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The importance of demand, uncertainty and monetary policy shocks from the euro area for the Romanian economy

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  • George ANTON

    (Bucharest University of Economic Studies, Romania)

Abstract

This paper is evaluating the impact of external shocks that are affecting the Romanian economy by employing a Bayesian approach. By employing three Bayesian VAR models this paper provides an answer on the importance of external shocks using the impulse response functions, variance and historical decompositions. The relevance of the study is a major one as it quantifies the intensity of external shocks coming from the euro area that have the potential to affect the Romanian economy in terms of external demand, uncertainty and monetary policy, aspects which are of high interest especially in the new economic context of the COVID-19 health crisis.

Suggested Citation

  • George ANTON, 2022. "The importance of demand, uncertainty and monetary policy shocks from the euro area for the Romanian economy," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(2(631), S), pages 25-38, Summer.
    • Handle: RePEc:agr:journl:v:2(631):y:2022:i:2(631):p:25-38
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    References listed on IDEAS

    as
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    11. Bilge Erten, 2012. "Macroeconomic Transmission of Eurozone Shocks to Emerging Economies," International Economics, CEPII research center, issue 131, pages 43-70.
    Full references (including those not matched with items on IDEAS)

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