Romania has to decide: with or without monetary policy

Romania has never embraced Inflation Targeting whole heartedly. It is not just the inflation outcome that says that it is also the design of the policy. The NBR has gone out of the way to create a list of reasons for why inflation target could not be achieved. Even more, the NBR research and that of few local economists has gone to great length to show that due to an unobservable but somehow measurable effect, the Ballassa-Samuelson, inflation could not fall below some certain level and the disinflation process would be long and arduous. I spoke about those here and here.
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