Theoretical and Applied Economics
No. 1 / 2006 (496)
Limits of Inflation Targeting Strategy
Aura Niculescu
Academia de Studii Economice Bucuresti
Abstract. This paper evaluates the trade-off between output volatility and the variability of the inflation rate around its target (Romanian case). The optimal choice for National Bank of Romania (NBR), in our opinion, is the flexible inflation targeting. For this purpose, NBR must explain the loss function and the optimal monetary policy rule. We then argued that this Romanian authority – NBR – can substantially improve its credibility under inflation targeting policy regime by becoming more accountable and transparent. Is the direct inflation targeting the best choice for the monetary policy regime in Romanian economy?
Keywords: output gap; inflation targeting; monetary policy rule; loss function; credibility.
Download the full article: 
Contents
- Limits of Inflation Targeting Strategy
Cristian Socol
Aura Niculescu
- Measuring the Company Performance
Ion Stancu
- Short-run and Current Analysis Model in Statistics
Constantin Anghelache
Alexandru Isaic-Maniu
Constantin Mitrut
Vergil Voineagu
- The Structural Convergence of the Romanian Economy. Comparative Analysis
Marius-Corneliu Marinas
- „Uthopia – The Castle with Dreams and Hopes”
Dan Popescu
- Testing the Informational Efficiency on the Romanian Financial Market
Bogdan Dima
Marilen Pirtea
Aurora Murgea
- The Knowledge Economy – New Economy?
Niculae Niculescu
- The Evolution of the Romanian Capital Market – Limits and Performances
Gabriela Anghelache
- A New Approach in Rentability and Capital Risk Management
Leonardo Badea
- A New Agenda for Economic Science
Ion Bucur
- Economic Growth Models Transition
Coralia Angelescu
- Challenges in Global Economy
Nicolae Danila
- The Deadlock of Sustainable Development
Mircea Dutu
- The Dichotomy Real – Nominal in Romanian Economy Evolution
Gheorghe H. Popescu
Elvira Nica
