The Impact Of Monetary Instruments For The Evolution Of Economic Growth And Price Stability Of Romanian Market

Our approach to the research – the results of which are presented in this paper – is based on the assumption that the relation berween the money base and inflation was severely uncorrelated due to the development of technology and the creation of esoteric financial instruments. Since inflation is the key objective of the strategy pursued by the National Bank of Romania, we intend to find out if the monetisation level of tanhe economy still is one of the factors causing inflation. Moreover, we consider the correlation between economic growth and inflation, a question endlessly discussed by academic circles after the crises. By means of an econometric analysis we define some relations of causality among variables to see whether monetary variables influence the evolution of the GDP or vice versa.