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Transmission Mechanism of Monetary Policy in Romania. Insights into the Economic Crisis

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Author Info

  • Pelinescu, Elena

    ()
    (Institute for Economic Forecasting, Bucharest, Romania)

Abstract

The paper analyzes the monetary policy transmission mechanism in Romania focusing on the exchange rate channel. The analysis is made in the context of an economy described by a mix of institutional and market behaviors illustrated by a SVAR model in which the restrictions imposed on the coefficients underline the adopted behavior hypotheses. The behavior of the four economic variables, as reflected by the SVAR analysis, is consistent with the measures adopted by the National Bank of Romania after the 2008 economic crisis. In this respect, the results underline three main aspects: 1) the importance of the interest rate channel; 2) the key role of demand, and of stimulating the demand through the right economic measures; 3) the complex impact of the exchange rate channel.

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File URL: http://www.ipe.ro/rjef/rjef3_12/rjef3_2012p5-21.pdf
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Bibliographic Info

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

Volume (Year): (2012)
Issue (Month): 3 (September)
Pages: 5-21

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Handle: RePEc:rjr:romjef:v::y:2012:i:3:p:5-21

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Related research

Keywords: SVAR model; monetary policy transmission mechanism; exchange rate channel;

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References

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Citations

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Cited by:
  1. Iulian Vasile POPESCU, 2014. "Global financial crisis-driven mutations affecting the transmission mechanism customized to monetary policy strategies. A VAR, SVAR and BVAR approach," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(2(591)), pages 35-66, February.
  2. Zina V.MARCU căs. CIORAN, 2013. "Monetary Policy And The Inflation Targeting Strategy," CrossCultural Management Journal, Fundația Română pentru Inteligența Afacerii, Editorial Department, issue 29, pages 197-203, October.
  3. Popescu Iulian Vasile, 2013. "The analysis of monetary policy effects with emphasis on monetary policy strategy types. A VAR approach," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 16(47), pages 57-74, March.

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