The relationship between inflation and the main macroeconomic variables in Romania
The relationship between inflation and the main macroeconomic variables in Romania

Summary/Abstract: The inflation is considered an important economic phenomenon that adversely afects the economy of a state. The purpose of this study is to highlight he signifcant statistical conections betwen the inflation rate and the main macroeconomic variables influencing the inflationary phenomenon (money suply, the monthly net average nominal wage, exchange rate, reference interest rate), depending on the monetary policy strategy adopted by the National Bank of Romania. The research is conducted using monthly data for the period June 197 – December 2013, with the explorative method of Principal Components Analysis. The results indicate the fact that for the period June 197 – July 205, the inflation rate is strongly corelated with the growth rate of monthly net average nominal wage, while for the period after the adoption of the direct argeting regime in August 205, it is observed a strong link betwen the inflation rate and the reference interest rate.

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