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Modelling Anti-inflationary Monetary Targeting in Romania

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  • Marcelo Sanchez

Abstract

This paper characterises Romania's experience with anti-inflationary monetary targeting over the period 1999-2005 prior to the country's switch to inflation targeting. We uncover the National Bank of Romania's preferences, conditional on an estimated macro-model. We find that Romania's monetary targeting regime can be characterised by a concern for price stability and an additional role for smoothing of the central bank's instrument (base money growth). Exchange rate variability and output gap stability appear not to significantly enter the National Bank of Romania's objective function.

Suggested Citation

  • Marcelo Sanchez, 2011. "Modelling Anti-inflationary Monetary Targeting in Romania," International Economic Journal, Taylor & Francis Journals, vol. 25(1), pages 125-145.
  • Handle: RePEc:taf:intecj:v:25:y:2011:i:1:p:125-145 DOI: 10.1080/10168737.2010.487541
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    Cited by:

    1. Tiwari, Aviral Kumar & Mutascu, Mihai & Andries, Alin Marius, 2013. "Decomposing time-frequency relationship between producer price and consumer price indices in Romania through wavelet analysis," Economic Modelling, Elsevier, vol. 31(C), pages 151-159.

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