Does the Inflation Targeting Have a Positive Role upon the Convergence of the Inflation Rate? 

by PELINESCU, Elena and Petre CARAIANI
Published in Romanian Journal of Economic Forecasting, volume 7 issue 3, 2006.

 Requires a PDF viewer such as Xpdf or Adobe Acrobat Reader


This article asks whether the monetary regime of inflation targeting that Romania chose is favorable to the inflation convergence with the EU. We analyze a few of the standard models of inflation convergence and apply some of them for the case of Romania. We also use the experience of the other CEE countries to derive lessons for the inflation targeting policy and the convergence process of Romania. We find that the inflation targeting regime supports the inflation convergence and generally the nominal convergence with EU.

Keywords: Inflation Targeting, Nominal Convergence, Maastricht Criteria
JEL Classification: E52, E31