The article discusses different causes of financial crises and shows that the imputation of reinvested profits of the subsidiaries of foreign firms as a debit item on a host country's balance of payments account tends to overstate the current account deficit and to make the host country seem...

The paper is based on a broader study of three authors: Mlcoch, Machonin and Sojka. The underestimation of institutions both formal and informal ones, including business ethics was the key weakness of ex-Prime Minister Václav Klaus Czech way of transition during 1989-99. Then, the rhetoric of...