NBR MONETARY POLICY INTEREST RATE: DETERMINANTS AND OPTIMUM LEVEL

Gabriel Bistriceanu
Additional contact information
Gabriel Bistriceanu: Academy of Economic Studies, Bucharest

Theoretical and Applied Economics, 2008, vol. 11(528)(supplement), issue 11(528)(supplement), 268-275

Abstract: In this paper, we analised the possibility to establish the optimum level of NBR monetary policy interest rate. We specified the economic determinants of the monetary policy interest rate, and then we realised an empiric estimation of the NBR reaction function. There are some economic indicators (speculative capital inflows, for example) for wich it is difficult to make an empirical analysis. Other central bank interest rate determinants may be used as exogenous variables to estimate a central bank interest rate equation. The result of our empiric analysis is that NBR monetary policy rate is a function having the following arguments: inflation target +3.5 percentage points and 1.3*GDP gap.

Keywords: monetary policy rules; central bank interest rate; inflation target; reaction function, GDP gap. (search for similar items in EconPapers)
Date: 2008
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.asociatiaeconomistilor.ro/documente/Conferinta_FABBV_engleza.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:agr:journl:v:11(528)(supplement):y:2008:i:11(528)(supplement):p:268-275

Access Statistics for this article

Theoretical and Applied Economics is currently edited by Mircea Dinu

More articles in Theoretical and Applied Economics from Asociatia Generala a Economistilor din Romania / Editura Economica Contact information at EDIRC.
Bibliographic data for series maintained by Mircea Dinu ().