The Correlation Analysis Between the Public Debt, the Budget Deficit and GDP in Romania

Abstract

The way in which the state manages the public debt represented always and will continue to represent a subject of real importance, and the discussions regarding the level of budget deficit, the degree of indebtedness and their implications on social prosperity are of important actuality as much as national level as also at European Union level. In this paper it is presented the dependence between the Romanian public debt and its budget deficit, the dependence between the Romanian public debt and its GDP, in tandem with the ARX model time variation, rending evident the residuum.

Keywords

• public debt
• budget deficit
• GDP