Skip to main navigation Skip to main content Skip to page footer
WWT3 Sitepackage WWT3 Sitepackage

Working Paper

Nonmonetary Determinants of Inflation in Romania: A Decomposition

Kiel Working Papers, 1322

Authors

  • Hammermann
  • F.

Publication Date

JEL Classification

E58

Key Words

Inflation

Panel data

transition economics

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-à-vis the EU-8.

More Publications

Subject Dossiers

  • Production site fully automatic with robot arms

    © xieyuliang – iStockphoto

    Economic Outlook

  • Inside shoot of the cupola of the Reichstag, the building of the German Bundestag.

    © Erik Cleves Kristensen CC BY 2.0

    Economic Policy in Germany

  • Colorful flags of European countires in front of an official EU building.

    © European Union 2016, Source EP

    Tension within the European Union

Research Center

  • Macroeconomics

Cookie Extension Logo