Central bank independence, inflation and economic performance

The paper deals with the issue of central bank independence, which has become the topic of many debates in the last years. Central bank independence is considered one of the determinants of the inflation, as empirical studies have found a negative correlation between central bank independence a and inflation rates in developed countries, while in emerging market economies an important determinant of inflation rates seems to be the turnover rate of central bank governors. Appreciation of the independence of central bank often has a formal character, with focus on its relationship with the government. In spite of the fact that legal independence does not always fully translate into actual independence, it is nonetheless associated with significantly lower inflation. This paper proposes to overview the literature on central bank independence and its correlations with inflation and economic performance.cetranl bank, independence, price stability, accountability

The prospect of Euro adoption in Romania

Taking into account the schedule of Romania’s monetary integration: the entrance into Exchange Rate Mechanism II in 2012 and the euro adoption in 2014, our authorities have become preoccupied in accelerating the convergence process. This paper aims to analyze Romania’s progress in the convergence process, as well as, the current stage of the fulfilment of nominal and real convergence criteria required for euro adoption. In the same time we compare the results obtained by our country and those recorded in other Central and Eastern European states in the integration process. We also debate on the main reasons responsible for delaying the convergence process in Romania and the prospect of speeding up this process without a negative impact on the economy.peer-reviewe

THE IMPACT OF EUROPEAN INTEGRATION AND FINANCIAL GLOBALIZATION ON PRUDENTIAL SUPERVISION

As a result of the financial market globalization during the last two decades, the conventional barriers between financial activities have diminished. This led to the emergence of financial holdings that operate both in the banking sector and on the stockmodels of prudential supervision, consolidated supervision, traditional supervision, central bank

FACTORS INFLUENCING THE UNEMPLOYMENT RATE IN ROMANIA DURING 1997-2019

Current macroeconomic theories examine the problem of unemployment rate from the aggregate demand point of view. Rising unemployment is always seen as a sign of the weak economy, where is a slow growth and also little spending. These might trigger actions by authorities to help reduce unemployment, by increasing the nation's money supply, so it can boost the economy. Among the factors that influence (un-)employment, at least two very important should be taken in consideration: exchange rate and inflation. The research aims to analyse the impact of inflation, the RON / EURO exchange rate and the financial crisis on unemployment rate in Romania during January 1997- March 2019. JEL Codes: E24, F31, E3

STOCHASTIC DOMINANCE ON FTSE INDEX

Stochastic dominance is a method that refers to a set of relations, which may hold between a specific pair of distributions. However, the concept can be applied in many domains, but in particular in financial economic areas, where the considered distributions are usually those of random returns to different financial assets. The aim of this paper is to provide an implementation of a stochastic dominance algorithm that establish which of more risky indices is preferred more by investors who have an aversive risk profile. The study is performed on FTSE indices. The focus is to emphasis the imbalance between FTSE regional indices and FTSE sectorial indices. The analyzed period for regional indices is April 3, 2000 –September 12, 2014. As regards the sector indices, the analyzed period is January 3, 1994 – September 12, 2014.Its relevance consist in that, it offers a different perspective for investors when choosing between different financial assets. This approach together with Meyer algorithm has been proved that it is a useful tool in risk aversion analysis. JEL Classification: C73, D9, D53

Coordonate ale reformei sistemului de pensii. Cazul României

The reform of the pension systems has become a necessity in most of countries, as the public pension plans are not capable of ensuring a decent pension for the elderly. A significant factor in the crisis of the public pension systems is related to demographic data and forecasts, which indicate a decrease in population and an increase in average life expectancy. Thus, securing elderly persons financially can only be achieved with the help of the private pension systems. In the first part of the paper we present the types of pension systems, highlighting the features of unfunded and funded pension schemes. In the case of funded pension systems, we insist on the comparative advantages and disadvantages of defined benefits schemes and defined contributions schemes. In the second part of the study we analyse the current pension system in Romania. Our analysis includes the three pillars of the pension system: state pensions, compulsory private pensions and optional private pensions. We also discuss the importance of pension funds in the case of Romania. We conclude with some remarks about these pension plans and comments on the prospects of the Romanian pension system.</p

ŢINTIREA INFLAŢIEI – O STRATEGIE DE POLITICĂ MONETARĂ TOT MAI POPULARĂ

Începând din anii ’90, băncile centrale din numeroase ţări au devenit tot mai preocupate de asigurarea stabilităţii preţurilor. Există două strategii de politică monetară prin care băncile centrale pot atinge obiectivului stabilităţii: strategia bazată pe obiective intermediare şi, respectiv, ţintirea directă a inflaţiei. Constatând că strategia bazată pe obiective intermediare nu este foarte eficientă, în ultimii optsprezece ani băncile centrale din unele ţări dezvoltate au trecut cu succes la ţintirea inflaţiei ca şi cadru al politicii monetare. Drept urmare această strategie a devenit o opţiune atractivă, fiind adoptată de un număr tot mai mare de ţări emergente din Europa Centrală şi de Est, America Latină şi Asia de Est. În toate aceste ţări rata inflaţiei a înregistrat un trend descendent după adoptarea ţintirii inflaţiei, astfel că până în prezent nici una dintre aceste ţări nu a renunţat la această strategie. Acest articol îşi propune să investigheze literatura de specialitate referitoare la ţintirea inflaţiei şi la corelaţiile dintre aceasta şi performanţele economice. În prima parte a articolului ne vom referi la contextul adoptării ţintirii inflaţiei. În partea a doua vom pune în discuţie argumentele pro şi contra acestei strategii. În final vom comenta impactul ţintirii inflaţiei asupra performanţelor economice. Totodată, vom formula păreri personale şi critici privind implementarea şi eficienţa acestei strategii.ţintirea inflaţiei, politica monetară, banca centrală

The Prospect of Euro Adoption in Romania

Taking into account the schedule of Romania’s monetary integration: the entrance into Exchange Rate Mechanism II in 2012 and the euro adoption in 2014, our authorities have become preoccupied in accelerating the convergence process. This paper aims to analyze Romania’s progress in the convergence process, as well as, the current stage of the fulfilment of nominal and real convergence criteria required for euro adoption. In the same time we compare the results obtained by our country and those recorded in other Central and Eastern European states in the integration process. We also debate on the main reasons responsible for delaying the convergence process in Romania and the prospect of speeding up this process without a negative impact on the economy.nominal convergence, real convergence, euro adoption

THE IMPACT OF FINANCIAL LIBERALIZATION ON ROMANIAN BANKING SYSTEM EFFICIENCY

In the last three decades, many emerging countries have moved away from a system of restrictive monetary and financial controls to a more liberalized financial sector. The restrictive imposed policies were expected to contribute to industrialization of the economy and to the stability of the banking sector. However, financial liberalization had big costs on the banking system's competitiveness and efficiency. Financial liberalization has a different impact on banking markets. Thus, there is no size that fits all policies concerning banking liberalization process. For highly efficient banks, competition is improving their efficiency standard, while less efficient banks can`t compete with foreign banks and further are decreasing in efficiency or are driven out of the market. Overall, the average efficiency of domestic banking markets should be an important variable in deciding to open up their banking market. Banks that are operating close to the frontier, in general are improving their efficiency following financial liberalization process. Banks that are operating in a further distance can`t manage to compete with foreign market entrants, so, they are losing from liberalization process. In this article we propose to measure the impact of financial liberalization process on Romanian banking system. We used the panel regression to study the informational efficiency of three Romanian banks during 2004 - 2012. The dependent variable of the model was the price of stock bank, and the independent variables were the financial indicators (return on equity, return on assets, net profit margin). In the second regression we introduce a dummy variable for crisis period. Our results show that the financial indicators choose do not affect the efficiency of Romanian bank, but the crisis had a negative impact on them. International context, credit risk, the implementation of Basel III and reducing exposures in the absence of investment alternatives remains key challenges to the Romanian banking system in future

Public Expenditure Evolution in EU4 Countries

In contemporary society, the economy is the main pillar on which the state is based and life society is directly influenced by its evolution. So, development, or rather growth affects the smooth running of things, but this in turn is influenced by the decisions taken by individuals from government institutions, the ability of people to make profitable investments, but also to manage it more efficiently.The paper aims to highlight the importance of knowledge in public spending system, because the local communities or nations have to be awareness that nowhere can not consume more than they produce, and when this happens, the social-economic progress is endangered, so burden and poverty population are inevitable consequences. The study is based on analysis of public expenditure system in four Eastern European countries (Czech Republic, Romania, Slovakia, Hungary) in the period 2000-2013