ANALYSIS OF AUTOMATIC STABILIZERS FOR THE CRITERIA OF THE GENERAL GOVERNMENT DEFICIT AND SURPLUS AS PERCENTAGE OF GDP – CASE STUDY FOR ROMANIA

Alina Ailincă ()

Journal of Financial and Monetary Economics, 2019, vol. 7, issue 1, 17-35

Abstract: The Maastricht Treaty but also the programmatic documents of the European Union require that an automatic stabilization mechanism has to be devised in order to meet the criteria of nominal economic convergence. For the analysis of the budget deficit expressed as a percentage of GDP, the literature does not yet draw up a curdled analysis, but only either an analysis in particular on the revenue side, emphasizing the qualities of the progressive fiscal regimes in the automatic stabilization, or an analysis on the side of the budgetary expenses, recognized in having the capacity of economic stabilization especially in Western economies. Thus, the article is designed to be a plea for designing a rather automatic mechanism for reaching the 3% of GDP threshold imposed by the Maastricht criterion regarding the budget deficit, carrying out an empirical, econometric analysis for Romania starting from the functioning mode of the instruments used by the Ministry of Finance.

Keywords: convergence; automatic stabilization; Romania (search for similar items in EconPapers)
JEL-codes: E63 H11 H62 (search for similar items in EconPapers)
Date: 2019
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