PRICE STABILITY VERSUS FINANCIAL STABILITY IN ROMANIA
PRICE STABILITY VERSUS FINANCIAL STABILITY IN ROMANIA

Author(s): Marinela Bărbulescu, Magdalena Radulescu
Subject(s): Economy, Business Economy / Management, Accounting - Business Administration
Published by: ASERS Publishing
Keywords: price stability; financial stability; inflation targeting policy; Romania
Summary/Abstract: The price stability-financial stability relation is based on the assumption that both types of stability offer each other long-term support. These two concepts are not similar, although they are strongly connected. Price stability is an important condition for achieving financial stability. This chapter aims to present the opinion of the literature regarding these two concepts and the relationship between them and to analyze this relationship in Romania’s case. Romania is an open economy that faced many financial inflows in the post-communist era. It is important to see their impact on the Romanian financial and price stability and how the National Bank of Romania acted in this context.

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