ABOUT THE SUSTAINABILITY OF THE ECONOMIC DEVELOPMENT IN CONDITIONS OF MONETARY REACTIVITY. THE CASE OF THE ROMANIAN SOCIALIST AND POST-SOCIALIST ECONOMY

Chiritescu Dorel-Dumitru and Tomescu-Dumitrescu Cornelia
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Chiritescu Dorel-Dumitru: CONSTANTIN BRANCUSI UNIVERSITY OF TARGU JIU, ROMANIA
Tomescu-Dumitrescu Cornelia: CONSTANTIN BRANCUSI UNIVERSITY OF TARGU JIU, ROMANIA

Annals - Economy Series, 2020, vol. 4, 5-17

Abstract: The extent to which money can interact with the real economy system is an older concern of economists. This comes from the desire to clarify the extent to which money is neutral or interacts with the world of goods and what are the effects of this interaction, if any. People generally tend to believe that the movement of a system is not a desirable state. We are, by our nature, conservatives and believe that the movement, change, only bring trouble, surprises. “A widespread error is the belief that the perfect currency should be neutral and endowed with a constant purchasing power and that the object of the monetary policies should be to maintain this perfect currency. (...) These thinkers are misled by the widespread belief that a state of rest would be more perfect than that of movement. (...) Movement is understood as the absence of balance and full satisfaction” [1; 313]. It resulted the concept of neutrality of money in relation to the world of goods from this way of thinking. However, the social systems in general, but also the economic ones, in particular, are in a continuous movement and transformation. There is no rest in the physical and biological world, as there is no such rest in economic systems either.

Keywords: money neutrality; money reactivity; real economy; monetary economy; biomonetarism; sustainability of development through money; monetary flexibility; economic expansion; currency production function; money in socialism; inflation; shortage inflation (search for similar items in EconPapers)
Date: 2020
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