The global financial crisis: management of deficits and debts
Author:Constantin Ciutacu, Luminita Chivu, Raluca Iorgulescu
JEL:F34, H63, H74
DOI:
Keywords:global financial crisis, deficit management, indebtness rate, net landing and net
borrowing, foreign/trade deficit, domestic/budgerary deficit
Abstract:
The boom of world trade, the unprecedented openness of domestic markets, regional
integration, and the persistence and magnitude of globalisation are as many challenges to
the management of the internal balance between revenues and expenditures, both in the
context of international, regional, national, and company mechanisms, and for the
individual households and consumers. The coexistence of foreign deficits/trade and
domestic deficits/ budget at macro level, at the same time with the accumulation of high
levels of indebtedness of the states, non-financial corporate entities, and individual
households requires, in the context of the present global financial crisis, new theoretical and
practical approaches, new institutions, and new policies capable to secure the sustainability
of growth, and to diminish the risk of increasingly unpredictable disturbances.