THE ROMANIAN RESPONSE TO THE FINANCIAL CRISIS

Abstract

The importance of financial linkages among countries in the crisis spread, is currently a highly debated topic. Small shocks caused by the collapse of the financial system of a country can easily turn into a crisis, of dimensions that can be hardly imagined. There are several channels which could play an important role in transmitting the initial shock. Focusing exclusively on rational explanations, the financial crisis in one country could provide negative information about other countries with similar characteristics.financial crisis, monetary policy, real economy