Romanian Economy in the Interwar Period

• Author: Stefan Gheorghe
• Pages: 195-199

Performance and Risks in the European Economy

195

Romanian Economy in the Interwar Period

Gheorghe Stefan1

Abstract: Resumption of economic progress will be slow, but unevenly, after overcoming the food crisis

of 1920 -1921, Romania will be able to deliver on economic recovery by attracting capital investment,

increase the number of enterprises and workers and especially by increasing the driving force and

technical endowment of enterprises. The central authorities legislation will draw up related protectionist

liberal economic doctrine “by ourselves” in most of the period, according to the political algorithm and

the result of in creasing domestic resource mobilization of capital while limiting the foreign capital in th e

Romanian economy.

Keywords: crisis; economic recovery; protectionist legislation

Introduction

Resumption of economic progress will be slow, but unevenly but after overcoming the food crisis of

1920-1921, Romania will be able to deliver on economic recovery by attracting capital investment,

increase the number of enterprises and workers and especially by increasing the driving force and

technical endowment of enterprises. The Central Authorities will draw up legislation related

protectionist economic liberal doctrine “by ourselves” in most of the period, according to political

algorithm and the result of increasing resource mobilization of domestic capital while limiting the

foreign capital in the Romanian economy.

The interwar period economically subdivides in 4 stages namely:

 the stage of economic recovery 1919-1921;

 the stage of economic growth 1922-1929;

 the stage of economic crisis 1929-1933;

 the stage of of economic growth 1034-1939.

Romania's economic recovery process (1919-1921) assumed the achievement of some absolute

targets similar to those held by many of the European countries affected by war and was characterized

by the need to restore industrial and agricultural production, by regulating monetary circulation and

stagnation of inflation, by balancing the trade and payments balance of budget of revenue and

expenses and the restoration of infrastructure, transport concomitantly with renewed growth.

1 Senior Lecturer, PhD, Department of Economics, Danubius University of Galati, Romania, Address: 3 Galati Blvd., Galati

800654, Romania, Tel.: +40372361102, Corresponding author: stefangheorghe@univ-danubius.ro.