IDEAS home Printed from https://ideas.repec.org/a/ora/journl/v1y2012i1p728-735.html
   My bibliography  Save this article

The Adequacy Of Romanian Fiscal Policy To Current Conditions

Author

Listed:
  • Matei Gheorghe

    (Universitatea din Craiova, Facultatea de Economie si Administrarea Afacerilor)

  • Croitoru Ionut - Catalin

    (Universitatea din Craiova, Facultatea de Economie si Administrarea Afacerilor)

Abstract

This paper aims to make a review of the Romanian fiscal policy appropriateness to the new conditions imposed by socio-economic catching separating us from the developed countries of the European Union. In the last three decades we are witnessing due to changes in national economies trade liberalization in the context of globalization. The analysis deals with issues of budget deficits, which are the main cause of sovereign debt crisis in Europe and solutions to rebalance the budget. The Keynesian and the multiplier mechanism solution is considered in economy, proposed by using public savings spending. The automatic stabilizers and their degree of efficiency in emerging economies solution is also considered. Finally, we show an analysis of tax rate systems used in three of the most developed EU countries compared with the tax rate used in Romania. Although facing large state budget deficits, Romania, in years of economic crisis, has made spending mitigation measures, which led to the contraction of consumption, the measures having a pro-cyclical nature. The analysis is considering a restructuring of the tax system in order to rearrange the tax burden as a means of mitigating the economic crisis.

Suggested Citation

  • Matei Gheorghe & Croitoru Ionut - Catalin, 2012. "The Adequacy Of Romanian Fiscal Policy To Current Conditions," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(1), pages 728-735, July.
  • Handle: RePEc:ora:journl:v:1:y:2012:i:1:p:728-735
    as

    Download full text from publisher

    File URL: http://anale.steconomiceuoradea.ro/volume/2012/n1/104.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    globalization; fiscal policy; budget deficits; tax rates;
    All these keywords.

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ora:journl:v:1:y:2012:i:1:p:728-735. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catalin ZMOLE (email available below). General contact details of provider: https://edirc.repec.org/data/feoraro.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.