Discouraging consumption beyond a certain limit turns into its opposite: consumption from imports and stagflation

Specialists agree that exports will be the driver of the Romanian economy in 2010. Also, the same macroeconomic experts agree any consumption-based increase generates deficits and hence it is not good. There is, however, a limit beyond which discouraging consumption can turn exactly into its reverse: boosting consumption from imports and stagflation. This happens when the plunging domestic demand leads to the dissolution of supply chains through which domestic resources are turned into finite products for Romanian consumers. From that moment, Romanian consumers will make purchases only from imports and domestic producers will collapse. The main challenge of the Romanian economy for the following period will be to find ways to boost supply chains, namely some organised systems turning local resources into finite products aimed at Romanian consumers, and not be obsessively concerned about the consumption issue.