The subject of central bank independence has been the focus of debates during the 1990s\r\nand 2000s. It seems that consensus has been reached over the need to support high legal\r\ncentral bank independence in order to achieve price stability, and lower inflation rates.\r\nHowever, many doubt this institutional arrangement has the desired outcome in all cases\r\nand fear that cultural elements such as inflation aversion among citizens, tradition of rule of\r\nlaw and other factors may be more important. Romania, as member of the European Union,\r\nhas to comply with the high legal central bank independence requirements. Despite the\r\nalleged progress of the National Bank of Romania, concerns regarding its real independence\r\nfrom the government still remain. The article explores the development of central bank\r\nindependence in relation to monetary policy, in the case of Romania
Loading....