The Analysis Of The Monetary Policy Dynamics In Romania Using A Structural Vector Autoregressive Model

The efficient functioning of the enlarged future euro zone still needs some answers to a set of essential questions. One of these questions is related to the pertinence of the inflation target of 2% established by the European Central Bank (ECB). Indeed, despite of a considerable deceleration of the prices growth rhythm in the Central and Eastern Europe countries after the difficult period of transition, an inflation growth is possible after the euro adoption. According to Benassy-Quere and Lahreche-Revil (2001), this phenomenon could lead to the medium inflation growth of the euro zone of 0.25% and of 0.75%.