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

ISSUES ABOUT THE EVALUATION OF THE FINANCIAL INSTRUMENTS AND TAX IMPLICATIONS

Accounting assessment is a process with tax implications on accounting figures. In fact, when it comes to evaluation, we need to clarify exactly what is being refered to: it s about the individual assessment of an asset or liability, or about the global assessment of a business. So, in a narrower approach, in accounting we are particularly interested in the individual assessment of assets and liabilities. In the evaluation, the concept of value is the primary element, accounting, especially along with the application of the principle of economic prevalence over the juridic, managed to convey the best measure those interested, information about how to create, to mesure and how to comunicate to business partners the value. The tax implication that arise after the evaluation of the individual elements of the asset, influence the result of the exercise by including the expenditure in the total expenses generated by the evaluation. The main asset elements, which following the evaluation generate tax implications are the tangible fixed asset, financial and stocks. Based on this consideration, one of the main objectives of this paper is to highlight the tax implications arising from the evaluation of financial instruments that generate tax liabilities

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.Monetary policy, the direct inflation targeting, open-market operations, Minimum Obligatory Reserves mechanism

Challenges of the Central Banks in the Post Crisis Period when Needed to Ensure the Financial Stability

The concerns of the European and domestic monetary authorities to reform the current regulatory but also supervisory framework became our main reason to achieve this scientific approach. The international financial crisis has generated important dysfunctions at the level of the main activity of central banks but also at the level of the objectives that these banks should meet. Thereby, if most central banks have normally pursued the objective clearly stated in their mandate as "price stability", nowadays they are trying to achieve the "financial stability". Thus the main objective of this study particularly concerns: highlighting the role of central banks in ensuring the financial stability; and analyzing the challenges of the central banks after the financial crisis

Specific Implementation of Fiscal Policy in Some New EU Members, Former Communis Countries

The fiscal policy has been a part of the economic policy, contributing by specific means to drawing up the economical program of governance. The fiscal policy, seen as specific field of the economical policy, represents the conception and immediate action on organization, management and carrying out the fiscal activities; in other words, one should understand that fiscal policy signifies an assembly of methods, techniques and principles, which concern the operations, relationships, institutions and stipulations within fiscal field. Considering the current integration on the European unique market, the member states are liable to monitor the size of budgetary balance on current account and the public debt inventory, so that they will be able to comply with the restrictions stipulated in The Treaty of Maastricht (1992) and completed by The Settlement of Economic Steadiness and Growth (1997). The two agreements foresee special mechanisms in coordinating the fiscal and budgetary policies, assuming the drawing up of steadiness programs able to aim towards the re-equilibration on short term, or storing the budgetary surplus on long term. In this way, both the East-European states, currently candidates to Euro area, and the West- European states, before the adhesion to Monetary European Union, have started strategies of fiscal adjustment; these strategies consisted of measures able to ensure the necessary conditions on fulfilling the objectives imposed by means of nominal convergence criteria. In this paper, an analysis was proposed over both the changes carried out by the fiscal policy that was adopted by after- communism countries, members of European Union, and over the challenges created by fiscal policy, in conditions of experiencing results of the current economic crisis. The research method consists of storing, analyzing and comparing the data concerning the fiscal policy tools and the budgetary deficiency over EU member countries, provided by Eurostat database.fiscal policy, governmental income and expense, budgetary deficiency