Akademik Məlumat İdarəetmə Sistemi
Australian Journal of Basic and Applied Sciences, vol.6, no.10, pp.435-447, 2012 (Scopus)
In the first decade of the transition, the monetary policy of National Bank of Romania (NBR) was based especially on some very restrictive monetary tools such as maintaining for a long time a high discount rate and a high rate of the minimum reserves for domestic currency. Their high level, as compared to that of the other economies in transition, has caused the maintaining of high interest rates in the entire banking system, and this has not stimulated the economy and the domestic investments. More than this, these high rates have not succeeded in attracting the foreign investments which dramatically decreased after the boom which took place at the beginning of the "90, because of the domestic economic and politic conditions. So, the monetary policy of NBR did not support the efforts to recover the economy. The re-orientation of the policy of NBR at the beginning of the last decade was meant to support both the objective of the domestic balance and that of the external balance. But, once Central and East European countries will accede one by one to euro-zone, they will lose their monetary instruments to adjust the macroeconomic imbalances and will base only on fiscal and budgetary policy. The aim of this paper is to test empirically the impact of the monetary policy factors on FDIs in Romania and to propose some directions for the Romanian macroeconomic policy. In Romania, empiric results have shown that monetary factors such as higher interest rates and higher inflation attracted FDIs in the last decade. From the regression we found that the fiscal factors (mainly direct taxes) seemed to play a less important role. So, Romania should also focus on improving the other non-financial factors that influence greatly the investment environment here (infrastructure, legal and political stability) in the long-run, after it enters in the euro-zone.