The Main Causes and Ways of Decreasing the Economic Crisis in Romania

Abstract

The paper deals with the implications of fiscal policy based on the single taxing quota, and also the imbalances between import and export on the economic crisis in Romania. Based on the statistical data, it is emphasized, on the one side, the international experience of professor Arthur Laffer’ s theory application at the developed capitalist countries and the ways they acted for eliminating the registered negative effects. On the other side, it is underlined the effects of applying this theory on Romania’s economy and the effects of reducing big taxes and the high increase of foreign trade deficit. Finally, the conclusions are outlined and the main solutions which must be applied are shown, solutions necessary for the development of the national economy in the following period.

Keywords

• laffer curve
• single taxing quota
• fiscal revenues
• marginal taxes
• foreign trade deficit
• economy disindustrialisation