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Romania: From the quantitative monetary aggregates to inflation targeting


  • Voicu, Ionut Cristian
  • Constantin, Floricel


For Romania, the shift from monetary targeting toward inflation targeting was done under the influences of following events: - The existing pressure coming from refinancing the public debt and from the necessity to remain in certain boundary with the budgetary deficit. - NBR assigned monetary control and liquidity management functions on the mechanism of minimum required reserves. - Romanian strategy was deeply hurt by the low development of its financial markets, and the low level of monetization. - A precondition of potential success in the case of inflation targeting was fulfilled - the improvement of taxes collection and the reduction of money laundry. - The important amounts of quantitative increases in Foreign Direct Investment (yearly Euro 4 billion), and also in the rest of M2’s components, forced the necessity of a new strategy based mainly on non-monetary aggregates

Suggested Citation

  • Voicu, Ionut Cristian & Constantin, Floricel, 2006. "Romania: From the quantitative monetary aggregates to inflation targeting," MPRA Paper 396, University Library of Munich, Germany, revised Sep 2006.
  • Handle: RePEc:pra:mprapa:396

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    References listed on IDEAS

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    More about this item


    monetary policy; inflation targeting; Romania; monetary aggregates;

    JEL classification:

    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies

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