DIRECT TARGETING OF INFLATION - THE MONETARY POLICY STRATEGY OF THE BNR

The fundamental objective of the monetary policy of the NBR is to ensure and maintain the price stability. To achieve this goal, the NBR has approached as a monetary policy strategy the direct targeting of inflation, which has had agreat influence on the macroeconomic variables of Romania. The paper aims to investigate the macroeconomic forecasting models used by the NBR and to what extent the monetary instruments applied by the NBR are close to the targeting of inflation.