Abstract—Last years the world economy changed and the sovereign risk default increased dramatically for many countries. Countries like Greece, Iceland or Portugal needs special financial rescue plans. For these countries the main mistake was an imprudent fiscal and budgetary policy last years and also the lack of monetary policy independence. This paper examines the impact of fiscal policy on sovereign default risk on Romanian economy and the dynamic of country risk during global crisis. In order to analyze the sustainability of fiscal policy in Romania last years, we propose a macroeconometrical model in order to study the influence of fiscal policy on sovereign risk default in Romania. We test our results using various sustainability tests and the result was conclusive.
Index Terms—Fiscal policy, macroeconometrical model, sovereign risk, sustainability.
M. Daniel Roman is with The Bucharest Academy of Economic Studies, Department of Informatics and Economic Cybernetics, 6, Romana Square, Romania (e-mail: firstname.lastname@example.org).
M. Roman is with The Bucharest Academy of Economic Studies, Department of Statistics and Econometrics, 6, Romana Square, Romania (e-mail: email@example.com).
M. Talvan (PhD. Student) is with The Bucharest Academy of Economic Studies, 6, Romana Square, Romania (e-mail: firstname.lastname@example.org).
Cite: Mihai Daniel Roman, Monica Roman, and Magdalena Talvan, "A Macroeconometrical Model of Sustainable Fiscal Policy. Study Case on Romania ," International Journal of Trade, Economics and Finance vol. 3, no. 1, pp. 73-77, 2012.