Subduing High Inflation in Romania. How to Better Monetary and Exchange Rate Mechanisms?

33 Pages Posted: 16 Nov 2003

See all articles by Daniel Daianu

Daniel Daianu

University of Bucharest

Radu Vranceanu

ESSEC Business School; University of Cergy-Pontoise - THEMA

Date Written: August 2001

Abstract

Romania's overall economic performance during the first ten years of transition can be termed so far as disappointing: the country has not been able to deliver steady growth, low unemployment and low inflation. This paper focuses on the effectiveness of monetary mechanisms and policies during this period. Special emphasis is set on the exchange rate mechanism. The first part of the text develops a short introduction to relevant monetary theory in the transition context. In the second part, we analyse the stylised facts pertaining to Romanian economy and put forward some weaknesses of its banking system and monetary policies. The conclusion presents a set of recommendations for a reform of the going monetary policy.

Keywords: Monetary policy, Banking system, Exchange rate mechanism, Romania, Policy reform

Suggested Citation

Daianu, Daniel and Vranceanu, Radu, Subduing High Inflation in Romania. How to Better Monetary and Exchange Rate Mechanisms? (August 2001). Available at SSRN: https://ssrn.com/abstract=299941 or http://dx.doi.org/10.2139/ssrn.299941

Daniel Daianu (Contact Author)

University of Bucharest ( email )

14 Academiei St.
Bucharest, Bucuresti 70109
Romania

Radu Vranceanu

ESSEC Business School ( email )

3, Av. Bernard Hirsch
PB 50105
Cergy-Pontoise, 95021
France

HOME PAGE: http://www.essec.fr

University of Cergy-Pontoise - THEMA ( email )

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