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The Impact of Monetaru Policy on the Romanian Economy

Author

Listed:
  • Dedu, Vasile

    (Bucharest Academy of Economic Studies)

  • Stoica, Tiberiu

    (Bucharest Academy of Economic Studies)

Abstract

Most of the research papers revealing the monetary policy transmission mechanism in Romania focused on VAR, Structural VAR or Dynamic Stochastic General Equilibrium (DSGE) models. Our paper brings new empirical evidence regarding the impact of NBR’s monetary policy shocks on the real economy, as we use a factor-augmented vector autoregression (FAVAR). Previous research papers generally showed the impact of a monetary policy shock on the GDP, inflation, the money supply and the exchange rate. Our paper also indicates the effect of a monetary policy shock on other macroeconomic variables regarding different sectors of the economy, labor market and the foreign trade sector.

Suggested Citation

  • Dedu, Vasile & Stoica, Tiberiu, 2014. "The Impact of Monetaru Policy on the Romanian Economy," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(2), pages 71-86, June.
    • Handle: RePEc:rjr:romjef:v::y:2014:i:2:p:71-86
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    File URL: http://www.ipe.ro/rjef/rjef2_14/rjef2_2014p71-86.pdf
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    References listed on IDEAS

    as
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    Cited by:

    1. Bogdan IFTIMIE & Simona-Mihaela CHIRU, 2016. "Macroeconomic Performances Under Inflation Targeting. The Case Of Romania," ECONOMIC COMPUTATION AND ECONOMIC CYBERNETICS STUDIES AND RESEARCH, Faculty of Economic Cybernetics, Statistics and Informatics, vol. 50(3), pages 193-209.

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    More about this item

    Keywords

    monetary policy; Bayesian estimation; FAVAR.;
    All these keywords.

    JEL classification:

    • C11 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Bayesian Analysis: General
    • C3 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables
    • E50 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - General

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