COMPLEXITATEA FENOMENULUI INFLATIONIST ÎN ROMÂNIA
                 SI IMPLICATIILE ACESTUIA /
  THE COMPLEXITY OF INFLATIONARY PHENOMENON IN ROMANIA
                    AND ITS IMPLICATIONS

Lector univ. drd. Ioana Duca, Universitatea Titu Maiorescu Bucuresti, ducaioana@yahoo.com
Lector univ. dr. Constantin Stoica, Academia Nationala de Informatii Bucuresti

Abstract:
Inflation is the main imbalance factor that Romanian economy faced during the last 16 years.
Despite the positive evolution in the near past, this country is still the one with the highest
inflation level among the countries in transition period. The main reasons for this delay are: the
fitful and protracted price’s liberalization, the slow progress in privatization, the stop-and-go
stabilization efforts and the relatively late start of National Bank in the strategy of competitive
disinflation. Starting from August 2005, the National Bank of Romania (NBR) introduced the
strategy of inflation targeting, which implies: the public announcement of a quantitative inflation
target; the price stability being set as main goal of the monetary policy; a wide set of good
macroeconomic data; the technical capacity of NBR to forecast inflation and an increased level of
transparency. This strategy will be applied in Romania until the ERM II, because the NBR has
considered inflation targeting to be the most appropriate medium term monetary policy
framework.

Keywords: inflation, inflation targeting, monetary policy

JEL codes: E52, E31