Approaches on the Vulnerability of Romania's Economy in Terms of Budget Deficit and Inflation in a Continuous Form

Abstract

The current conjecture of Romania's economy is marked by profound changes in fiscal and economic policy, with inconsistent effects of economic strategies at micro and macro levels, with repercussions in the evolution of efficiency indicators of the Consolidated General Budget. The paper is focused on identifying the current vulnerabilities of the national economy by building an econometric model, starting to the Consolidated General Budget’s revenues and expenditures evolution during 2014-2018. The research methods cover: literature review, database analysis, their consolidation and the conceptualization of an econometric fiscal model. The results of the analysis have diagnosed the stage of economic and financial pre-crisis in Romania.