EFFECTS OF MONETARY POLICY IN ROMANIA - A VAR APPROACH
Journal Title: CES Working Papers - Year 2012, Vol 4, Issue 3
Abstract
Understanding how monetary policy decisions affect inflation and other economic variables is particularly important. In this paper we consider the implications of monetary policy under the inflation targeting regime in Romania, based on an autoregressive vector method including recursive VAR and structural VAR (SVAR). Therefore, we focus on assessing the extent and persistence of monetary policy effects on gross domestic product (GDP), price level, extended monetary aggregate (M3) and exchange rate. The main results of VAR analysis reflect a negative response of consumer price index (CPI), GDP and M3 and positive nominal exchange rate behaviour to a monetary policy shock, and also a limited impact of a short-term interest rate shock in explaining the consumer prices, production and exchange rate fluctuations.
Authors and Affiliations
Iulian Popescu
Keywords
Related Articles
- EP ID EP140575
- DOI -
- Views 104
- Downloads 0
SYSTÈMES COMPTABLES DANS LE CONTEXTE DE LA MONDIALISATION
La comptabilité joue un rôle important dans les politiques économiques nationales et internationales et analysées dans le contexte de la mondialisation économique, l’harmonisation des normes comptables, a donné lieu au f...
PROBLEMS AND COSTS OF THE EUROPEAN UNION EXPANSION WITH OVER 27 STATES
Once on his way to enlargement, the European Union has taken a road of no return. History has shown that all candidate countries have become a point of EU Member States. The question thus is not where you go to the Europ...
CHRISTMAS – FROM RELIGIOUS TO LAIC. THE STIMULI THAT “SELL” CHRISTMAS
Romania has been a country with a strong cultural background since ancient times. The Romanian people, born Christian, cherished holy days as part of its daily life, Christmas included. From a religious viewpoint, Christ...
EXPERIENCE OF ROMANIA IN THE ELABORATION AND IMPLEMENTATION OF THE DOMESTIC POLICIES OF EUROPEAN INTEGRATION: LESSONS FOR THE REPUBLIC OF MOLDOVA
This article represents an analysis of the experience of Romania in accession and integration of the state into the European Union. It is a tentative to identify Romanian domestic policies of European integration. In ord...
M&A, COMPETITION AND PERFORMANCE IN THE SLOVENIAN BANKING SYSTEM
The process of mergers and acquisitions is the main method used by financial institution to grow and to obtain better performance. The main effect of the implication of banks in mergers and acquisitions (M&A) transla...