THE COSTS AND BENEFITS OF ROMANIA'S ADERATION TO THE EURO ZONE AND ADOPTION OF THE UNIQUE CURRENCY

The accession to the Economic and Monetary Union, though not a criterion of accessing the European Union, involves the compliance with the convergence criteria of Maastricht: stability of the exchange rate, of interest rates, of the inflation, of the external debt and budgetary deficit. Even if the joining of the EMU represents therefore no conditioning of accessing the EU as a full rights member and, maybe, no priority of the candidate countries, the consequences of this option must be seriously put into balance, taking into account the most the fragile macro-economical stability of the pretending countries, such as Romania. A major regime change, as the monetary unification, is clearly made when there are strong motivations given by benefits, but such a change involves costs, risks and difficulties. The adoption of the unique currency in an unsuitable time can have more bad consequences than positive ones.Economic and Monetary Union, nominal convergence, real convergence, money

Inflation targeting-fundamental objective of the monetary policy of Romanian National Bank (BNR)

After the 80’s, a lot of central banks have shifted from the evolution of the monetary aggregates towards inflation targeting, case in which have been eliminated the intermediate objectives of the monetary policy. Hereby, in the 90’s, the growing preoccupation for ensuring price stability as a premise for long-term economic growth has materialized in the adoption of the central banks from many countries of a new monetary policy strategy. Direct inflation targeting Initially, the strategy has been adopted by some countries with a developed economy. Direct inflation targeting has become after the crises from Latin America and Asia, an attractive alternative also for the emerging economies. Romania is the 22nd country that has adopted the direct inflation targeting strategy.. For now, NBR considers the inflation targeting as being the adequate medium-term monetary policy framework, leading in the same time at the increase of independence and credibility. This monetary policy strategy is applied in Romania starting from 2005, until, introducing the Exchange rate mechanism (ERM II) The exchange rate policy will still remain the controlled floating. Although the exchange rate will play a stronger role in reducing inflation, NBR has reduced its interventions, leaving the foreign currency market to find the equilibrium level for the exchange rate. After the moment of introducing the ERM II, the maintaining of the direct inflation targeting strategy is probable or is possible to pass at an exchange rate targeting strategy.peer-reviewe

ANALYSIS TO INSTRUMENTS OF MONETARY POLICY USED BY NATIONAL BANK OF ROMANIA STARTING WITH 1990 IN THE CONTEXT OF EUROPEAN UNION INTEGRATION

The monetary policy play an important part to promotion and maintenance ofeconomical growth, especially in countries of transition; this has become essential to adjusting theeconomic equilibriums, presented within these economies, particularly to controlling the inflationistslide-slip and current accounts deficits, related to balance of payments. The monetary policy of theNational Bank of Romania, whose implementation will be forwards accomplished within context ofstrategy to direct inflation aiming point, will be also consequently directed to consolidation ofdisinflation process and of assuring the decreasing of inflation rate on middle term to levelscompatible with definition of prices steadiness adopted by ECB (European Central Bank. Analyzingthe operational frame of monetary policy in Romania after 1990, one might reach the conclusionthat the main used instruments of monetary policy were the following: the re-financing policy, theminimal compulsory reserve and the open – market policy.monetary policy, price stability, the re-financing policy, the minimal compulsory reserve, theopen – market policy

Structural and Qualitative Analysis of the Romanian Banking System

The banking sector, the predominant component of the Romanian financial system, had a relatively stable structure in the period 2005-2009 and has experienced significant consolidation, particularly in the years 2005-2006, this being sustained mainly by the restructuring and privatization process, but also by Romania's EU accession perspective and the competitive environment in this area. Given the new status of Romania as EU member country, the competition in the banking system has increased significantly, leading to both structural changes, but also to changes in levels of analysis indicators of banking structure and performance. Following this analysis, it appears that, recently, our country's banking system saw a dynamic and unprecedented diversification resulting from the economic development of the society and adaptation to EU requirements, and we can say that in Romania there is, now, a modern and competitive banking system, which provides circulation of the domestic economy and provides banking products and services in accordance with trends in the European banking sector.banking structure, liquidity, solvability, banking performance, foreign capital

Structural and Qualitative Analysis of the Romanian Banking System

The banking sector, the predominant component of the Romanian financial system, had a relatively stable structure in the period 2005-2009 and has experienced significant consolidation, particularly in the years 2005-2006, this being sustained mainly by the restructuring and privatization process, but also by Romania's EU accession perspective and the competitive environment in this area. Given the new status of Romania as EU member country, the competition in the banking system has increased significantly, leading to both structural changes, but also to changes in levels of analysis indicators of banking structure and performance. Following this analysis, it appears that, recently, our country's banking system saw a dynamic and unprecedented diversification resulting from the economic development of the society and adaptation to EU requirements, and we can say that in Romania there is, now, a modern and competitive banking system, which provides circulation of the domestic economy and provides banking products and services in accordance with trends in the European banking sector

The implications of the accounting harmonization process on EU countries : a case study of Greece and Romania

The progressive globalization of the financial and capital markets, the elimination of the national frontiers, the intensification and increase of the international transactions’ number, the spreading of the global companies, the increase of the global economy’s integration degree and the awareness of the fact that the values recorded in the financial statements are influenced by the accounting language adopted for expressing them are, altogether, the main factors that have determined the EU to choose the accounting harmonization way in making the financial statements of the communitarian companies. The main objective of this paper is to analyze the analogies and differences existent between the national accounting legislation and the international accounting practices, insisting on the implementing difficulties of these standards, varying with the economic culture of certain states, among which Greece and Romania. In the idea of the accounting unification Greece was also interested, in the same measure as the other member countries, but the authors will insist on the repercussions these accounting standards’ adoption had on the stakeholders categories, which were interested in the financial reports.peer-reviewe

THE EFFECT OF THE COVID-19 PANDEMIC ON SAVING BEHAVIOUR: CASE OF ROMANIA

In contemporary society, at the macroeconomic level as well as at the individual level, of person or society, economies play a key role with a direct impact on the behaviour of the population. In the context of the COVID-19 pandemic, this study systematically explored whether and why the health crisis stimulates consumers’ preference for savings (over spending). The purpose of this paper is to analyse the preferences of the population but also of the economic agents regarding the investments in bank deposits, investments made by them both at European and national level. The analysis consists in the analysis of the evolution of savings in Romania but also in other European countries and is based on the data published by the Central Bank of Romania in the NBR statistics, FGDB statistics but also the data published by Eurostat. Savings are also analysed by institutional sectors, with a focus on the household sector and non-financial corporations. The results of the study show that in order to better cope with future uncertainties and risks, individuals can reserve resources and increase their saving behaviour. It is also observed that individuals facing a pandemic save more than in periods of stability

THE COSTS AND BENEFITS OF ROMANIA'S ADERATION TO THE EURO ZONE AND ADOPTION OF THE UNIQUE CURRENCY

The accession to the Economic and Monetary Union, though not a criterion of accessing the European Union, involves the compliance with the convergence criteria of Maastricht: stability of the exchange rate, of interest rates, of the inflation, of the external debt and budgetary deficit. Even if the joining of the EMU represents therefore no conditioning of accessing the EU as a full rights member and, maybe, no priority of the candidate countries, the consequences of this option must be seriously put into balance, taking into account the most the fragile macro-economical stability of the pretending countries, such as Romania. A major regime change, as the monetary unification, is clearly made when there are strong motivations given by benefits, but such a change involves costs, risks and difficulties. The adoption of the unique currency in an unsuitable time can have more bad consequences than positive ones