Analysis of Foreign Imbalances and Exchange Rate Policy in the Romanian Economy

Cornelia Scutaru, Marioara Iordan, Cristian Stanica () and Bianca Pauna

Journal for Economic Forecasting, 2006, vol. 3, issue 4, 38-54

Abstract: Considering the previous year's results, the paper re-addresses the issue of inflationary shocks dynamics and the dynamics of the foreign imbalance - induced shocks. The ideea of a correlation between the foreign imbalances and the output gap was first introduced by Acad. Emilian Dobrescu (2004) and provides an answer to certain behaviors specific to the Romanian transition economy. The paper presents an econometric analysis of the foreign imbalances and exchange rate policies, on the basis of certain short-term error-correcting econometric models (mothly data series) that reveal the correlations between the output gap and the foreign and exchange rate imbalances, the adjustment speed to the long-term balance, as well as the reaction towards the stability condition. At this stage, the previous year's results are used .

Keywords: foreign imbalances, output gap, exchange rate policy (search for similar items in EconPapers)
JEL-codes: C32 F31 F32 (search for similar items in EconPapers)
Date: 2006
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.ipe.ro/rjef/rjef4_06/rjef4_06_3.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:rjr:romjef:v:3:y:2006:i:4:p:38-54

Access Statistics for this article

Journal for Economic Forecasting is currently edited by Lucian Liviu Albu and Corina Saman

More articles in Journal for Economic Forecasting from Institute for Economic Forecasting Contact information at EDIRC.
Bibliographic data for series maintained by Corina Saman ( this e-mail address is bad, please contact ).