Inflation Rate

23
January

Romania: Inflation Rate and Consumer Prices

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The inflation rate in Romania during the 1990ies and the first years of this decade is best to be described as a devastating hyperinflation. Inflation was mainly caused by the Romanian’s incapability to collect taxes (and, hence, financing their immense current spending with Seignorage) and a protective exchange rate regime. The still high inflation rate in the first years after 2000 in Romania was mainly a fading out. However, in recent years Romania joint the regime of inflation targeting and left the days of double-digit inflation behind.
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