IDEAS home Printed from https://ideas.repec.org/a/scm/ausvfe/v10y2010ispecialp45-54.html
   My bibliography  Save this article

The Disinflation Process In Romania Within The Context Of The European Integration

Author

Listed:
  • Monica DAMIAN

    () (“Alexandru Ioan Cuza” University, Faculty of Economics and Business Administration of Iasi, Romania)

Abstract

The accomplishment of a high rank of stability of prices represents one of the conditions of the euro currency, therefore inflation represents one major problem for the Romanian monetary authorities.Under these conditions to know the factors that lead to inflationary pressure is necessary in taking monetary policy decisions.This paper analyses the inflation process in Romania after 1990.The purpose is to identify the most important causes which have determined the inflation development in our country. Given the evolution of the inflation rate, we study the inflation phenomenon over the period 1990-1999 (the inflation process) and 2000-2009( the desinflation process). Although, in Romania there has been a powerful disinflationary phenomenon, the consumer price has risen very much in the first years of disinflation process. The increase of inflation in the first decade is determinated by the price deregulation, the wage increase which overcome the increase in labour productivity and the Romanian leu currency devaluation compared to US dollar.In order to achieve my objectives for this paper, I have used monthly data from 2000-2009, using the unifactorial model of regression.The results show that inflation in the period 2000-2009 is determined by wage increase, M2 money supply variation, the exchange rate variation and the international oil price.

Suggested Citation

  • Monica DAMIAN, 2010. "The Disinflation Process In Romania Within The Context Of The European Integration," The Annals of the "Stefan cel Mare" University of Suceava. Fascicle of The Faculty of Economics and Public Administration, "Stefan cel Mare" University of Suceava, Romania, Faculty of Economics and Public Administration, vol. 10(Special), pages 45-54, December.
  • Handle: RePEc:scm:ausvfe:v:10:y:2010:i:special:p:45-54
    as

    Download full text from publisher

    File URL: http://www.seap.usv.ro/annals/arhiva/ANNALS%20vol.10,nr.special,2010%20fulltext.pdf
    Download Restriction: no

    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:scm:ausvfe:v:10:y:2010:i:special:p:45-54. 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: (Liviu Scutariu). General contact details of provider: http://edirc.repec.org/data/feusvro.html .

    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.

    We have no references for this item. You can help adding them by using 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.