Theoretical and Applied Economics
No. 2 / 2015 (603), Summer
A study of the impossible trinity in Romania
Bucharest University of Economic Studies, Romania
Abstract. Using a VECM and a Taylor type rule it was shown that the central bank kept the autonomy of the monetary policy as the policy rate was modeled primarily based on the evolution of the inflation rate. Forgoing the exchange rate stability is not possible due to the large volume of foreign currency loans and also to other factors. The inclusion in the central bank’s objective function of a variable linked to the exchange rate may cause a conflict between inflation targeting and exchange rate management. Therefore, the best approach seems to be the use, in addition to the policy rate instrument, also of FX interventions. As for the liberalization of capital flows, the decision is at least questionable, given that, on one hand, foreign capital ended up holding a significant share in the economic activity and on the other, the macroprudential measures that authorities began to implement might have limited effects.
Contents
Instruments and practices concerning the absorption and use of structural and cohesion funds in Romania
Foreign direct investment and income inequality in Central and Eastern Europe
Exports – trends and impacts on Romania’s economic growth process
Innovation and regional performance in Romania
A multidisciplinary approach of communication
The issue of “true” money in front of the BitCoin's offensive
Public choice and the social beneficiary
Stock market – economy growth nexus in an emerging country. The case of Romania
Determinants of savings in the APEC countries
The status of Romanian agriculture and some measures to take
Education and society: an institutional approach
Financial audit – feckless for economic re-launch
Empirical evidence on the Ricardian equivalence in Romania
Minimum wage – labour market rigidity factor
Regional convergence. Case of Romania
The exchange rate volatility in the Central and Eastern European Countries
A study of the impossible trinity in Romania
Governance process improvement and development by audit consolitation
Analysis of the evolution of foreign direct investment in the European Union, amid the global economic crisis
Types of international cooperation at the local level Bucharest city hall case study
Short-run determinants of the USD/PLN exchange rate and policy implications
The use of behavioral economics in promoting public policy
New paradigms imposed by the global financial crisis
Are financial audit elements and corporate governance policies solutions for the economic crisis?
The kids are alright? A note on parental satisfaction in Germany
Technological revolution, labor markets and income distribution in the knowledge economy
The effects of competition regulations on mobile telecommunication markets
National convergence policy in education. Case study Romania