THE MONETARY POLICY INSTRUMENTS OF NATIONAL BANK OF ROMANIA AND THEIR EVOLUTION IN TIME

This paper attempts to create and overview image of the main monetary policy instruments used by the National Bank of Romania, starting from 2000 until present, as well as the evolution and the changes that these instruments have undergone in terms of value. The first part of this paper tries to present the main monetary policy instruments used by the central bank, while the second part analyzes the evolutions they have encountered during the considered period. According to the National Bank of Romania, currently, three such instruments are used, namely, open market operations, permanent facilities and minimum reserves required. Following the analysis we have made, we can say that, overall, the evolution of the three monetary policy instrument can be characterized as a descending one and the effects that the changes made in terms of their values had on the economy were, most of the time, the ones that the central bank has anticipated.