Factors That Contribute To The Formation Of Inflation
AbstractThe policy of targeting the exchange rate is described by a reaction function that correlates the depreciation rate with the difference between internal and external inflation. Inflation in Romania is created, on the costs side, significantly, both by increasing wages faster than productivity, as well as by RON depreciation. Significant disinflation has costs in terms of increasing unemployment rate. As with unemployment, labor productivity contribution, estimates show that the economic restructuring process was not fast enough at least according to the needs of disinflation.
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Bibliographic InfoArticle provided by Spiru Haret University, Faculty of Accounting and Financial Management Constanta in its journal Journal of Academic Research in Economics.
Volume (Year): 3 (2011)
Issue (Month): 3 (November) ()
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Web page: http://www2.spiruharet.ro/facultati/facultate.php?id=9
More information through EDIRC
anti-inflationary policies; inflationary factors; unemployment rate; work productivity.;
Find related papers by JEL classification:
- E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
- E37 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Forecasting and Simulation: Models and Applications
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