IDEAS home Printed from https://ideas.repec.org/a/rau/journl/v10y2016i1p51-65.html
   My bibliography  Save this article

Inflation In Romania And Its Evolution In View Of Accession To The Eurozone

Author

Listed:
  • Nedelescu Dumitru Mihai

    (Romanian American University, Bucharest, Romania)

  • Stănescu Maria Cristina

    (Romanian American University, Bucharest, Romania)

  • Botea Lucian

    (Romanian American University, Bucharest, Romania)

  • Croitoru Lucia

    (Romanian American University, Bucharest, Romania)

  • Iordache Gabriel

    (student, Romanian American University, Bucharest, Romania)

Abstract

In recent decades, the main problem of the world economy was a general rise in prices of goods. The pressure generated by the increase in prices leads to significant distortions in the monetary, economic, political and social areas. Inflation is the main factor of economic crisis by discouraging investment and causing migration of capital. The deteriorated stability created by inflation is strongly affecting private sector decisions to invest or develop, with final effects in reducing production and eventually stagnation. After years of high inflation, Romania has faced in recent years with a significant process of disinflation. This has very strong implications in the development of Romania's economy and foreign trade activity. In econometric models, the main statistical indicator for inflation rate is HIPC. Accession to the EU increases the importance of the HICP. Inflation nominal convergence criteria for joining the euro area is given by the HICP and the ECB defines price stability as an annual increase in the HICP of less than but close to 2%.

Suggested Citation

  • Nedelescu Dumitru Mihai & Stănescu Maria Cristina & Botea Lucian & Croitoru Lucia & Iordache Gabriel, 2016. "Inflation In Romania And Its Evolution In View Of Accession To The Eurozone," Romanian Economic Business Review, Romanian-American University, vol. 10(1), pages 51-65, May.
    • Handle: RePEc:rau:journl:v:10:y:2016:i:1:p:51-65
    as

    Download full text from publisher

    File URL: http://www.rebe.rau.ro/RePEc/rau/jisomg/SU16/JISOM-SU16-A06.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Barth, James R & Bennett, James T, 1975. "Cost-push versus Demand-pull Inflation: Some Empirical Evidence: Comment," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 7(3), pages 391-397, August.
    2. Hendry,David F. & Morgan,Mary S., 1997. "The Foundations of Econometric Analysis," Cambridge Books, Cambridge University Press, number 9780521588706, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. repec:rau:journl:v:10:y:2015:i:3:p:23-42 is not listed on IDEAS
    2. Neil R. Ericsson, 2021. "Dynamic Econometrics in Action: A Biography of David F. Hendry," International Finance Discussion Papers 1311, Board of Governors of the Federal Reserve System (U.S.).
    3. Guido W. Imbens, 2022. "Causality in Econometrics: Choice vs Chance," Econometrica, Econometric Society, vol. 90(6), pages 2541-2566, November.
    4. Aurélien Goutsmedt & Erich Pinzon-Fuchs & Matthieu Renault & Francesco Sergi, 2015. "Criticizing the Lucas Critique: Macroeconometricians' Response to Robert Lucas," Post-Print halshs-01179114, HAL.
    5. Guido W. Imbens, 2020. "Potential Outcome and Directed Acyclic Graph Approaches to Causality: Relevance for Empirical Practice in Economics," Journal of Economic Literature, American Economic Association, vol. 58(4), pages 1129-1179, December.
    6. Christopher L. Gilbert & Duo Qin, 2005. "The First Fifty Years of Modern Econometrics," Working Papers 544, Queen Mary University of London, School of Economics and Finance.
    7. Francisco Louca, 1999. "The econometric challenge to Keynes: arguments and contradictions in the early debates about a late issue," The European Journal of the History of Economic Thought, Taylor & Francis Journals, vol. 6(3), pages 404-438.
    8. Yash P. Mehra, 1989. "Wage growth and the inflation process: an empirical note," Working Paper 89-01, Federal Reserve Bank of Richmond.
    9. James H. Stock & Francesco Trebbi, 2003. "Retrospectives: Who Invented Instrumental Variable Regression?," Journal of Economic Perspectives, American Economic Association, vol. 17(3), pages 177-194, Summer.
    10. James J. Heckman & Rodrigo Pinto, 2018. "Unordered Monotonicity," Econometrica, Econometric Society, vol. 86(1), pages 1-35, January.
    11. Michaelides, Panayotis G. & Belegri-Roboli, Athena & Arapis, Gerasimos, 2009. "Early Nonlinear Modelling in Economic Analysis: The Hicks Model for Greece Revisited," MPRA Paper 67112, University Library of Munich, Germany.
    12. Christopher L. Gilbert & Duo Qin, 2007. "Representation in Econometrics: A Historical Perspective," Working Papers 583, Queen Mary University of London, School of Economics and Finance.
    13. Williams Corey J. M., 2023. "Unraveling Producer Price Inflation Pass-Through: Quantification, Structural Breaks, and Causal Direction," Economics - The Open-Access, Open-Assessment Journal, De Gruyter, vol. 17(1), pages 1-16, January.
    14. Heckman, James & Pinto, Rodrigo, 2015. "Causal Analysis After Haavelmo," Econometric Theory, Cambridge University Press, vol. 31(1), pages 115-151, February.
    15. Jovanovic, Franck & Schinckus, Christophe, 2017. "Econophysics and Financial Economics: An Emerging Dialogue," OUP Catalogue, Oxford University Press, number 9780190205034, Decembrie.
    16. Falnita, Eugen & Sipos, Ciprian, 2007. "A multiple regression model for inflation rate in Romania in the enlarged EU," MPRA Paper 11473, University Library of Munich, Germany.
    17. Julia Campos & Neil R. Ericsson & David F. Hendry, 2005. "General-to-specific modeling: an overview and selected bibliography," International Finance Discussion Papers 838, Board of Governors of the Federal Reserve System (U.S.).
    18. Max Albert, 2004. "The Voting Power Approach," European Union Politics, , vol. 5(1), pages 139-146, March.
    19. Neil R. Ericsson, David F. Hendry & Kevin M. Prestiwch, "undated". "The UK Demand for Broad Money over the Long run," Economics Papers W29, Economics Group, Nuffield College, University of Oxford.
    20. David Hendry & Grayham E. Mizon, 2012. "Forecasting from Structural Econometric Models," Economics Series Working Papers 597, University of Oxford, Department of Economics.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rau:journl:v:10:y:2016:i:1:p:51-65. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Alex Tabusca (email available below). General contact details of provider: https://edirc.repec.org/data/firauro.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.