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Does the Inflation Targeting Have a Positive Role upon the Convergence of the Inflation Rate?

Author

Listed:
  • Pelinescu, Elena

    (Institute for Economic Forecasting, Bucharest.)

  • Caraiani, Petre

    (Institute for Economic Forecasting, Bucharest)

Abstract

This article asks whether the monetary regime of inflation targeting that Romania chose is favorable to the inflation convergence with the EU. We analyze a few of the standard models of inflation convergence and apply some of them for the case of Romania. We also use the experience of the other CEE countries to derive lessons for the inflation targeting policy and the convergence process of Romania. We find that the inflation targeting regime supports the inflation convergence and generally the nominal convergence with EU.

Suggested Citation

  • Pelinescu, Elena & Caraiani, Petre, 2006. "Does the Inflation Targeting Have a Positive Role upon the Convergence of the Inflation Rate?," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 3(3), pages 39-50, September.
    • Handle: RePEc:rjr:romjef:v:3:y:2006:i:3:p:39-50
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    References listed on IDEAS

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    Cited by:

    1. Nikolay Nenovsky, 2010. "Monetary Regimes In Post-Communist Countries Some Long-Term Reflections," Analele Stiintifice ale Universitatii "Alexandru Ioan Cuza" din Iasi - Stiinte Economice (1954-2015), Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, vol. 57, pages 217-234, november.
    2. Dejan Zivkov & Slavica Manic & Jasmina Duraskovic & Jelena Kovacevic, 2019. "Bidirectional Nexus between Inflation and Inflation Uncertainty in the Asian Emerging Markets – The GARCH-in-Mean Approach," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 69(6), pages 580-599, December.
    3. Paun, Cristian & Topan, Vladimir, 2013. "The Monetary Causes of Inflation in Romania," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(1), pages 5-23, March.
    4. Monica DAMIAN, 2011. "Evaluation of optimal monetary policy strategy in Romania in the context of fulfilment of convergence criteria," Romanian Journal of Economics, Institute of National Economy, vol. 33(2(42)), pages 146-168, December.

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    More about this item

    Keywords

    Inflation Targeting; Nominal Convergence; Maastricht Criteria.;
    All these keywords.

    JEL classification:

    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation

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