IMF Staff Country Reports

Romania: Selected Issues

Publication Date:

June 25, 2007

Electronic Access:

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Summary:

This Selected Issues paper discusses Romania’s modeling monetary policy. A simple Forecasting and Policy Analysis System (FPAS) for Romania has been designed to help in the preparation of the IMF staff’s forecasts and policy assessments. A major advantage of this approach is that it allows the systematic and rapid analysis of different policy options. The model embodies the key principle that, in an inflation-targeting framework, the role of monetary policy is to provide an anchor for inflation and inflation expectations. The development and calibration of this model is an ongoing process.

Series:

Country Report No. 2007/220

Subject:

Expenditure Inflation Labor Pension spending Prices Public sector wages Wage adjustments Wages