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Author/Editor:
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Berkmen, Pelin ; Gueorguiev, Nikolay
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Publication Date:
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December 01, 2004
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Electronic Access:
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Free Full text
(PDF file size is 990KB).
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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.
The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate
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Summary:
In the near future, Romania will introduce inflation targeting and fully liberalize its capital account. This paper aims to analyze, in a dynamic general-equilibrium model with sticky prices and monopolistic competition, how these two profound changes will affect the ability of monetary policy to pursue its objective of price stability. In particular, the resilience of the current and future monetary policy regimes to shocks is evaluated against two welfare criteria: a standard central bank loss function containing the deviations of inflation, output, and the real exchange rate from their equilibrium values, and the compensating variation measure of Lucas (1987).
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Order a print copy
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Series:
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Working Paper No. 04/232
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Subject(s):
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Inflation targeting | Romania | Monetary policy | Capital account liberalization
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Author's Keyword(s):
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Inflation targeting | Romania | monetary policy | capital account liberalization |
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English
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Publication Date:
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December 01, 2004
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ISBN/ISSN:
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1934-7073
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Format:
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Paper
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Stock No:
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WPIEA2322004
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Pages:
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35
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Price:
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US$15.00 )
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Please address any questions about this title to
publications@imf.org
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