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Subduing High Inflation in Romania: How to Better Monetary and Exchange Rate Mechanisms?

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  • Daniel Daianu
  • Radu Vranceanu

Abstract

Romania’s overall economic performance during the first ten years of transition can be termed so far as disappointing the country has not been able to deliver steady growth, low unemployment and low inflation. This paper focuses on the effectiveness of monetary mechanisms and policies during this period. Special emphasis is set on the exchange rate mechanism. The first part of the text develops a short introduction to relevant monetary theory in the transition context. In the second part, we analyse the stylised facts pertaining to Romanian economy and put forward some weaknesses of its banking system and monetary policies. The conclusion presents a set of recommendations for a reform of the going monetary policy.

Suggested Citation

  • Daniel Daianu & Radu Vranceanu, 2001. "Subduing High Inflation in Romania: How to Better Monetary and Exchange Rate Mechanisms?," wiiw Balkan Observatory Working Papers 5, The Vienna Institute for International Economic Studies, wiiw.
    • Handle: RePEc:wii:bpaper:005
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    Cited by:

    1. Daianu, Daniel & Kallai, Ella, 2008. "Disinflation and Inflation Targeting in Romania," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 5(1), pages 59-81, March.
    2. Marius-Razvan Surugiu & Camelia Surugiu, 2012. "Intra-industry trade in Romania: analysis of the automobile parts and accessories sector," International Journal of Economics and Business Research, Inderscience Enterprises Ltd, vol. 4(1/2), pages 166-179.

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    More about this item

    JEL classification:

    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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