Lucian Croitoru
Lucian Croitoru
Economist, Professor, Ph.D., the Bucharest University of Economic Studies, adviser on monetary policy issues of the governor of the National Bank of Romania
Will the Coronavirus Amplify the Role of the Government in the Economy?

Will the Coronavirus Amplify the Role of the Government in the Economy?

A defining phenomenon for virtually the last hundred years is the expansion of state influence in all areas. The extreme was reached in the communist and fascist countries, where, under dictatorship, all freedoms were altered. In Western democracies, freedoms made progress, but the struggle between governments and markets to play the central role in managing the economy has sometimes resulted in serious disruptions of market freedom. The alteration occurred due to serious economic difficulties. The drastic limitation of the freedom of financial markets after the crisis of 1929-1933 is known. More recently, the economic and social difficulties that emerged after 2008 have been used by governments to limit the freedom of financial markets and to increase the state’s role in managing the economy. Will a severe recession caused by the coronavirus be an opportunity for a renewed strengthening of this trend? The concern for the principle of market freedom contained in this question could be seen as injudicious, as the functioning of the society seems to be dictated by the rapid resolution of various situations that appear to us as urgent. However, neglecting the principles in decision-making could be a way that may go unnoticed of moving to a type of society that we do not want.  More


Pandemic: How to Avoid What Is Worse

Pandemic: How to Avoid What Is Worse

In addition to major health issues, COVID-19 creates major economic problems. The risk of a deep global recession is very high. It is a shock that reduces supply, especially through the shock on the labour force, through illness or social distancing, resulting in the closure of many activities in different industries. Some activities were closed by private decisions, others were closed as a result of social distancing measures imposed by the authorities. Regardless of their source, these decisions triggered a supply-side shock, which translates into a shock on the demand side. The two shocks may be self-reinforcing and can lead to disaster. More


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OEconomica No. 1, 2016