Romania: From the quantitative monetary aggregates to inflation targeting
AbstractFor Romania, the shift from monetary targeting toward inflation targeting was done under the influences of following events: - The existing pressure coming from refinancing the public debt and from the necessity to remain in certain boundary with the budgetary deficit. - NBR assigned monetary control and liquidity management functions on the mechanism of minimum required reserves. - Romanian strategy was deeply hurt by the low development of its financial markets, and the low level of monetization. - A precondition of potential success in the case of inflation targeting was fulfilled - the improvement of taxes collection and the reduction of money laundry. - The important amounts of quantitative increases in Foreign Direct Investment (yearly Euro 4 billion), and also in the rest of M2’s components, forced the necessity of a new strategy based mainly on non-monetary aggregates
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 396.
Date of creation: Jun 2006
Date of revision: Sep 2006
monetary policy; inflation targeting; Romania; monetary aggregates;
Find related papers by JEL classification:
- E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-12-04 (All new papers)
- NEP-CBA-2006-12-04 (Central Banking)
- NEP-MAC-2006-12-04 (Macroeconomics)
- NEP-MON-2006-12-04 (Monetary Economics)
- NEP-TRA-2006-12-04 (Transition Economics)
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