitative modeling, and policy analysis. It focuses on advancing understanding of dynamic processes that shape economic growth, financial stability, labor markets, and institutional development within Europe and beyond. By combining rigorous empirical research with innovative theoretical approaches, the journal provides a platform for scholars, policymakers, and practitioners to discuss and evaluate strategies that influence economic performance, social welfare, and sustainable development in an increasingly interconnected global economy.</p> https://nordascend.com/index.php/ejedp/article/view/6 2025-11-11T11:18:17+05:00 Matti Koskinen

This article examines the unique transmission mechanisms through which monetary policy shocks influence business cycle fluctuations in emerging European economies. The analysis highlights how the distinct structural features of these nations - including their bank-based financial systems, high degree of economic openness, and evolving policy credibility - shape the potency of conventional channels. While the interest rate channel operates, its effectiveness is mediated by the health and structure of the banking sector. The exchange rate channel is particularly forceful, often acting as a primary vector for transmitting monetary impulses to the real economy due to deep trade integration. Furthermore, the credit channel, encompassing both bank lending and balance sheet effects, is identified as a critical amplifier of policy shocks, often magnifying their impact on investment and consumption. The article also explores the role of central bank credibility and the significant influence of external monetary conditions, particularly from the eurozone, which can induce pro-cyclical policy stances. The findings underscore that the business cycle dynamics in these economies cannot be fully understood without appreciating this complex interplay of domestic financial structures and external monetary dependencies.

2025-11-11T00:00:00+05:00 Copyright (c) 2025 https://nordascend.com/index.php/ejedp/article/view/7 2025-11-11T11:18:21+05:00 Mihaela Aciu

The efficacy of public investment is a critical determinant in the successful pursuit of sustainable economic development. This article contends that the mere scale of public capital expenditure is an inadequate metric; the efficiency with which these funds are translated into high-quality, productive assets is paramount for achieving long-term economic, environmental, and social objectives. The analysis explores the multifaceted relationship between investment efficiency and sustainability, arguing that inefficient investment - characterized by cost overruns, misallocation, and poor governance - not only represents a fiscal drain but actively undermines sustainable outcomes by crowding out productive spending and locking in carbon-intensive, socially inequitable pathways. Conversely, a robust public investment management cycle, fortified by strategic appraisal, transparent procurement, and diligent maintenance, directs capital toward resilient, low-carbon infrastructure and vital human capital projects. The article further examines how digitalization offers transformative potential for enhancing efficiency while embedding circular principles. Ultimately, it concludes that strengthening institutional capacity to ensure efficient public investment is not merely a technical fiscal goal but a foundational prerequisite for navigating the intertwined challenges of climate change, social equity, and enduring economic prosperity.

2025-11-11T00:00:00+05:00 Copyright (c) 2025 https://nordascend.com/index.php/ejedp/article/view/8 2025-11-11T11:18:24+05:00 Eliška Balog

This article examines the complex and often non-linear relationship between technological innovation and productivity dynamics within the European manufacturing sector. It addresses the persistent puzzle of why significant technological investment has not consistently yielded commensurate productivity growth, a phenomenon central to the continent's industrial competitiveness. The analysis argues that this dynamic is not merely a function of technological adoption but is fundamentally shaped by the critical role of complementary investments in human capital and organizational restructuring, which are prerequisites for realizing the full potential of Industry 4.0 technologies. A central theme explored is the bifurcation of the sector, characterized by a widening productivity gap between a small cohort of highly innovative frontier firms and a long tail of small and medium-sized enterprises struggling with adoption barriers. Furthermore, the article investigates the challenges that servitization and the increasing importance of intangible assets pose for conventional productivity measurement. Finally, it considers the dual role of the green transition as both a short-term drag on measured productivity and a potent long-term driver of innovation-led competitive advantage. The findings underscore that future productivity growth hinges on integrated policies that bridge the diffusion gap, modernize economic measurement, and strategically align technological and sustainability agendas.

2025-11-11T00:00:00+05:00 Copyright (c) 2025 https://nordascend.com/index.php/ejedp/article/view/9 2025-11-11T11:18:28+05:00 Candela Alamilla

The principle of labor mobility stands as a foundational pillar of European integration, theoretically serving as a key mechanism for regional economic convergence by allowing workers to move from areas of low opportunity to high demand. This article critically examines the complex and often contradictory role that labor mobility plays in practice, arguing that its impact on narrowing regional disparities within the European Union is highly contingent and frequently counterproductive. While neoclassical models posit migration as an automatic stabilizer, the European reality is characterized by significant barriers - linguistic, institutional, and housing-related - that limit its scale and efficiency. More critically, the selective nature of migration, which disproportionately draws the young and highly skilled from peripheral regions, creates a damaging brain drain. This human capital depletion erodes the long-term growth potential of sending areas, exacerbating existing inequalities. The analysis further contends that labor mobility can act as a substitute for capital mobility, reducing incentives for investment in less developed regions. Consequently, the article concludes that for labor mobility to fulfill its convergent potential, it must be embedded within a broader, cohesive policy framework that actively mitigates brain drain, fosters brain circulation, and strengthens the underlying economic attractiveness of Europe’s lagging regions.

2025-11-11T00:00:00+05:00 Copyright (c) 2025 https://nordascend.com/index.php/ejedp/article/view/10 2025-11-11T11:18:31+05:00 Eleni Aetos

The long-term effects of fiscal consolidation on economic growth represent a critical and deeply contested area in macroeconomic policy. This article contends that these effects are not monolithic but are fundamentally contingent upon the specific design and context of the austerity measures. While theoretical frameworks suggest potential long-term benefits through channels such as reduced crowding out of private investment and enhanced business confidence, these are often counterbalanced by the significant risks of hysteresis, whereby temporary output losses become permanent through the erosion of human capital and productive capacity. The analysis underscores that the composition of fiscal adjustment is a paramount determinant of its growth impact; expenditure-based consolidations, particularly those safeguarding public investment, are generally found to be less detrimental to long-term growth than those reliant on distortionary tax increases. Furthermore, the macroeconomic context at the outset - including the business cycle position and available monetary policy space - and the presence of complementary structural reforms are identified as crucial mediating factors. Ultimately, the article concludes that the trajectory of economic growth following fiscal consolidation is not preordained but is shaped by a complex interplay of policy choices, initial conditions, and institutional settings, moving the debate beyond a simplistic trade-off towards a more nuanced understanding of fiscal sustainability.

2025-11-11T00:00:00+05:00 Copyright (c) 2025