THE IMPACT OF INFLATION EXPECTATIONS ON TRANSYLVANIAN SMES’ ACTIVITY

Valentin Toader and Rozalia Veronica Rus ()
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Rozalia Veronica Rus: Faculty of Business, Babes-Bolyai University, Cluj-Napoca, Romania

JOURNAL STUDIA UNIVERSITATIS BABES-BOLYAI NEGOTIA, 2007

Abstract: Due to its negative effects on economy, across the time, the inflation process always represented a problem of actuality, in the economic debates. Among all of the inflation’s social costs, the effects on the companies’ activity will represent the main aspect of our research: the rise of production costs and the reduction of real incomes. The economic experience showed us that the inflation level depends in a great measure on the economic agents’ expectations about the evolution of inflation in the future. Because inflation’s evolution influences their activity’s results, the economic agents pay more attention on the inflation’s evolution and try to anticipate its future evolution in order to avoid possible losses. Consequently, in this paper we will emphasize the inflation expectation influence on the Transylvanian small and medium sized companies’ activity. We will study the impact of the inflation expectations on the wages paid to the employees, on the production costs and on the products’ prices. The information necessary for this research will be collected using a questionnaire. The survey will be applied on a group of companies, randomly selected. In order to draw up our conclusions, the gathered data will be processed using statistical methods and procedures.

Keywords: inflation; inflation expectations; wage; cost; price (search for similar items in EconPapers)
JEL-codes: E31 E37 (search for similar items in EconPapers)
Date: 2007
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