International Journal of Business and Social Science

ISSN 2219-1933 (Print), 2219-6021 (Online) DOI: 10.30845/ijbss

The Impact of Financial Crisis Upon the Inflationary Process in Romania
Monica Damian

The intensification of financial turmoil in September 2008 has determined a contraction of economic activity in most countries around the Globe. Because the real GDP dynamics influence the evolution of consumer prices, the effects of financial crises have been reflected upon inflation rate. To evaluate the impact of the crisis upon inflation rate, we have used a multifactorial regression model in which we included a dummy variable. The results show a positive impact, but a very low one. The effects of financial crisis have revealed upon inflation rate through international prices, consumer demand, leu currency exchange rate fluctuation. In the context of financial crisis, the financial system has become more vulnerable, and, therefore, the necessity of maintaining financial stability slows down the disinflationary process.

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