R. Malar KUMARAN, Alexandru Mircea NEDELEA


The monetary policy is the backbone of economic system. It is equally important instrument of regulating inflation with or without inflation target. Romania has rightfully adopted to price stability despite the fact that European Union and European Commercial Bank preferred price stability. JM Keynes in his General theory suggested that the monetary policy would be associated with interest rates for credit expansion and contraction for employment and growth. John B Taylor and other economists have opted for other measures including sacrifice of economic growth for inflation targets. The policy mix does play important role in this regard among other options. There are different views on price stability and financial stability while deciding the monetary policy options.


Monetary Policy: Financial Statistics; Interest Rates; Central Bank; ECB


Keynes (1938), In collected Works of JM Keynes, Vol 21, pp 434-39

Clark Johnson (2012), Keynes: Evidence for Monetary Ineffectiveness?, 23 June 2012 (revised): Lawrence Summers, “Look beyond interest rates to get out of the gloom”, Financial Times, 3 June 2012

Keynes(1936), General Theory of Employment, Interest and Money , 1936

Robert Mundell (1971), The Dollar and the Policy Mix: 1971, Essays in International Finance, No. 85, May 1971, Department of Economics, Princeton University, Princeton, New Jersey

John Weeks (2010), Why Monetary Policy is Irrelevant in Africa South of the Sahara, Centre for Development Policy and Research, School of Oriental and African Studies, Development Viewpoint, Number 53, June 2010

Surjit.S Bhalla (2014), Where monetary policy is irrelevant, Indian Express, September 13,2014

Alan Greenpan (2015), CNBC, Friday, 4 September 2015, 8.56 AM ET

Nicola Acocella (2004), Non-Neutrality of monetary policy in policy games, European Journal of Political Economy , Volume 20, Issue 3, September 2004 Pages 695-707

Valentina Mera and Monica Pop Silachi (2015), An Insight Regarding Economic Growth and Monetary Policy in Romania, Scientific Annals of the “ Alexandru loan Cuza” University of Iasi Economic Sciences, 62 (SI), 2015, 85-95

Mervyn King (2000), Deputy Governor, Bank of England, Address: Monetary Policy: Theory and Practice, 7 January 2000

SP Kothari (2014), Monetary Policy: Tight, loose, irrelevant, OTC Space, 16 October, 2014 The Economist Feed

National Bank of Romania (2017), Romania Monetary Policy , February 7, 2017, Focus Economics

Axel Weber (2014), Monetary Policy: caught between price stability and financial stability, 2 September 2014., The Banker , 2014

David C. Wheelock (1998), Price Stability and Financial Stability: Competing or Compatible, Federal Reserve Bank of St. Louis, Central Banker, Fall 1998

Full Text: PDF

Creative Commons License
This work is licensed under a Creative Commons Attribution 3.0 License.