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Theoretical and Applied Economics
No. 4 / 2009 (533)

Controversies Regarding the Economic Part Played by the State in Economy

Tiberiu Cristian Avrămescu
Emilia Ungureanu
University of Pitesti

Abstract. One of the important matters of the economic theory and practice is the relation between the state and the economy. For more than 200 years, the economic thought has been dominated by controversies regarding the economic part played by the State. There have been created many theories. Taking as a starting point the economic and social realities, the supporters of various trends have tried to find arguments in favor of or against the involvement of the State in economy, to justify the cases in which it is necessary for the Sate to intervene in economy or to suggest that the State should not intervene in economy.

Keywords: liberalism; Keynesianism; market economy; state economy; centralized economy; governing.

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