Home Part 3 ROMANIAN ECONOMY IN THE EUROPEAN CRISIS

 

ROMANIAN ECONOMY IN THE EUROPEAN CRISIS

 

 

Aurel Mihuţ

"Drăgan" European University of Lugoj, Faculty of Economic Sciences,

Ion Huniade Street, No. 2, Lugoj, Romania, This e-mail address is being protected from spambots. You need JavaScript enabled to view it

 

 

Abstract

European economy still faces today, one of the worst economic and financial crisis since the Second World War. Economic and financial crisis has spread worldwide with maximum speed, the economies of all Member States of the European Union encountering serious difficulties, both in the banking system and real economy. Romanian economic crisis started in 2008 and the uncertain deadline, is a matter of concern for many people. It is true that today we are witnessing the worst crisis in 80 years. We have an official explanation of the crisis, provided by public institutions, that the problem stems from inappropriate behavior of economic agents: selfishness, greed, speculation and market unable to function smoothly, ensuring proper allocation of resources: information asymmetry, liquidity trap , deflation, etc.

On the other hand, most researchers, members of the academic, and private sector analysts argue that state intervention just planted seeds of financial turmoil that cross the present. The recipe prescribed by the authorities can result in mitigation of economic difficulties but, in contrary to their aggravation. The economic crisis is the result of several factors, which mainly include monetary policy errors, distorted economic incentives and pathology of the banking and financial regulatory policy.

This paper is to highlight what triggered today's crisis in the Romanian economy, hoping to find a remedy to the problems of the economic, social and political that we face.

Keywords: economic crisis – financial; economic recession; economic recovery; the GDP, unemployed, International Monetary Fund; Value Added Tax.

JEL Classification: G01, G11.

REL Classification: 11B.


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