Evolutions and trends regarding the monetary and fiscal-budgetary policy in Romania

Abstract

The purpose of this paper is to provide a presentation and an analysis of the evolution and trends in monetary and fiscal policy in Romania. There will be a brief presentation of the evolution and objectives of monetary policy as well as the evolution of fiscal-budgetary policy. In order to respond to similar requirements outlined from the perspective of the monetary policy in Romania, this paper aims to expand the area of information that monetary analysis can provide in the current context of the Romanian economy. At the same time, the analysis, the indicators regarding the fiscal-budgetary policy (expenditures, revenues, and the budget deficit), as well as the indicators of the monetary policy (inflation rate, exchange rate and public debt) in Romania during 2014-2020 are presented. Much of the economic theory as well as recent practice of central banks assigns to currency and monetary analysis an important role in the formulation of monetary policy. It follows from the relevance of the information provided to the central bank by a comprehensive monetary analysis- in which the results generated by statistical and econometric techniques are complemented by expert judgment- the most significant being information on price developments, risks to disinflation / price stability, as well as the dynamics of economic growth.