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The negative effects of international crisis on the real economy and social issues

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  • Balu, Elena Mariana

    () (Universitatea Spiru Haret, Facultatea de Finante si Banci)

  • Mladen, Luise

    () (Universitatea Spiru Haret, Facultatea de Finante si Banci)

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    Abstract

    Financial crisis has an impact on the real economy, especially through the game central banks have tried to restrict loans to finance production, thus contributing to the fall production. The report request offer, economy tries to play through adjust prices on competitive markets. If banks try to adjust production to demand effective application that can be supported by salaries or other income, comes into contradiction with the offer. A difficult economic balance will lead to rising unemployment with increased inflation if we reverse the connection between unemployment and inflation fear employees against the phenomenon of unemployment is more pronounced not only in Romania but also in EU countries.

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    Bibliographic Info

    Paper provided by Osterreichish-Rumanischer Akademischer Verein in its series Papers with number 2009/5.

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    Length: 7 pages
    Date of creation: 01 Jun 2009
    Date of revision:
    Handle: RePEc:ris:sphedp:2009_005

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    Related research

    Keywords: economic growth; international crisis; the current account deficit; inflation; labor productivity; labor supply and demand;

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