%0 Journal Article
%T GRANGER CAUSALITY AND COINTEGRATION IN ROMANIAa? S INFLATIONARY DYNAMICS a?¡° AN EMPIRICAL STUDY
%A Mester Ioana Teodora
%A Simu£¿ Ramona
%J Annals of the University of Oradea : Economic Science
%D 2010
%I University of Oradea
%X One of the most difficult issues that monetary authorities in many developing economies have to deal with is the management of a stable price environment. Inflation can create uncertainty, a low level of investment, and raise costs in general, thus lowering rates of growth. As a result, there exists a widespread need for understanding inflationary dynamics in any country of interest, especially in developing countries, subject to more significant and volatile price changes. This paper develops a VEC model for the Romanian economy, using CPI index and other macroeconomic data, in order to capture the transmission mechanism of inflation.
%K inflation forecasting
%K monetary policy
%K developing countries
%K Romania
%K VAR model
%U http://anale.steconomiceuoradea.ro/volume/2010/n1/042.pdf