Convergence to EMU through the Test of the Public Finance –Romania’s Budgetary Deficit and Public Debt
AbstractThe convergence criteria group together those macro variables whose dimensions mean to put in good use, to potentiate and to strengthen the major benefits of integration, as their configuration, either before and especially after the adhesion in EU, represents strict and compulsory requirements for each state. The very reason stands in the strategic target of adopting euro currency, as an advanced phase of the integration which thus brings together the negative integration – meaning the abolition of the various obstacles in common market functioning -, with the positive integration – that means that minimum action of the public authority mainly aimed to ensure the coordination and harmonization of the economic policies. Either budgetary deficit and public debt contain the quintessence of the convergence efforts in taking into account the public finance, since both indicators exhaustively mirror the government’s administration and interventionism, and reflect its practices and macroeconomic policies strategies. At the same time, they contain information and facilitate estimation and prognosis concerning not only that country’s estate and future, but the Union’s stability and future as well, since it represents an integrated system of many countries, a unitary whole of common goals and interests. The globalization is the outstanding economy’s characteristic either in present and future tense, which is a fact obviously confirmed by the propagated negative effects of the recent financial crises. The increasing importance of evaluating each country’s budgetary deficit and public debt, as much as each country is a part of a whole, is henceforth a reliable link for the member states of this great system. The globalization also favours the access and the extension of a multitude and various risks, which are able to penetrate through any split of any size. These public finance indicators are instruments enabled to operate as a primary and decisive court meant to signal and to preview the threatens against the system’s structure and stability, to prevent and remove these dangers, and also to heal long-term and bad effects.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 20480.
Date of creation: 04 Apr 2009
Date of revision:
budgetary deficit; public debt; the convergence criteria;
Find related papers by JEL classification:
- H62 - Public Economics - - National Budget, Deficit, and Debt - - - Deficit; Surplus
- G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
- H68 - Public Economics - - National Budget, Deficit, and Debt - - - Forecasts of Budgets, Deficits, and Debt
- H63 - Public Economics - - National Budget, Deficit, and Debt - - - Debt; Debt Management; Sovereign Debt
This paper has been announced in the following NEP Reports:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- António Afonso & Christophe Rault, 2008.
"3-Step Analysis of Public Finances Sustainability: the Case of the European Union,"
CESifo Working Paper Series
2393, CESifo Group Munich.
- António Afonso & Christophe Rault, 2008. "3-Step Analysis of Public Finances Sustainability: the Case of the European Union," Working Papers hal-00322086, HAL.
- António Afonso & Christophe Rault, 2008. "3-Step Analysis of Public Finances Sustainability: the Case of the European Union," Working Papers Department of Economics 2008/35, ISEG - School of Economics and Management, Department of Economics, University of Lisbon.
- Afonso, António & Rault, Christophe, 2008. "3-step analysis of public finances sustainability: the case of the European Union," Working Paper Series 0908, European Central Bank.
- Afonso, António & Sousa, Ricardo M., 2009.
"The macroeconomic effects of fiscal policy,"
Working Paper Series
0991, European Central Bank.
- António Afonso & Ricardo M. Sousa, 2008. "The Macroeconomic Effects of Fiscal Policy," Working Papers Department of Economics 2008/56, ISEG - School of Economics and Management, Department of Economics, University of Lisbon.
- Ricardo M. Sousa & António Afonso, 2008. "The Macroeconomic Effects of Fiscal Policy," NIPE Working Papers 22/2008, NIPE - Universidade do Minho.
- Anna Lipinska, 2007.
"The Maastricht Convergence Criteria and Optimal Monetary Policy for the EMU Accession Countries,"
CEP Discussion Papers
dp0808, Centre for Economic Performance, LSE.
- Lipińska, Anna, 2008. "The Maastricht Convergence Criteria and Optimal Monetary Policy for the EMU Accession Countries," Working Paper Series 0896, European Central Bank.
- Lipinska, Anna, 2006. "The Maastricht convergence criteria and optimal monetary policy for the EMU accession countries," MPRA Paper 1795, University Library of Munich, Germany.
- Iancu, Aurel, 2007. "Economic Convergence. Applications - Second Part -," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 4(4), pages 24-48, December.
- Fagan, Gabriel & Gaspar, Vítor, 2008.
"Macroeconomic adjustment to monetary union,"
Working Paper Series
0946, European Central Bank.
- Jean Chateau, 2002. "When are Structural Deficits Good Policies?," Working Papers 2002-14, CEPII research center.
- Georgescu, George, 2007. "Current Account Deficits and Implications on Country Risk of Romania," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 4(4), pages 88-96, December.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.