MONETARY STABILITY AND UNEMPLYMENT IN AN EMERGING ECONOMY. THE CASE OF ROMANIA

A typical feature of an economic crisis, as is the case of the last economic and financial crisis, is the rise in the unemployment. This phenomenon represents one of the most serious aspects of an economic recession implying additional constraints for the policy makers and increased social and economic distress. In this paper we approach the issue of unemployment dynamics for Romanian economy. Modern economies must cope with the challenge of achieving financial stability, given that the globalizing financial environment is becoming more complex due to globalization, to theintersection of the monetary and financial market, and to the financial industry innovativeness. Although this evolution of the markets encourages more efficient allocation of global capital resources, allowing the ways of financing to adapt more quickly to the needs of the real economy, a€ the financial sector is not exempt from tensions and destabilizing movements, which generate risks not only for the players of the financial sector, but also for the economy as a wholea€ .