The aim of macroprudential policy is to ensure financial stability by avoiding the outbreak of banking crises, which have a dangerous effect on the economy. Is macroprudential policy effective in the face of banking crises and systemic risks? The macroprudential policy has received significant interest from policy-makers and researchers. A few developing countries were using macroprudential policy tools well before the 2008 financial crisis, but significant progress has been made thereafter in both emerging and industrialized economies to put in place specific institutional settings for macroprudential policy. The fundamental objective of macroprudential policy is to maintain the stability of the financial system by making it more resistant and preventing the risk build-up. The objective of this paper is to analyze the important role of macroprudential policy in ensuring overall financial stability. Since the financial crisis of 2008, macroprudential policy has been increasingly used across economies. These measures aim at smoothing financial cycles and thereby mitigating the impact on the real economy, thereby allowing monetary policy to focus on price stability and promote growth and full employment. Macroprudential policy instruments fall into two categories, depending on their purpose, namely, to prevent procyclicality or to enhance the resilience and soundness of the financial system against shocks. The first category of instruments is used to stop bubbles from forming and smooth cycles, i.e. to force the debt-equity of economic operators on an income basis to prevent unsustainable credit bubbles, or to require dynamic loss provisioning rules. The second category of macro-prudential policy is to improve the resilience to shocks, such as capital surcharges for systemic institutions or the requirement to hold liquid assets to cope with market panics, and to make the financial system less complex. Keywords: macroprudential policy, financial stability, tools and measures, systemic risks.

Foreign direct investment (FDI) is an essential factor in the development of a country. This study aims to examine what factors influence foreign direct investment. By using the vector error correction model, the research shows that there is a long-term causality relationship between exchange rates and inflation with FDI. However, in the short term, there are no variables that affect FDI. Besides, the Granger causality test shows causality in the direction of GDP and FDI, while other variables do not have causality. This research has implications for policymakers to pay attention to macroeconomic variables in increasing the flow of foreign direct investment. AbstrakInvestasi asing langsung (FDI) merupakan salah satu faktor penting dalam pembangunan di suatu negara. Penelitian ini bertujuan untuk menguji faktor apa saja yang memengaruhi investasi asing langsung. Dengan menggunakan model vektor koreksi kesalahan ditemukan bahwa terdapat hubungan kausalitas jangka panjang antara nilai tukar dan inflasi dengan FDI. Akan tetapi, dalam jangka pendek tidak ada satupun variabel yang memengaruhi FDI. Selain itu, uji kausalitas Granger menunjukkkan kausalitas yang searah antara PDB dengan FDI, sementara variabel lain tidak memiliki hubungan kausalitas. Penelitian ini berimplikasi kepada para pengambil kebijakan untuk memperhatikan variabel-variabel makroekonomi dalam meningkatkan arus investasi asing langsung.Kata Kunci: investasi asing langsung, variabel makroekonomi, model vektor koreksi kesalahan JEL Code: F21, H60

The current political uncertainty, economic problems, permanent religious conflicts, and crisis continue to frustrate investors and hold back potential stabilization. This paper investigates the impact of Political risk on Foreign Direct Investment inflows in selected MENA countries (Algeria Turkey and Arabia-Saudi) during the period (1984-2017) using the Panel Data model. The Hausman Test confirms that the random effects model is a more appropriate technique for this model to explain the effect of Political Risk on FDI inflows. The results of our study show that: Democratic Accountability and Investment Profile, Law order have a significant positive impact on FDI inflow. Besides that, another interesting finding of the research is the significant negative relationship between the Military in Politics.

A firm is a market contradiction: as a firm grows, the market shrinks. The basis of this statement are theoretical approaches, which are called theories of the company. This work is aimed at determining the boundaries of the company in a dynamic perspective with the aim of finding effective solutions to the process of its growth. The study notes that opportunism as a behavioral factor, as Williamson noted, incurs significant operating costs that encourage the firm to change its boundaries. Therefore, the work focuses on this factor to create a systematic image and a general theoretical basis for changes that affect the size of the company. The main objective of the study is to determine the relationship between the opportunistic behavior of economic agents and the internal and external growth of the company. The author notes that opportunism is an unlawful behavior, often taking place in a double relationship between two legally independent parties and is a consequence of external and internal uncertainty and information asymmetry. The study postulates that the concept of trust, information transparency, or information balance between parties remains a dream for both theorists and practitioners. It has been ascertained that information transparency and a complete understanding between economic entities are difficult to implement in the context of the priority role of personal good over public or, at least, mutually beneficial. The results of the study confirmed the influences of opportunistic actions of economic entities, as predicted in the framework of transaction costs theory, the organizational changes of a company, its scale. The study made it possible to justify the presence of a positive effect of illegal actions on the internal expansion of the company and the negative, expanding the external structure. Keywords: Sourcing, External Relationships, Internal Relationships, Opportunism.

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