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Inflation Inertia and Inflation Persistence in Romania Using a DSGE Approach
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Author(s):
Cristi Spulbar
(University of Craiova, Romania)and
Ramona Birau
(Constantin Brâncuși University of Targu Jiu, Romania)
Copyright:
2023
Pages:
11
Source title:
Research Anthology on Macroeconomics and the Achievement of Global Stability
Source Author(s)/Editor(s):
Information Resources Management Association
(USA)
DOI:
10.4018/978-1-6684-7460-0.ch057
Keywords:
Business & Management
/
Business Science Reference
/
Economics & Economic Theory
/
Economics and Economic Theory
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Inflation Inertia and Inflation Persistence in Romania Using a DSGE Approach
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Abstract
The main purpose of this chapter is to investigate monetary policy dynamics, as well as the inflation inertia and inflation persistence in Romania using a DSGE approach. The empirical findings revealed that the price evolution reflects the difficulties of eliminating the inflation inertia. Moreover, in Romania, the historic inflation evolution has a significant influence in terms of inflation expectation patterns. Inflation is a negative phenomenon with dramatic consequences for Romania's economic development on long term.
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