The assessment of the cyclical position of the economy represents for the monetary policy a crucial aspect in the decision-making process. Its relevance in this context is given by the characteristics of the indicator to be a measure of the degree of the inflationary pressures in the economy and to connect real economic activity and inflation. In this paper, we use a relatively new approach in this research area to estimate the real-time output gap. The method is based on a multivariate Beveridge-Nelson decomposition with a mixedfrequency Bayesian VAR that was initially proposed by Morley and Wong (2020) and Berger et al (2023) and it was customized for Romanian economic characteristics. The data set covers nine monthly indicators, mostly representative for the real economy, but also for confidence, commodity and financial markets to which adds the quarterly GDP growth, in real terms. The results highlight the presence of an excess of demand in the economy, following the rebound of consumption from the Covid-19 pandemic. For the last quarter of 2022, the estimated value of the output gap is around 3 %.
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