IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this article

Monetary Policy Strategies in Romania. Historical overview and challenges for the future

Listed author(s):
  • Apostoaie Marius Constantin
  • Manta Alina


    (Faculty of Economics and Business Administration, “Al. I. Cuza” University of Iasi
    Faculty of Economics and Business Administration, University of Craiova)

This paper looks back at two decades of monetary policy in Romania focusing upon the analytical framework (the so called strategy or regime of monetary policy), which helped to order, analyse and interpret monetary policy relevant data and present and announce policy decisions made by the National Bank of Romania (NBR) to the outside world. In theory as in practice there is an ongoing debate concerning the optimal monetary policy strategy. As we look into the past decades we draw a line and conclude that inflation targeting (IT) eventually emerged as the preferred solution to the complex economical, political and social issues regarding present times for many industrial countries and emerging markets alike. Romania is not an exception. The policy framework has changed throughout the transition period, from broad money targeting (from 1990 till 1996) to high-powered money targeting (from 1997 till 2005), and then to inflation targeting (starting August 2005). The purpose of this paper is to make a critical analysis of the past monetary policy regimes in Romania and highlight what went wrong. Also, the paper reviews some distinguishing features of Romania’s IT monetary policy framework identifying possible challenges that the future holds, including the perspective of joining the Exchange Rate Mechanism (ERM II).

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL:
Download Restriction: no

Article provided by Ovidius University of Constantza, Faculty of Economic Sciences in its journal Ovidius University Annals, Economic Sciences Series.

Volume (Year): X (2010)
Issue (Month): 1 (May)
Pages: 1412-1417

in new window

Handle: RePEc:ovi:oviste:v:10:y:2010:i:1:p:1412-1417
Contact details of provider: Web page:

More information through EDIRC

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:ovi:oviste:v:10:y:2010:i:1:p:1412-1417. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Gheorghiu Gabriela)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.