Nonmonetary Determinants of Inflation in Romania: A Decomposition

Arbeitspapier

Why is inflation, 15 years after transition started, still considerably higher in Romania than in the eight EU member states (EU-8) that joined in May 2004? Panel estimation based on ten central and eastern European countries allows us to decompose the inflation differential between Romania and the EU-8. The decomposition suggests that neither the revenue, nor the balance of payments, nor the financial stability motive are driving inflation; rather structural differences are at play. The employment motive, together with indicators reflecting the prolonged structural change, explain most of the inflation gap vis-?-vis the EU-8.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Kiel Working Paper ; No. 1322

Classification and Topics

• Classification: Wirtschaft ; Central Banks and Their Policies
• Subject: inflation ; panel data ; transition economics ; Inflationsrate ; Inflation ; Übergangswirtschaft ; Strukturwandel ; Dekompositionsverfahren ; Schätzung ; Rumänien

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Hammermann, Felix
• Event: Veröffentlichung
• (who): Kiel Institute for the World Economy (IfW)
• (where): Kiel
• (when): 2007

Further information

• Handle: http://hdl.handle.net/10419/17843
• Last update: 10.03.2025, 11:44 AM CET