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An Exploratory Analysis Of Some Potential Fiscal-Budgetary Vulnerabilities In Romania

Author

Listed:
  • Ionel LEONIDA

    (“Victor Slavescu” Centre for Financial and Monetary Research, Romania)

  • Cosmin – Octavian CEPOI

    (“Victor Slavescu” Centre for Financial and Monetary Research, Romania)

Abstract

The severe deterioration of public finances during the COVID-19 pandemic and its consequences brought aspects of a fiscal-budgetary nature into the debates, fiscal policy, through its instruments, being considered the main anchor through which the government can stimulate or inhibit the economy in a moment of crisis, but also afterwards. The proposed work is part of this direction of continuing the debates and analyses, aiming exploratory at the possibility of identifying some vulnerabilities or emphasizing some existing ones from the previous period, based on an analysis framework that aims at three important aspects: the evolution of the budget deficit; the evolution of public debt and their positioning in relation to economic dynamics. The result can be a source of information, of possible development and refinement, to the extent that it will signal the existence of significant fiscal-budgetary vulnerabilities in the short and medium term at the level of Romania.

Suggested Citation

  • Ionel LEONIDA & Cosmin – Octavian CEPOI, 2023. "An Exploratory Analysis Of Some Potential Fiscal-Budgetary Vulnerabilities In Romania," Contemporary Economy Journal, Constantin Brancoveanu University, vol. 8(4), pages 76-82.
    • Handle: RePEc:brc:brccej:v:8:y:2023:i:4:p:76-82
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    References listed on IDEAS

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    1. Andrea Schaechter & C. Emre Alper & Elif Arbatli & Carlos Caceres & Giovanni Callegari & Marc Gerard & Jiri Jonas & Tidiane Kinda & Anna Shabunina & Anke Weber, 2014. "A toolkit to assess fiscal vulnerabilities and risks in advanced economies," Applied Economics, Taylor & Francis Journals, vol. 46(6), pages 650-660, February.
    2. Bartolini, Leonardo & Cottarelli, Carlo, 1994. "Government Ponzi games and the sustainability of public deficits under uncertainty," Ricerche Economiche, Elsevier, vol. 48(1), pages 1-22, March.
    3. Mr. James McHugh & Iva Petrova & Mr. Emanuele Baldacci, 2011. "Measuring Fiscal Vulnerability and Fiscal Stress: A Proposed Set of Indicators," IMF Working Papers 2011/094, International Monetary Fund.
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    Keywords

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    JEL classification:

    • E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General

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