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Lucian CROITORU
Banca Naţională a României

Over the past 20 years, I have supported the idea that the state intervention in the economy lays at the root of Romania’s most economic problems. Each and every time, I mentioned Romania as an example of a country that abused the state intervention in all fields from bailouts to overregulation. However, in recent years, the developed economies, which we took for a model, did the same. When they had to choose between supporting large companies or letting them down, risking negative economic consequences, many governments regrettably chose to intervene in the economy almost every time. Just as the massive state intervention in Romania has been the underlying cause of the long-term economic problems, so it will generate problems for the countries we admired.


ŒCONOMICA no. 3/2011
Keywords: state interventionism, market process, public policies, economic crisis, adverse incentives, expectations trap
JEL: E60, G01, H30, I38, P43, P51
The State, the Crisis and the Expectations Trap