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Romania Shows More and More Red Flags, With Values Significantly Beyond the Balanced Trends

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  • Cristian - Marian Barbu

Abstract

This article analyses the fact that, although the budgetary and fiscal measures are the main leverage by which the government influences the Romanian economy, and their adopting and implementation should be based upon an analysis of their impact on medium term, theoretically and practically, and time is needed to understand and accommodate them in the business plans, the transparency and predictability requirements, which are vital for any stable economy, are still hard to fulfil. In Romania, very often, out of various reasons, mainly political, the economic policy decisions rather deepen the cyclic tensions of economy instead of attenuating them. The consecutive increases of the minimal wages have been done at a fast pace, which has not been supported by the appropriate evolution of productivity.

Suggested Citation

  • Cristian - Marian Barbu, 2018. "Romania Shows More and More Red Flags, With Values Significantly Beyond the Balanced Trends," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 4(1), pages 40-49, March.
    • Handle: RePEc:khe:scajes:v:4:y:2018:i:1:p:40-49
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    References listed on IDEAS

    as
    1. Cristian Marian BARBU, 2017. "About Opportunity of Fiscal Relaxation and Wage Increase in Romania or What is Like to be Caught on the Wrong Foot," Research in Applied Economics, Macrothink Institute, vol. 9(2), pages 32-48, June.
    2. Mencinger, Jernej & Aristovnik, Aleksander & Verbič, Miroslav, 2017. "Asymmetric effects of fiscal policy in EU and OECD countries," Economic Modelling, Elsevier, vol. 61(C), pages 448-461.
    3. Ant Afonso & Ricardo M. Sousa, 2012. "The macroeconomic effects of fiscal policy," Applied Economics, Taylor & Francis Journals, vol. 44(34), pages 4439-4454, December.
    4. repec:taf:applec:44:y:2012:i:34:p:4439-4454 is not listed on IDEAS
    5. Ms. Anja Baum & Mr. Marcos Poplawski Ribeiro & Miss Anke Weber, 2012. "Fiscal Multipliers and the State of the Economy," IMF Working Papers 2012/286, International Monetary Fund.
    6. Cristian-Marian Barbu, 2016. "Life Standards in Romania, Labour Costs and Productivity of Material Resources, In the European Context," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 6(8), pages 136-145, August.
    7. Aura Gabriela SOCOL & Roxana Mirela FERARU, 2017. "The role of fiscal policy in the financial crisis. Challenges and solutions," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(2(611), S), pages 5-20, Summer.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Economic policy; budgetary execution; current account; consumption; increased labour cost; resource productivity;
    All these keywords.

    JEL classification:

    • E03 - Macroeconomics and Monetary Economics - - General - - - Behavioral Macroeconomics
    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General
    • H30 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - General
    • H60 - Public Economics - - National Budget, Deficit, and Debt - - - General
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development

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