Efficiency and limits of monetary policy in the financial instability. Romania's case

In this article we propose ourselves to highlight the impact that the measures of monetary policy have on the general economic mechanism. The purpose of this approach is to confirm, on the one hand, the efficiency of the monetary policy, and on the other hand to highlight its limits in the context of the current spread of the global crisis to the national economies. One of the current problems of the monetary authorities is to use monetary policy instruments so as to provide the liquidity needed for the economic reconstruction and growth. In the case of Romania, however, we draw attention to some problems due to the contradictions between the intermediate objectives of monetary policy. Thus, using the credit channel in order to increase financing resources, the National Bank of Romania diminished the minimum reserve requirements. The reaction of the banking system was unexpected. Credits increased at least two times more than in the countries of the region.financial instability, monetary policy strategies, financial crisis

INFLATION INFLUENCE ABOUT INVESTMENT DECISION

In this article, we are dealing with an issue very important as regards theinvestment decision, namely the influence that it has on inflation. Thus, in a brief introductionspotlighted how we have perceived inflation today, what it means and how it manifests itself.An ample space in the paper is dedicated manner of determining the net present value in thepresence of inflation, with an emphasis on the link between the real interest rate, the nominalinterest rate and the inflation rate. To be convincing in our approach we introduced in thelast part of the paper a case study in which we showed how affects inflation on investmentdecisions, in practical way.investment, decision, inflation, cash flow

Specificities of using the cost-benefit analysis for public projects financed by the structural funds

Cost-benefit analysis is a major step in carrying out a feasibility study, as it allows for expressing an opinion on the economic and social value of the project as well as for a ranking according to their potential to create or increase net social benefits. Among the weaknesses of this type of analysis, we might mention that its applicability is quite limited in terms of social policies, it requires a high level of practical experience and the capacity of risk event handling, especially for projects that produce particularly long-term intangible qualitative benefits. Overall, one may conclude that the cost-benefit analysis is much more than a simple exercise in algebra, requiring the capacity to master various techniques to allow for estimates in the medium and long run.cost-benefit analysis, public projects, structural funds

Financial stability - coordinate of contemporary monetary policy

In this article we propose to review some aspects of the relationship between price stability and financial stability in the current economic context. It is acknowledged that monetary policy of the EUROSYSTEM still have as the main objective the price stability, this being one of the most important ways of supporting sustainable economic growth. Although there are many theoretical approaches of the price stability concept all converging towards the idea of measuring and control of permanent inflation. Financial stability can be seen in the broad sense as the situation in which the financial system may ensure the efficient allocation of savings to investment opportunities and may face the shock without major disruptions. Viewed from this perspective the increased complementarity between price stability and financial stability is associated with economic globalization and, in particular, eliminating impediments to the free movement of capital flows. On the other hand the financial stability may be defined as a situation characterized by the absence of banking crises and by the existence of a certain level of price stability of the assets, including interest rates.financial stability, price stability, monetary policy, globalization, economic growth

Some considerations of the main determining variables in the models used to estimate inflation

In this paper we intend to present some theoretical approaches regarding measuring of the main determinants influence on inflation and based on these determinations to present the developments observed in the Romanian economy. Inflationary process is in the spotlight of all the world authorities, being concerned with quantification and imbalances controlling generated by disfunction of macroeconomic variables. In this context we focus on how the unit cost of labor affects inflation. The result of our research shows that due to the impact of real wage on the cost of the producer, the sales prices are obviously affected, the impact including exports. Theoretical models sustain the conclusion that the nominal wage may not be relevant since it doesn’t show the influence of labor productivity.variable, model, inflation, sales prices, exports, real wage

Are able fiscal advantages to promote the interest for insurance? - The situation of Romania versus the international one

At present, the insurance business has become a major industry of national savings, the turnover within the insurance domain continues to increase and almost everything is taken into consideration through insurance terms. The share held by the insurance area within the gross domestic product of each country, continues to grow, it may reach 16% in certain countries, its level corresponding to the economic development of the country. In other countries, like Romania, there are a lot of unfavorable conditions for development of insurance market, reason for introduction the fiscal advantages for the different categories of insured persons. In this paper we show the tax treatment for the insured person from Romania, at the present moment, as well as the existing ones on the international level. The analysis of the fiscal facilities effects proposed for certain insurance categories shows the growth of interest for its from potential insured persons, as tax contributories.fiscal advantages, fiscal facilities, tax system of insurance

Transfer Pricing – a Fiscal Issue

Lately a frequently used practice to reduce fiscal costs is the commercial transactios of products between subsidiaries of multi-national entities depending on their actual purposes or strategic objectives. In this context an important role in policy’s of such companies have methods available for pricing transfer. Even a relatively late entrant into economical practice, transfer pricing has rapidly emerged because more than a half of global transactions are conducted through multinational companies. In this paper we intend to present some of the situations where use transfer pricing, the consequences of their practice and their fixing methods on the basis of the strategic objectives of companies.transfer pricing, profitability, tax

Price stability and financial stability in the context of EUROSYSTEM’s monetary policy

In this article we propose to review some aspects of the relationship between price stability and financial stability in the current economic context. It is acknowledged that monetary policy of the EUROSYSTEM still have as the main objective the price stability, this being one of the most important ways of supporting sustainable economic growth. Although there are many theoretical approaches of the price stability concept all converging towards the idea of measuring and control of permanent inflation. Financial stability can be seen in the broad sense as the situation in which the financial system may ensure the efficient allocation of savings to investment opportunities and may face the shock without major disruptions. Viewed from this perspective the increased complementarity between price stability and financial stability is associated with economic globalization and, in particular, eliminating impediments to the free movement of capital flows. On the other hand the financial stability may be defined as a situation characterized by the absence of banking crises and by the existence of a certain level of price stability of the assets, including interest rates.peer-reviewe

Country risk decision-maker in applying the yield cash-flow estimate

The research paper finds applicability in evaluating assets of enterprise and has as main objective to illustrate how the country risk is a decision maker to determine appropriate rates underlying cash flow estimate using the yield method. The transition from the theoretical to the practical study is done through a case study in the agro-industrial farm found in Dolj, Romania. Practical storage capacities starting from the silos owned by it, the market rates charged for each transaction carried during storage in silos and low country risk used in determining a discount rate, we determined the level of cash-potential flow could be obtained.peer-reviewe