{
  "title": "Macroeconomic Implications of the Transition to Inflation Targeting and Capital Account Liberalization in Romania",
  "publication": "IMF Working Papers, December 1, 2004",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2016/12/31/macroeconomic-implications-of-the-transition-to-inflation-targeting-and-capital-account-17848",
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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 pu",
  "sections": [
    {
      "heading": "Authors and Publication",
      "content": "- By Nikolay Gueorguiev, Pelin Berkmen\n- December 1, 2004\n- IMF Working Papers, Working Paper No. 2004/232\n- Issue: 232\n- Volume: 2004\n- Pages: 35\n- DOI: https://doi.org/10.5089/9781451875591.001\n- ISBN: 9781451875591\n- ISSN: 1018-5941\n- Stock No: WPIEA2322004"
    },
    {
      "heading": "Research Objective and Model",
      "content": "- Objective:\n  - Analyze how the introduction of inflation targeting and full liberalization of the capital account in Romania will affect the ability of monetary policy to pursue price stability.\n- Model framework:\n  - Dynamic general-equilibrium model with sticky prices and monopolistic competition.\n- Comparative evaluation:\n  - Resilience of current and future monetary policy regimes to shocks is evaluated."
    },
    {
      "heading": "Welfare Criteria Used",
      "content": "- Standard central bank loss function containing the deviations of:\n  - inflation,\n  - output,\n  - the real exchange rate\n  from their equilibrium values.\n- Compensating variation measure of Lucas (1987)."
    },
    {
      "heading": "Key Topics and Subjects",
      "content": "- Capital controls\n- Consumption\n- Exchange rates\n- Inflation\n- Real exchange rates"
    },
    {
      "heading": "Keywords",
      "content": "- exchange rate\n- inflation targeting\n- interest rate\n- WP"
    },
    {
      "heading": "Main Analytical Focus and Implications (as described in the paper)",
      "content": "- Examine interactions between:\n  - transitioning to an inflation-targeting regime, and\n  - full capital account liberalization.\n- Evaluate policy resilience to shocks within the modeled environment (sticky prices, monopolistic competition).\n- Use of two welfare metrics to assess monetary policy performance under alternative regimes.\n\nSource: IMF Working Paper \"Macroeconomic Implications of the Transition to Inflation Targeting and Capital Account Liberalization in Romania\" by Nikolay Gueorguiev and Pelin Berkmen, December 1, 2004.\n\n---\n\n Content in this bundle\n\n- wp04232\n  - wp04232 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - wp04232 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/macroeconomic-implications-of-the-transition-to-inflation-targeting-and-capital-account-17848"
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    "Authors: Nikolay Gueorguiev, Pelin Berkmen",
    "Published: December 1, 2004",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781451875591.001",
    "By Nikolay Gueorguiev, Pelin Berkmen",
    "December 1, 2004",
    "IMF Working Papers, Working Paper No. 2004/232",
    "Issue: 232",
    "Volume: 2004",
    "Pages: 35",
    "DOI: https://doi.org/10.5089/9781451875591.001",
    "ISBN: 9781451875591",
    "ISSN: 1018-5941",
    "Stock No: WPIEA2322004",
    "Objective:",
    "Model framework:",
    "Comparative evaluation:",
    "Standard central bank loss function containing the deviations of:",
    "Compensating variation measure of Lucas (1987).",
    "Capital controls",
    "Consumption",
    "Exchange rates",
    "Inflation",
    "Real exchange rates",
    "exchange rate",
    "inflation targeting",
    "interest rate",
    "WP",
    "Examine interactions between:",
    "Evaluate policy resilience to shocks within the modeled environment (sticky prices, monopolistic competition).",
    "Use of two welfare metrics to assess monetary policy performance under alternative regimes.",
    "**_wp04232**"
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