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Economic theory and current global financial crisis


  • Jenica POPESCU

    (University of Craiova)

  • Dorina POANTA

    (Financial and Banking University, Bucharest)


Economic systems as inherently unstable like financial markets and we should not seek to achieve perfect stability. A strategy may have more support would involve allow-ing, and sometimes encouraging, a larger short-term cycles, using drop smaller, more fre-quent work to rid the system of excesses. In this way, it can be avoided crises forced the kind where we are now. To achieve this policy it would require recognition of the impor-tance of the volume of excessive credit growth and excessive decline in the volume of credit, and a review of our attitudes related to central bank policy and economic cycles. Normally we should not consider any economic contractions as failures of government policies, but to see them as a normal part of development of a healthy economy. We should strive to achieve some of this improved stability by encouraging greater self-discipline of the financial market participants. It would be useful in a clear message ex-plaining under-basis limitations on certain macroeconomic variables and the value of oth-ers; significance of monitoring credit creation should be increased.

Suggested Citation

  • Jenica POPESCU & Dorina POANTA, 2010. "Economic theory and current global financial crisis," Finante - provocarile viitorului (Finance - Challenges of the Future), University of Craiova, Faculty of Economics and Business Administration, vol. 1(11), pages 122-127, May.
  • Handle: RePEc:aio:fpvfcf:v:1:y:2010:i:11:p:122-127

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    References listed on IDEAS

    1. William R. White, 2006. "Is price stability enough?," BIS Working Papers 205, Bank for International Settlements.
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    More about this item


    financial crisis; debt; tax supervision;

    JEL classification:

    • G01 - Financial Economics - - General - - - Financial Crises
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies


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