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The Relationship Between The Exchange Rate And The Inflation: Empirical Survey For Romania

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  • Catalina Adriana Handoreanu

    (Academy of Economic Studies, Bucharest)

Abstract

The influence on price level of changes in exchange rate comeback in the last period in the attention of economists and policy makers. The price level movement due to the changes in the exchange rate is named exchange rate pass-through and is important for the monetary policy and for the exchange rate choice. A reduced passthrough makes the monetary policy more independent and more easily implementation of inflation targeting. This working paper analyzed this phenomenon through a recursive equation system which is estimated by an unrestricted VAR.

Suggested Citation

  • Catalina Adriana Handoreanu, 2008. "The Relationship Between The Exchange Rate And The Inflation: Empirical Survey For Romania," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 11(11(528)(s), pages 276-284, November.
    • Handle: RePEc:agr:journl:v:11(528)(supplement):y:2008:i:11(528)(supplement):p:276-284
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