Monetary Policy, Inflation Rate and Real Economic Activity in Romania
Monetary Policy, Inflation Rate and Real Economic Activity in Romania
Author(s): Mihai-Ionut Trif, Monica Ioana Pop-Silaghi, Marius-Andrei MureşanSubject(s): Economy
Published by: Alma Mater & Universitatea »Babes Bolyai« Cluj - Facultatea de St. Economice si Gestiunea Afacerilor
Keywords: inflation rate; exchange rate; unemployment rate; inflation targeting
Summary/Abstract: To fulfill the Maastricht criteria regarding inflation in order to join the European Monetary Union, in Romania, price stability became the main focus of the monetary policy. This paper seeks to see the influence of the exchange rate on the inflation rate and to find out if the lowering of the inflation was made with the cost of high unemployment in Romania, using monthly data during 2002-2009. The exchange rate channel still has a high influence on the inflation rate as the coefficient was found significant. A positive aspect that we depicted is that the low level of inflation had not been attained with the cost of a high unemployment rate at least till the signs of the economic crisis became obvious
Journal: Review of Economic Studies and Research Virgil Madgearu
- Issue Year: IV/2011
- Issue No: 1
- Page Range: 181-198
- Page Count: 18
- Language: English
- Content File-PDF