Open AccessIS THERE A CLASSICAL SOLUTION FOR A CONTEMPORARY PROBLEM?
Author(s) -
Nicolae MOROIANU,
AUTHOR_ID,
Daniel-Ștefan BELINGHER,
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Publication year - 2022
Publication title -
proceedings of the ... international management conference
Language(s) - English
Resource type - Conference proceedings
eISSN - 2783-9214
pISSN - 2286-1440
DOI - 10.24818/imc/2021/05.18
Subject(s) - austerity , recession , context (archaeology) , gross domestic product , business cycle , economics , order (exchange) , romanian , hospitality , work (physics) , economic policy , public economics , macroeconomics , tourism , political science , finance , engineering , politics , philosophy , law , mechanical engineering , paleontology , biology , linguistics
This paper presents the connection between the main schools of economic thoughts, which explain the role of governmental intervention in the economy and the importance of wages, as countercyclical stabilizers in an economic system. This work aims to look into the economic European situation during the period which precedes the beginning of the current sanitary crisis, in light of empirical analysis. This analysis uses the corresponding data for two years, 2018 and 2019 and includes a series of activity business sectors considered to be relevant (for instance public administration and HoReCa/hospitality, in the light of the impact the sanitary crisis had upon them). The results of this sectoral analysis have as scientific objective the study of the relationship between the evolution of the staff expenditures in the public administration and the evolution of the Gross Domestic Product, emphasizing the level of correlation between these two. Into the assessed context, the research question remains open: if - in the event of a certain reduction of the staff expenditures from the state budget, in order to reach a balanced budget - this could be a real solution (even if only an emergency solution) since there is a high risk of recession; or even more – could be the trigger factor in driving the Romanian economy to a vicious cycle of austerity.