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Is There A Classical Solution For A Contemporary Problem?

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  • Nicolae MOROIANU
  • Daniel-Stefan BELINGHER

Abstract

This paper presents the connection between the main schools of economic thoughts, which explain the role of governmental intervention in the economy and the importance of wages, as counter-cyclical stabilizers in an economic system. This work aims to look into the economic European situation during the period which precedes the beginning of the current sanitary crisis, in light of empirical analysis. This analysis uses the corresponding data for two years, 2018 and 2019 and includes a series of activity business sectors considered to be relevant (for instance public administration and HoReCa/hospitality, in the light of the impact the sanitary crisis had upon them). The results of this sectoral analysis have as scientific objective the study of the relationship between the evolution of the staff expenditures in the public administration and the evolution of the Gross Domestic Product, emphasizing the level of correlation between these two. Into the assessed context, the research question remains open: if - in the event of a certain reduction of the staff expenditures from the state budget, in order to reach a balanced budget - this could be a real solution (even if only an emergency solution) since there is a high risk of recession; or even more – could be the trigger factor in driving the Romanian economy to a vicious cycle of austerity.

Suggested Citation

  • Nicolae MOROIANU & Daniel-Stefan BELINGHER, 2021. "Is There A Classical Solution For A Contemporary Problem?," Proceedings of the INTERNATIONAL MANAGEMENT CONFERENCE, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 15(1), pages 994-1006, November.
    • Handle: RePEc:rom:mancon:v:15:y:2021:i:1:p:994-1006
    DOI: 10.24818/IMC/2021/05.18
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    References listed on IDEAS

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    1. repec:agr:journl:v:2(602):y:2015:i:2(602):p:163-170 is not listed on IDEAS
    2. Daniel BELINGHER & Nicolae MOROIANU, 2015. "Empirical evidence on the Ricardian equivalence in Romania," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(2(603), S), pages 163-170, Summer.
    3. Amitava Krishna Dutt & Peter Skott, 2006. "Keynesian Theory and the AD-AS Framework: A Reconsideration," Contributions to Economic Analysis, in: Quantitative and Empirical Analysis of Nonlinear Dynamic Macromodels, pages 149-172, Emerald Group Publishing Limited.
    4. Lucas, Robert Jr, 1976. "Econometric policy evaluation: A critique," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 1(1), pages 19-46, January.
    5. David Colander, 1992. "New Keynesian Economics in Perspective," Eastern Economic Journal, Eastern Economic Association, vol. 18(4), pages 438-448, Fall.
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