MONETARY POLICIES AND INDUSTRIAL FLUCTUATIONS IN EAST EUROPEAN COUNTRIES
Journal Title: CES Working Papers - Year 2015, Vol 7, Issue 1
Abstract
Industrial fluctuations are closely related to the evolution of relative prices of produced goods and resources involved in production activity. Industrial fluctuations, as an expression of forces manifested in the real economy, are caused by changes in individuals’ consumption and investment decisions, produced within expansionary monetary policies. The ease of obtaining a bank loan in the context of decreasing interest rates and of larger amounts of money caused an increase in individuals’ demand for goods resulted from longer, capital intensive production processes. The rise in prices of intermediate and capital goods in a faster pace compared to the increase in prices of consumer goods is doubled by the increase of the share of higher order industries in the structure of production. The objective of this paper is to analyze changes in industrial structure of Eastern Europe countries within the policies of quick access to monetary resources. The analyzed states (Bulgaria, the Czech Republic, Hungary, Poland and Romania) are part of the European Union and have autonomous monetary policies, meaning that they have not yet adopted the common currency. In all economies analyzed, we find approximately the same patterns of monetary expansion and industrial fluctuations.
Authors and Affiliations
Mihaela IFRIM
Keywords
Related Articles
- EP ID EP142790
- DOI -
- Views 107
- Downloads 0
ROMANIAN MACROECONOMIC STABILITY BETWEEN THE BALANCE OF PAYMENT ASSISTANCE AND THE EUROPEAN SEMESTER
The first EU Alert Mechanism Report demonstrates the vulnerable macroeconomic external position of Romania, the current Romanian’s balance of payments reflecting a severe need of financing and capitalization. On the othe...
HOW FAR HAVE WE REACHED IN EUROPEAN COOPERATION IN CIVIL MATTERS? A VIEW ON EUROPEAN ENFORCEMENT
The EU judicial cooperation in civil matters system was developed following the needs of member states to achieve a common goal, which is to create a space of mutual recognition of judgements and distribute the juridical...
WHAT CAUSES INSOLVENCY? A STUDY REGARDING BIG AND MEDIUM ROMANIAN ENTERPRISES GOING BANKRUPT IN 2013
The failure of a company, whether insolvency or bankruptcy, has been a topic featured by countless researchers from various fields over time. In an attempt to counteract this negative phenomenon most of the studies focus...
JEWISH AND ARMENIAN POPULATION AT THE BASE OF IASI COUNTY DEVELOPMENT
Through this article I try to highlight the importance of Jewish and Armenian population which contributed to the development of Iasi County. They were a numerous population some centuries ago, contributing to commerce,...
THE EMPLOYMENT LEVELS IN THE EUROPEAN UNION AND IN THE REPUBLIC OF MOLDOVA: A COMPARATIVE ANALYSIS
This article addresses the issue of employment. Employment policy was and still is a rather important issue that has always drawn economists’ attention and has always been on the business agenda of central public bodies....