Monetary policy should be guided by macroeconomic models with limited nominal rigidity – ‘New Classical’ or even for some issues just plain Classical (i.e. with no nominal rigidity at all) models are perfectly adequate for understanding various aspects of the economy that have previously...

The monetary policy decision, as any other decision, is the product of a procedure assembling a lot of primary information, but also what type of other ingredients contribute finally to a certain monetary policy decision.

The purpose of the paper is to present an efficient instrument for simulation and research of inflation and its determinants in Romania, with a focus on the short-term impact of changes in money, foreign exchange and wage policies and controlled prices as well as the impact of external shocks as...