Advanced Search
MyIDEAS: Login

Inflation Targeting in the Romanian Banking Brushwood

Contents:

Author Info

  • Georgiana BALABAN

    (Bucharest Academy of Economic Studies)

  • Dorel AILENEI

    (Bucharest Academy of Economic Studies)

Registered author(s):

    Abstract

    As a result of joining the global trend of the monetary policy modernization, Romania has adopted the inflation targeting strategy in August 2005. Although the implementation conditions have been prepared in advance on the background of a medium-term disinflation process, the National Bank of Romania (NBR) succeeded in reaching the inflation target only in one year (2006). Beyond the inevitable difficulties specific to emerging countries, the implementation of this strategy, that has proved to be effective even in conditions of crisis, was hampered by an unfavourable economic and political environment. In this paper, the authors aim to analyse the responses of the Romanian banking system to the signals of monetary policy sent by the NBR. In order to do this, the dynamics of the non-governmental domestic credit and the interest rates channel have been econometrically tested. The results of the analysis showed a chaotic growth in lending over the last years (2005-2011) in Romania, respectively an uncooperative attitude of the commercial banks on reaching the objectives of the monetary polic.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://store.ectap.ro/articole/718.pdf
    Download Restriction: no

    File URL: http://www.ectap.ro/articol.php?id=718&rid=86
    Download Restriction: no

    Bibliographic Info

    Article provided by Asociatia Generala a Economistilor din Romania - AGER in its journal Theoretical and Applied Economics.

    Volume (Year): XVIII(2012) (2012)
    Issue (Month): 5(570) (May)
    Pages: 19-32

    as in new window
    Handle: RePEc:agr:journl:v:5(570):y:2012:i:5(570):p:19-32

    Contact details of provider:
    Postal: Bucharest, Calea GriviĊ£ei nr. 21, sector 1, 010702
    Phone: +40 21 3 12 22 48
    Fax: +40 21 3 12 97 17
    Email:
    Web page: http://www.asociatiaeconomistilor.ro/
    More information through EDIRC

    Related research

    Keywords: monetary policy; inflation targeting; Granger causality tests; interest rate; commercial banks.;

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:agr:journl:v:5(570):y:2012:i:5(570):p:19-32. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Socol Cristian).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.