The problem of pricing derivative financial products is central to the theory of capital markets. An option is a financial contract conveying its owner the right of buying or selling a financial asset (underlying asset) at a preset strike price K, at a fixed expiration date T (maturity). Unlike...

The paper provides potential output and output gap estimates for the Romanian economy in the period 1998 - 2008. Our approach consists in combining the structural method of the production function with several non-structural statistical detrending methods: Hodrick-Prescott, Kalman, band-pass,...

This paper dwells upon the contingent claims analysis (CCA) framework in order to quantify the risk of financial distress at the level of the sectors of economy (banking, sovereign and corporate sector). After the CCA risk indicators have been obtained for the three analyzed sectors, a global...

The paper presents some results revealing the existence of the Balassa-Samuelson effect in Romania as well as some estimates of its impact on inflation, appreciation of the real exchange rate and rising competitiveness of the Romanian economy. * Study published in PAIS III; Studiul nr. 2/2005;...

Equilibrium real exchange rate provides useful information on the harmonisation of convergence criteria with exchange rate stability criteria; a requirement for accession to the European Monetary Union. This study applies econometric procedures for identifying the equilibrium real exchange rate...

The paper presents some results revealing the existence of the Balassa-Samuelson effect in Romania as well as some estimates of its impact on inflation, appreciation of the real exchange rate and rising competitiveness of the Romanian economy. * Study within the CEEX Programme – Project No....

Real Gross Domestic Product is usually computed at quarterly intervals, which makes it uncomfortable to introduce into different types of macroeconomic models, that usually make use of higher frequency data (monthly, weekly) such as inflation, interest and unemployment. Analysts and decision...

The impact of trade and financial openness can be measured by the sensitivity of the first moment of the economic growth. Taking into account the domestic conditions, this paper provides an empirical evaluation of the impact of globalization on the economic growth in the Eastern Europe. The data...

The fundamental purpose of this paper is to unravel the way price discovery works in the Romanian markets and at the same time explain its most obvious mechanisms. This is an aid for traders that use both markets (cash and futures) but at the same time it is a relevant input when trying to...