Fiscal Deficits, Monetary Reform, and Inflation Stabilization in Romania

• Author(s): Nina Budina, Sweder van Wijnbergen,
• Publisher: World Bank, Development Research Group, Macroeconomics and Growth
• Pages: 33
• Language: en

Description:... Fiscal problems are a key factor behind the inflation that has persisted in Eastern Europe since 1989. Deficits need to be cut back, but by how much for a given inflation target? A simple framework links debt, the deficit, and inflation to assess the fiscal stance of the Romanian economy.