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Interest Rate Pass-Through in Romania and Other Central European Economies

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  • Alexander F. Tieman

Abstract

Interest rate pass-through from policy interest rates to market rates and inflation has been hypothesized to play a lesser role in Romania than in other Central European transition economies. This paper tests this hypothesis and concludes that it cannot be supported by the data. Hence pass-through in Romania is concluded to be in line with that in comparable economies in the region. Moreover, the interest rate pass-through has become more pronounced over time.

Suggested Citation

  • Alexander F. Tieman, 2004. "Interest Rate Pass-Through in Romania and Other Central European Economies," IMF Working Papers 2004/211, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2004/211
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