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Fiscal and monetary policy effects on economic growth in Romania (1990-2020)

Author

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  • Ismail AMANI

    (University of Oran 2 Mohamed ben Ahmed, Algeria)

  • Brahim BOUYACOUB

    (University of Oran 2 Mohamed ben Ahmed, Algeria)

Abstract

This research paper aims to assess the impact of both fiscal and monetary policy on economic growth in Romania. Hence, an empirical model elaborated and estimated by ARDL method covering a period between 1990 and 2020. Results show that fiscal policy has a significant positive impact on growth in both short and long run while monetary policy has a positive impact on economic growth only in short term. To notice a negative impact of inflation in both short and long term enhancing the role of monetary policy.

Suggested Citation

  • Ismail AMANI & Brahim BOUYACOUB, 2022. "Fiscal and monetary policy effects on economic growth in Romania (1990-2020)," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(3(632), A), pages 197-206, Autumn.
    • Handle: RePEc:agr:journl:v:3(632):y:2022:i:3(632):p:197-206
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    References listed on IDEAS

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    1. Alberto Alesina & Filipe R. Campante & Guido Tabellini, 2008. "Why is Fiscal Policy Often Procyclical?," Journal of the European Economic Association, MIT Press, vol. 6(5), pages 1006-1036, September.
    2. Rudiger Ahrend & Joaquim Oliveira Martins, 2003. "Creative Destruction or Destructive Perpetuation: The Role of Large State-owned Enterprises and SMEs in Romania During Transition," Post-Communist Economies, Taylor & Francis Journals, vol. 15(3), pages 331-356.
    3. Mihai Ioan Mutaşcu & Dan Constantin Dănuleţiu, 2011. "Taxes And Economic Growth In Romania. A Var Approach," Annales Universitatis Apulensis Series Oeconomica, Faculty of Sciences, "1 Decembrie 1918" University, Alba Iulia, vol. 1(13), pages 1-10.
    4. Zaman, Gheorghe & Georgescu, George, 2011. "Sovereign risk and debt sustainability: warning levels for Romania," MPRA Paper 32924, University Library of Munich, Germany.
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    Keywords

    fiscal; monetary; ARDL; growth; Romania.;
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