Academic journal article Economics, Management and Financial Markets

Romania and the Global Economic Crisis

Academic journal article Economics, Management and Financial Markets

Romania and the Global Economic Crisis

Article excerpt

ABSTRACT. The worldwide recession has damaged Romania's economy, affecting all its economical branches like in so many other countries. At global level stock markets have fallen, large financial institutions have collapsed or have been bought out, and governments in even the richest countries have had to come up with rescue packages to bail out their financial systems. Knowing and understanding the global financial crisis, implies using and applying realistically all economic theories as part of the scientific knowledge. Practical action always guided humans to appropriate strategies molded on our current time and space according to the national and international context. At the present time this preliminary discussion about the crisis needs to be built upon the general economic theory, taking in consideration that this theory has both Romanian and European aspects incorporated which are to be applied to the current situation of Romania after joining the EU.

JEL Codes: A10; E00

Keywords: global economic crisis; economic rationality and hope; real economy; global consciousness

1. Introduction

The current social environment is very diverse, full of new labels and tags, characterized by large gaps, different categories of wealth and welfare. To fully understand and correctly evaluate the current flow of facts and future ones we need to take as a starting point the economic theory as a reference point so that we can ensure a correct guidance throughout the spider web of the modem surroundings. The economic theory contains numerous aspects, with central focus items needed for methodology guidance so that the economic study can be oriented to correct path of approach, ensuring rationality by including time aspect in the epistemological hierarchy.

In general terms thinking as an economist means to acknowledge the economic problems and having the urge to resolve them by positioning them at the beginning of all scientific investigations. This implies not necessarily studding things for the first time but meanly establishing solid connections between the already-known facts and the facts to be clarified or studied. The process aims at gathering new data and systematization of the existing ones, the clarification of the so called "eternal themes" and also building new concepts.

This process needs urgently the melting pot process of the international economic language, to diminish the language terminology and to universalize the economic language.

A fluid and heterogeneous language is required to be applied correctly for all economic specialists and also for the economic agents to ensure a fluid dialog in the current context of economic worldwide market and of free movement of the information and also the current trend of world globalization and economic integration worldwide.

2. Coordinates of Contemporary Crisis

The economic theory allows people to develop an elevated thinking model. An attitude towards the current situation leading to the progress of knowing and understanding the current economic complexity, its mechanism, and they are able to formulate hypothesis and finding pertinent solutions for the current situation.

Assimilating the economic theory is a current time requirement to be able to evolve on the long term. Solving an economic situation in this time of informational flood needs a harmonious balance between theory and practice taking also into consideration that if the theoretical problem is not solved the practical situation also will be impaired. Therefore we need to focus on the economic activity towards the key points like: the economic level and its structure of industry, administrative or regional branch; productive and administrative territorial or regional correlation between owner and manager, the relationship between extensive versus intensive growth, between the different field areas, between raw materials, energy and the degree of exploitation of each one; the status between the economic implication of the state and the economic freedom connected to the property structures, the status between the correct usage of the manufacturing materials at the traders level and the economic cycle; the fiscal system and other improvements at monetaryfinancialcurrency level; the leverage between efficiency and income, the relation of economic growth, the demographic evolution and the labor force vacancy. …

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