Volume 1

Foreign Direct Investment (FDI) represents a condition sine qua non for a sustainable development of Romania, taking into consideration the fact that the domestic capital is not enough to assure a positive and significant growth. The present study uses the multiple linear regression to determine the main factors which influence FDI level in Romania. The international reserve and the capital market index BET have a direct and positive impact on the foreign investment flow, while the short, medium and long private and public external debt proved to influence direct, but in a negative way, the FDI.

Andersen and Jordan (1968) and Andersen (1971) argued that fiscal actions have a negligible effect on nominal income and can not sustain a stable and balanced economic growth. Also, they argued, along with other researchers who have embraced monetarism ideas from the Federal Reserve Bank of St. Louis, that the budget deficit presents negativeeffects in the economy that limit private investment. In this article, we analyzed the empirical relationship that is established between the tax actions and the long and short term national income in the U.S. economy and the economies of Eurozone.

This paper summarizes the results of empirical research on European Union s evolution in terms of macroeconomic stability in a period in which member countries crossed from a liquidity crisis to a sovereign debt crisis. So, the evolution of the EU member countries is analyzed as the sovereign debt crisis has worsened and has become increasingly dangerous for the stability of the European economy. The research that is the subject of this paper aims to segment the EU member countries according to the degree of macroeconomic stability. Also, this segmentation process is performed according to two indicators that are highly important for macroeconomic stability, namely the sovereign debt, expressed as public debt to GDP, and fiscal and budgetary discipline, expressed by the ratio of budget balance to GDP.

This paper aims to analyse the market risk (estimated by Value-at-Risk) on the Romanian capital market using modern econometric tools to estimate volatility, such as EWMA, GARCH models. In this respect, I want to identify the most appropriate volatility forecasting model to estimate the Value-at-Risk (VaR) of a portofolio of representative indices (BET, BET-FI and RASDAQ-C). VaR depends on the volatility, time horizon and confidence interval for the continuous returns under analysis. Volatility tends to happen in clusters. The assumption that volatility remains constant at all times can be fatal. It is determined that the most recent data have asserted more influence on future volatility than past data. To emphasize this fact, recently, EWMA and GARCH models have become critical tools in financial applications. The outcome of this study is that GARCH provides more accurate analysis than EWMA.This approach is useful for traders and risk managers to be able to forecast the future volatility on a certain market.