The disinflation process in Romania
- Romania has started the reform processes from a far less advantageous position as compared to the situation of the other countries that accessed into the EU in the first wave, due to its serious structural problems, unsolved until 1989 and delayed after this date too, a fact that diminished the efficiency of the macrostabilization measures comprised in the FMI programmes;
- The functioning of the arrears as a currency substitute and the adverse selection made the monetary policies inefficient in combating inflation at the beginning of transition;
- After 1998, we can also talk in Romania about a gradual disinflation process, which has avoided a series of disadvantages but involved a slow process of credibility rebuilding;
- When making the choice of the pace of disinflation were considered: the risk of dollarizing the economy, the cost for the real economy, the preservation of administred prices and assurance of conditions favourable to competitiveness.