This paper studies the nonlinearity of the Phillips Curve and its implications for monetary policy. To investigate the trade-off between output gap and inflation volatility we used a backward-looking model type. The data for our empirical analysis is obtained from the Area Wide Model (AWM)...

As a result of joining the global trend of the monetary policy modernization, Romania has adopted the inflation targeting strategy in August 2005. Although the implementation conditions have been prepared in advance on the background of a medium-term disinflation process, the National Bank of...