Monetary Policy and Education: Determinants of Economic Inequality in Romania

This paper analyzes the relationship between economic policies, education, and economic inequality in Romania, aiming to understand how fiscal and monetary policies influence the education system and contribute to the perpetuation of social inequality. The research uses a regression model to examine the effects of education spending, inflation, interest rates, and salaries on the school dropout rate. It also investigates how education levels impact average income per capita and quality of life. The results suggest that government investments in education have a positive impact on reducing school dropout rates, while inflation and high interest rates tend to increase the dropout rate, particularly in the country’s poorer regions. Additionally, a higher level of education is positively correlated with higher income and better quality of life. These findings highlight the need for coordinated economic and educational policies that address both educational issues and economic inequalities, in order to promote fair social and economic development in Romania. In conclusion, the study emphasizes the importance of investing in education to reduce economic inequalities and improve quality of life, recommending measures such as supporting education in disadvantaged regions and implementing fiscal and monetary policies that promote equitable access to education.