Redefining Economic Policy and Institutional Reform – Support for Economic Growth
The paper addresses the effects of economic crisis from the perspective of theoretical developments and how they were reflected in the economy, both nationally and among the actors of the international system. Basic economic paradigms such as the role of price as a mechanism regulating the operation...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
General Association of Economists from Romania
2010-12-01
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| Series: | Theoretical and Applied Economics |
| Subjects: | |
| Online Access: |
http://store.ectap.ro/articole/534.pdf
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| Summary: | The paper addresses the effects of economic crisis from
the perspective of theoretical developments and how they were reflected
in the economy, both nationally and among the actors of the international
system. Basic economic paradigms such as the role of price as a
mechanism regulating the operation of free markets and the ability to
determine prices to reflect economic developments have been tested in
various markets. In the context of limited resources available, due to
economic contraction it is necessary to redefine accepted social
balances.
The example analyzed in the paper is that of social policies. In
times of economic expansion, modification of such arrangements, even if
suboptimal, proves to be difficult because it involves implicit costs, less
visible. Economic crisis brings out such costs. Changing these social
arrangements requires first the solution and coherent regulatory
mechanisms and implementation. They depend on the quality of
institutions and social coordination system as a whole. If these
mechanisms are complex national, at supranational level we can add
additional layers of decision, which explains the difficulty of coordination. The degree of consistency in decision-making mechanisms
and their quality determine the cost of adapting to new conditions
imposed by the balance.
Coordination mechanisms, either national or supranational
context, are relevant for redefining of a new balance to streamline
existing policies (eg social) that reflects the crisis and the creation of new
arrangements to accommodate new engines economic growth. |
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| ISSN: | 1841-8678 1844-0029 |