Finance is part of our daily life, and it can be seen as art or science to manage the money, using basic principles combined with modern technologies. Finance is usually studied at the university or specialized highschools. However, the present book is dedicated to both students and practitioners, to those who want to understand the public and private financial principles and their importance in any kind of economic activity, and at any level, from individual to global.
The present book addresses aspects of public and private finance, as well as interference with the latest financial technologies and instruments, digital finance and artificial intelligence. It is structured in twelve chapters and started from public finance to corporate finance.
Chapter 1 – Public Finance, presents the principles of public finances and the role of the public sector in the economy. The chapter explains the public finance mechanism in the process of formation of public revenues and their allocation to the economy; it comes to clarify the importance of financial and fiscal policy to ensure a balanced and lasting economic growth; and explains the use of modern and intelligent public-private financial communication methods.
Chapter 2 – Public Budget, presents the principles of the public budget, methods of budgeting and public budgetary process. The chapter underlines the main key indicators to ensure the efficiency and effectiveness of using public money; and, explain the benefits of budget balancing and the need for fiscal consolidation to ensure sustainable economic growth.
Chapter 3 – Taxation – a Smart financial tool deals with tax issues, principles, and characteristics. The chapter focuses on the intelligent use of tax to increase employment rates, and on the international impact, which a tax may have on capital and the labor market. A particular point is the tax pressure and tax evasion, its effects in the economy, as well as new technologies for diminishing the evasion phenomenon.
Chapter 4 – Finance Globalization, discusses finance from local to international, giving a special place to globalization and its effect. The chapter explains the implications of the financial system, international economic agreements, and regional economic organizations; and underlines the implications of digital era within financial systems.
Chapter 5 – Fiscal Competition, underlines the characteristics of fiscal competition, presents the negative and positive effects of fiscal competition on the country economic level; giving an accurate explanation the fiscal haven concept and its habit to avoid high taxation levels.
Chapter 6 – Finance of Regional Development, presents the importance of economic development form local to national, and from national to regional. There is a special place allocated to methods of financing the regional development in Europe and the Middle East.
Chapter 7 – Intelligent Regional development, Entrepreneurship, and Smart Cities discuss economic development under the global loop. The chapter presents the turmoil effect on regional developments and how we can use new financial technologies and services to reduce economic disparities, at local and international level. Types of financial funds and projects are presented on categories of investments: from start-ups to smart cities. The chapter underlines innovative financial instruments are presented as an example of modern practices.
Chapter 8 – International Financial Markets started from financial markets’ features and highlights the impact of finance internationalization. The chapter gives special attention to the financial crisis and the role of financial markets, to learn from these experiences. New technologies and the expertize of the digitalization of financial markets is presented through artificial intelligence, Blockchain, and cryptocurrencies. In the end, the chapter emphasizes the importance of financial markets’ supervision.
Chapter 9 – Global Financial Supervision underlines the need and rules of financial supervision, given special attention on non-banking markets. The chapter presents also the impact of the cyber attack on financial institutions.
Chapter 10 – Investment Diversification underlines the principle and the importance of diversification. Risks in investments and ways to manage are treated under smart methods for successful investments. The chapter presents in detail steps, which should be followed when you start an investment project.
Having in the view the importance of foreign investments, the last two chapters 11 and 12 present Foreign Direct Investment and Foreign Indirect Investments. Chapter 11 started from the appearance of foreign investments and highlights the factors, which have a signification impact on foreign investments. The chapter presents the benefits of foreign investments and the relation between personal wealth, business and economic growth. Chapter 12 underlines the difference between direct and indirect investments and the benefits of investments.
Looking at the content, the present book can be considered as a working instrument for both economics as well for students who wish to discover more closely the mechanism of finance.