Elena Pelinescu and
Andrei Silviu Dospinescu ()
Additional contact information Andrei Silviu Dospinescu: Institute for Economic Forecasting, Romanian Academy, Bucharest
Abstract:
This paper is organized in two parts, an overview of the evolution of inflation, highlighting the factors that influenced the persistent inflation in Romania, and a VAR model for the impulse analyses. The purpose of the paper is to present an efficient instrument for simulating and researching the short-term impact of the changes in money, foreign exchange and the impact of external shocks (such as international price of oil) on the development of inflation.