Abstract

This paper aims to create an image both in terms of description and in terms of graphical representation, with multiannual coverage (2007–2019), the evolution of the financial indicators of the population, and their impact on the national economy. The main objective is to establish the basic pillars of the concentrated table of population financial indicators in terms of the values of absolute primary indicators, on the basis of which the values of the three relevant relative indicators that characterize the financial situation of the population were calculated directly for the potential and performance of the national economy, especially in the current context of the COVID-19 pandemic. The research methodology was based on a series of numerical data from public databases, tools, and appropriate research methods based on the calculation of primary indicators, and indicators derived by appropriate calculation formulas, for the identification of factors influencing the financial status of the population at and a comparative analysis of the financial assets and liabilities of households in Romania and the European Union. The results of the paper are given by the evolution of primary indicators on the characterization of the financial situation of the population in 2007–2019, especially for the active population, and are directly influenced by the quality of eligible employment and employed adults, as well as the sustainability of the national economy. The personal contribution of the research team consists of the mathematical correlations given by the population finances for the economy of a state, which are extremely relevant, especially since, depending on their positive or negative levels, systemic financial and social imbalances are created with direct impact on the sustainability of the national economy. Thus, we want to determine these financial indicators relevant to the economy. Additionally, due to the COVID-19 pandemic, the related issues to the population finances have aggravated and as such, there is a need for structural changes and adoptions. Finally, as an immediate and less costly solution, this study comes up with the suggestion of shifting the national economy toward frugality, therefore, significantly supporting sustainable development.

Highlights

  • A frugal economy strives to create more economic, social, and ecological value simultaneously while wisely optimizing the use of all available resources [1,2]

  • We considered the following hypotheses: calculation of primary indicators, based on which derived indicators were developed, identification of factors influencing the financial status of the population at the national and European level, and a comparative analysis of financial assets and liabilities of households in Romania and the Expenditure reductions played a key role in many small open economies during fiscal consolidation, with large declines in public investment [11]

  • We considered the following aspects: calculation of primary indicators, based on which the 16 derived indicators were developed, identification of factors influencing the financial situation of the population at the national and European level, as well as a comparative analysis of assets and liabilities of households in Romania and the Regarding the primary indicators, they registered mainly higher values compared to the previous period

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Summary

Introduction

A frugal economy strives to create more economic, social, and ecological value simultaneously while wisely optimizing the use of all available resources [1,2]. The above-mentioned definition is compact and clear, the term frugal depends upon perspectives and has been given too many definitions [3]. Two opposing approaches to frugality are the positive one and the negative one. Frugal innovations in the economy are generally understood to be low-cost and efficacious, new or adapted products (or services), mostly emerging from contexts of institutional voids and resource constraints, involving the creative use of existing resources [4]. Many businesses and economies are looking to find ways to “do more with less” [7], by trying to maximize the value of the existing

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