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Theoretical and Applied Economics
No. 3 / 2022 (632), Autumn

Fiscal and monetary policy effects on economic growth in Romania (1990-2020)

Ismail AMANI
University of Oran 2 Mohamed ben Ahmed, Algeria
Brahim BOUYACOUB
University of Oran 2 Mohamed ben Ahmed, Algeria

Abstract. This research paper aims to assess the impact of both fiscal and monetary policy on economic growth in Romania. Hence, an empirical model elaborated and estimated by ARDL method covering a period between 1990 and 2020. Results show that fiscal policy has a significant positive impact on growth in both short and long run while monetary policy has a positive impact on economic growth only in short term. To notice a negative impact of inflation in both short and long term enhancing the role of monetary policy.

Keywords: fiscal, monetary, ARDL, growth, Romania.

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The Economicity. The Epistemic Landscape, Marin Dinu, 2016

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