The growth of connections between national economies has generated a consolidation of foreign currency activities, requiring a continuous adjusting regime, both for the foreign currency policy and for the exchange rate to the market mechanisms. In Romania, there have been frequent alterations of...

This paper evaluates the trade-off between output volatility and the variability of the inflation rate around its target (Romanian case). The optimal choice for National Bank of Romania (NBR), in our opinion, is the flexible inflation targeting. For this purpose, NBR must explain the loss...