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The Impact of the National Bank of Romania's Monetary Policy on the Banking Credits, the Domestic Savings and Investments (As Compared to the Other Central and Eastern European Countries)

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Author Info
Radulescu, Magdalena (Ph.D., Lecturer, University of Pitesti, Romania)

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Abstract

After the centrally-planned economy ceased to exist, the process of post-socialist transformations has advanced significantly. The countries of the Central and Eastern Europe (CEE), Southern and Eastern Europe (SEE) and the Commonwealth of Independent States (CIS) have been involved since in vast systematic changes. Undoubtedly, these changes have been leading to fully-fledged market economies, although the precise outcome of transformation was not going to be the same for all the countries involved. The main objective of the restructuring of the banking systems was to create some modern such systems, according to the international standards, which could directly support the development and the stability of the economies. This objective could be achieved by tight efforts of both the central banks and commercial banks. In the current economic environment, where the most important goal is globalization and openness to the international trends, where the competition becomes sounder every day and the rise in the quality is necessary, the firms face an important need for capital and for short-term and long-term funds, and the role of the banks in supporting this development and in ensuring and sustaining the macroeconomic balance becomes crucial. The paper investigates the role of the monetary policy in the area of the banking credits of the commercial banks, in the savings area and in the investments area and their implications on the macroeconomic balance (current account balance, budget balance and private balance). The analysis is based more on the Romanian case as compared to the other countries in the Central and Eastern European region.

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Publisher Info
Article provided by Institute for Economic Forecasting in its journal Romanian Journal of Economic Forecasting.

Volume (Year): 3 (2006)
Issue (Month): 2 (June)
Pages: 10-31
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Handle: RePEc:rjr:romjef:v:3:y:2006:i:2:p:10-31

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Related research
Keywords: monetary policy; minimum reserves; discount rate; banking system; banking credit; domestic savings; investments; current account balance.;

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Find related papers by JEL classification:
E21 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
E22 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Capital; Investment; Capacity
E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
E63 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Comparative or Joint Analysis of Fiscal and Monetary Policy; Stabilization

References listed on IDEAS
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