THE ECONOMETRIC STUDY OF INFLATION VOLATILITY FROM THE PERSPECTIVE OF MONETARY POLICY OPTIMISATION
The purpose of this research is to identify the inflation process volatility from the perspective of monetary policy decision optimisation. Following the study of the literature, the theoretical and conceptual aspects have been defined, which implies the central banks attention need on the infla...
| Main Author: | |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Academy of the Economic Studies of Moldova
2019-03-01
|
| Series: | Economica |
| Subjects: | |
| Online Access: | http://irek.ase.md/xmlui/bitstream/handle/123456789/567/Hinev-O_Economica%20nr.3%20septembrie%202019.pdf?sequence=1&isAllowed=y |
| Summary: | The purpose of this research is to identify
the inflation process volatility from the perspective of monetary policy decision optimisation.
Following the study of the literature, the theoretical and conceptual aspects have been defined,
which implies the central banks attention need on
the inflation volatility and its associated effects in
order to achieve the proposed objectives. Thus,
the prediction of price volatility would not only
reduce inflation, but would also make monetary
policy much more efficient. The strength of the
study is focused on modelling the inflation
volatility in the Republic of Moldova by applying
the GARCH econometric model. Based on the
study, we concluded that during 1995-2018 in
the Republic of Moldova, the inflationary process recorded the alternation of periods with
increased and reduced volatility. It should be
mentioned that the changes generated by the
volatility from the previous periods are significant, and with the inflation volatility increase,
the price instability persists. |
|---|---|
| ISSN: | 1810-9136 1810-9136 |