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The Monetary Authorithy And Electoral Cycle In Romania, At A Glance

Author

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  • CRISTE, Adina

    (“Victor Slăvescu” Centre for Financial and Monetary Research, Romanian Academy)

Abstract

One of the characteristics that define the monetary authority governance is the independence from the political sphere, and it is established worldwide since the 1980s, after the Bundesbank success in containing inflation, success that was assigned to its quality of an independent central bank. In this article we try to illustrate the development of the central bank independence against the political field, considering also the inflation development, since the beginning of the transition period, in Romania. The objective formulated in this article is part of a broader one, dealing with the relationship between the electoral cycle and the financial policies. The analysis showed that in Romania the relationship between electoral cycles and the conduct of the National Bank of Romania (NBR) is shown through the intervention of the monetary authority for the purposes of correcting the tendencies of a presumptive procyclical fiscal policy, given not only the limits imposed by the NBR Statute, but the desire to avoid the risk of impairing the credibility of this institution by engaging in politics.

Suggested Citation

  • CRISTE, Adina, 2016. "The Monetary Authorithy And Electoral Cycle In Romania, At A Glance," Studii Financiare (Financial Studies), Centre of Financial and Monetary Research "Victor Slavescu", vol. 20(2), pages 55-64.
    • Handle: RePEc:vls:finstu:v:20:y:2016:i:2:p:70-78
    as

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    References listed on IDEAS

    as
    1. Barro, Robert J. & Gordon, David B., 1983. "Rules, discretion and reputation in a model of monetary policy," Journal of Monetary Economics, Elsevier, vol. 12(1), pages 101-121.
    2. N. Nergiz Dincer & Barry Eichengreen, 2014. "Central Bank Transparency and Independence: Updates and New Measures," International Journal of Central Banking, International Journal of Central Banking, vol. 10(1), pages 189-259, March.
    3. Alesina, Alberto & Summers, Lawrence H, 1993. "Central Bank Independence and Macroeconomic Performance: Some Comparative Evidence," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 25(2), pages 151-162, May.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    central bank independence; inflation; National Bank of Romania; elections;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • 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

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