STATE SOCIAL RESPONSIBILITY IN MARKET DRIVEN ECONOMY

Abstract

Today's relationship between financial market and real economy is one of the main topic in scientific debate in the field of many different approaches. It is practically impossible separate economics science from others disciplines, like psychology, human behaviour, philosophy, ethic and etc. There are a lot of scientific research about corporate social responsibility, but just few of them trying to evaluate state (or government) social responsibility regarding social well being, social security, and sustainable development. Financial markets after losing the Gold standard in 1970 exploited to enormous amount, very active monetary policy in USA and hided monetary expansion in EU last few years made the situation even more complicated. Some economist see current situation in financial markets as normal, their argument is that expansive monetary policy (known as money printing) increasing liquidity in financial market and provide efficient recourse allocation in real economy. On the other hand, such intensive policy could lead to misallocation of recourses, high cyclica25l fluctuations and even possibility for hyperinflation.

DOI: http://dx.doi.org/10.5755/j01.em.17.1.2285