STUDY ON THE IMPACT OF SOVEREIGN DEBT ON THE DEGREE OF SELF-REGULATION OF ROMANIAN ECONOMY
STUDY ON THE IMPACT OF SOVEREIGN DEBT ON THE DEGREE OF SELF-REGULATION OF ROMANIAN ECONOMY

Summary/Abstract: The self-regulation degree of national economy system, represented through: monetary policy rate; the minimum wage; government spending was studied in relation to sovereign debt volume. Thus, based on the data set related parameters considered: monetary policy rate, minimum wage, government spending and debt in the medium and long term, contains monthly data, period of analysis being the 2003-2014, period was estimated to what extent is adjusted national economy in terms of increasing the system, with a given value of the country's debt volume. The obtained Error Correction Model reflects the degree of national economic self-tuning, concretized on the macroeconomic strategy function, based on the loan. According to the study presented, significant rate, adjusting the economic system by means of loans made by the government will induce, in Romania, a sovereign rate becoming more pronounced. In Romania, the strategies for maintaining national economy, at a minimum necessary condition of survival by making loans, are not sustainable in the long term, but short term.

• Details
• Contents