EVALUATION OF NATIONAL BANK OF ROMANIA MONETARY POLICY CREDIBILITY

Abstract

In this paper, using the models from the economic literature, the authors study the credibility level of National Bank of Romania (NRB) during the time span Mars 2007 – Mars 2008. We will use three types of credibility indexes - two from the economic literature and one proposed by the authors. Also, we will emphasize the impact of unpredictable shocks - the natural calamities (drought) which affected the aggregate supply in the summer of 2007 and the depreciation of RON against the euro - on the NBR credibility.

Keywords

• In this paper; using the models from the economic literature; the authors study the credibility level of National Bank of Romania (NRB) during the time span Mars 2007 – Mars 2008. We will use three types of credibility indexes - two from the economic lite