Analele Universităţii Constantin Brâncuşi din Târgu Jiu : Seria Economie (Sep 2010)
ECONOMICAL CRISIS IN ROMANIA – A CONSEQUENCE OF THE WRONG MIX OF MACRO-ECONOMICAL POLICIES
Abstract
The economical crisis Romania starts to cross is mainly an internal crisis determined by the wrong mix of macro-economical policies established in the last years. Economic growth proves to be unhealthy; that is because we have had a growth based on consumption financed on debt during these years. Private consumption was excessive, but the population should not be blamed: all the macro-economical measures have been pro-cyclic, stimulating consumption; and the most damaging of the all, the unique rate, is still protected by its initiators who do not want to admit they were wrong. The unique rate has stimulated the consumption and we have nowadays the first crisis of overconsumption in Romania. The main cause is the excessive consumption on debt. The population cannot be blamed, but in the future it can be better informed and surely more precautious regarding the expectations for the own incomes. In exchange, the government may be criticized because it made a monumental strategic mistake: in a time of economical increase, it consumed all this increase and it indebted itself additionally. The budgetary deficit increased from 1,3% of PIB in 2008 to 2,6% last year and probably over 3% this year. Since the government has got to borrow hundreds of million euro with the date of payment of one week, the only logical conclusion is that there are no money for the current expenditures or for the ones already budgeted on the current year. It is absolutely inacceptable in a time of high economical increase for the budgetary deficit to increase, in consequence, the costs regarding its financing on a short term.
