The fiscal and budgetary policy should play a key role to alleviate the impact of the business cycle on the real economy. Procyclical fiscal policy is particularly undesirable in developing countries, as it not only exacerbates the business cycle, but also the high output volatility hurts the...

The importance of credit risk assessment and monitoring has increased since the recent financial turmoil. This paper presents a toolkit for credit risk modeling that follows the top-down approach proposed by Wilson (1997). The analysis is conducted separately for the household and corporate...

In order to reduce its capital requirement, banks use different credit risk models that are able to detect de difference between defaulter and a non-defaulter customer. In this paper I aim to make a comparison between these models and more to see which ones improve most when a macroeconomic...

In this paper we use a medium scale open economy DSGE model developed by Adolfson et al. (2005). Besides authors’ observables we include also one extra observable series (CPI) in the model. Some of the parameters will be calibrated as to match sample’s mean or common values found in...

In this paper I aimed to analyze the use of copulas in financial application, namely to investigate the assumption of asymmetric dependence and to compute some measures of risk. For this purpose I used a portfolio consisting in four currencies from Central and Eastern Europe. Due to some...

In the next decades, Romania will experience demographic changes that are likely to have a significant impact on its economic development. Using an overlapping generations model in the Auerbach-Kotlikoff tradition, I attempt to assess the effects of the ageing population phenomenon. The driving...

This paper aims to present the theoretical foundation of the sticky information Phillips curve as outlined by Mankiw and Reis (2002) and to investigate the empirical validity of the model on Romanian data following the methodology proposed by Coibion (2010). The analysis is performed in...

Despite the rapid and complex development of the Romanian electronic communications markets after the full sector liberalization in 2003, local literature often evaluates the development of the Romanian markets in a simplistic manner, by solely comparing the penetration of electronic...

The study consisted in collecting financial information for a group of distressed and non-distressed Romanian listed companies during the period 2006–2008, in order to create early warning signals for financial distressed companies using the following methodologies: the Logistic and the Hazard...

The last 20 years have witnessed the financial liberalization of equity markets across the world which have opened the international financing path and resulted in risk diversification, capital cost decreases and investment growth. However, liberalization may have negative effects as well. It...