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Macroeconomic Performances Under Inflation Targeting. The Case Of Romania

Author

Listed:
  • Bogdan IFTIMIE

    (Department of Applied Mathematics, The Bucharest University of Economic Studies)

  • Simona-Mihaela CHIRU

    (Faculty of Finance, Insurance, Banking and Stock Exchange, The Bucharest University of Economic Studies)

Abstract

This paper aims to analyze the macroeconomic performance of inflation targeting in terms of inflation, output, exchange rates and interest rates behaviour, as well as their volatilities. The study gives an overview of inflation targeting features with focus on Romanian experience. Using econometric models and statistical analysis we highlight several indicators before and after inflation targeting adoption and discuss the performance of the new regime. Another paper’s goal is to evaluate the performance of the monetary policy strategy in terms of transmission mechanism of the monetary policy impulses. With other words, as the monetary policy interest rate is the most important instrument used currently, we aim to measure the performance of inflation targeting regime on inflation by studying the characteristics of interest rate transmission mechanism on inflation. In order to do this, we use the VAR technique, assessing the monetary policy interest rate transmission mechanism. Our paper brings new empirical evidence.

Suggested Citation

  • 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.
    • Handle: RePEc:cys:ecocyb:v:50:y:2016:i:3:p:193-209
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    inflation targeting; transmission mechanism; economic performance; monetary policy; monetary policy strategy; central banks; inflation.;
    All these keywords.

    JEL classification:

    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • C87 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Econometric Software
    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation

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