According to Keynes, increasing of the public investment is one of the best solutions to economic recovery, since it causes strong effects upon the economic growth. However, according to recent studies, public investment expenditure generates less effect in the short term, due to the lags...

In this study we analyzed the trade, financial and structural asymmetries between the core and periphery of the Euro Area, and between these countries and seven CEE economies, respectively. The study includes an investigation of the trade, financial integration and sectoral specialization...

The objective of this study is to make a synthesis of the differences between two new macroeconomic views. A New Consensus has arisen among neoclassical and New-Keynesian economists, such as Romer, Taylor and Walsh. This new view seeks to redefine the application of monetary policy by...

This paper attempts to analyze the relationship between exports, investments and economic growth in Romania. For the search of this relationship I use a multivariate autoregressive VAR model. The results of cointegration analysis showed that there is one cointegrated vector among exports,...

This study analyzes the particularity of the structural adjustment process of the Romanian economy compared to the evolution of the new member countries of the European Union. Romania registers the highest level of structural “divergence” compared with the European average. This fact can...

The objective of this paper is to apply some decompositions of the production function to explain the impact of the labour, capital and factor productivity (TFP) upon the economic growth in the euro area. To achieve this objective, I have used the results obtained in the economic literature,...

In this study, I have researched the relevance of investments and exports in explaining the economic growth process in Romanian economy, between 1999 and 2006 years. For this, I have used a traditional Cobb-Douglass production function. The results of its estimation show that the growth rate was...

The loss of the sovereign interest rate and exchange rate instruments is the main potential cost of joining a monetary union since it becomes more difficult to adjust swiftly to shocks. In the case of demand shocks that affect all countries more or less equally (symmetric shocks), the loss of...

The budgetary position in the euro area and the EU improved significantly in 2007 compared to the previous year. The headline deficit declined to 1.6 % of GDP in 2006 and 1.1 % of GDP in 2007, down from 2.5% of GDP in 2005. The structural budget deficit diminished from 2% of GDP in 2005 to 0.8%...

The purpose of this paper is to analyse the characteristics of an inflation targeting strategy, using the Barro-Gordon model specific tools. This paper uses the initial Barro-Gordon concepts of inflationary social costs and benefits, adding a new dimension generated by the cost of output...