EXCHANGE RATE AND ECONOMIC GROWTH. THE CASE OF ROMANIA
Journal Title: CES Working Papers - Year 2010, Vol 2, Issue 4
Abstract
Considering the difficulties created by the economic crisis, many exporters have criticized the National Bank of Romania (NBR)’s policy regarding the exchange rate evolution. They argue that depreciation is a necessary condition for recovery and not financial stability. On the contrary, Romania cannot afford a shock in the exchange rate level. The risk associated with such a measure is too high for an emerging country and it annihilates any export competitive advantages. Therefore, depreciation may delay the imperative of Romanian economic recovery. A solid economic recovery should have as starting point a financial system sound and stable. Excessive exchange rate depreciation jeopardizes the financial soundness of banks and the borrower’s ability to repay their loans. Therefore, it creates inflationary flare-ups, particularly dangerous for the economy of any state.
Authors and Affiliations
Nicolae Ghiba
Keywords
Related Articles
- EP ID EP150158
- DOI -
- Views 105
- Downloads 0
The effectiveness of the EU economic governance framework
The purpose of this paper is to evaluate the effectiveness of the European Union’s (EU) economic governance framework as a key component and driver of the EU - Economic and Monetary Union (EMU). Considerable measures to...
FREE TRADE AND THE ROOTS OF MODERN IMPERIALISM
In his work, „Nation, State, and Economy” (1919), Ludwig von Mises claims that the idea of liberalism starts with the freedom of the individual and it rejects all rules of some persons over others. This paper aims to ill...
THE SUSTAINABILITY OF ROMANIA’S EXTERNAL DEBT DURING THE RECENT FINANCIAL CRISIS
Between the sustainability of the current account deficit and the sustainability of the external debt there is a direct connection: the accumulation of external deficits generates in a certain degree the increase of the...
THE LOYAL CUSTOMERS’ PERCEPTION REGARDING THE ONLINE BUYING PROCESS
The purpose of the research is to investigate the Romanian online customers’ perception as regards to the process of buying products from the Internet. The research objectives are: (1) to identify the advantages and disa...
EU – A STRONGER GLOBAL ACTOR: NEW CONTEXTS FOR EU-KOREAN RELATIONS
European Union (EU) is currently confronting a series of challenges to its internal dynamics as well as its position on the international arena. However, EU continues to rely on its normative power in order to influence...