Theoretical and Applied Economics
No. 2 / 2013 (579)
Romania's road to Euro zone. From structural balance to structural balance corrected for absorption
Bucharest University of Economic Studies
Abstract. The sovereign-debt crisis in the European Union has determined the necessity to reform the signal indicators for the analysis of the public finances' sustainability. In this context, many of the developing/emerging countries consider that the informational value provided by the structural budget balance indicator is insufficient, especially during the periods characterized by absorption. The present study suggests the transition from classical structural budget balance (CAB) in the structural balance corrected for absorption (CAAB) and supports the use of an improved indicator of the structural budget balance with a superior informational relevance for the macro-economic policies decision makers. Based on the economic literature we will demonstrate that the structural budget balance indicator should be improved, in order to also take into consideration the deviation of the current account balance from its sustainable level, particularly in the stage of the economic cycle characterized by high absorption.
Contents
Has accession to the EU affected business cycles?
The effect of the Romanian pension market concentration on the magnitude of pension revenues
Interest rate channel in Romania: assessing the effectiveness transmission of monetary policy impulses to inflation and economic growth
Romania's road to Euro zone. From structural balance to structural balance corrected for absorption
ARDL investment model of Tunisia
A review of the economic crisis: solutions and failures in the European Union
Macroprudential policy and financial stability
Public policies targeting labour market rigidities
National policy measures. Right approach to foreign direct investment flows
Influence of the prudential supervision over the capitalization of the Romanian insurance market
Social inequalities and poverty in current Romania
Conceptual aspects regarding balneotherapy tourism marketing in Romania
East-European stock exchanges in the context of financial crisis