Acta Universitatis Danubius. Œconomica, Vol 13, No 1 (2017)

Abstract

The paper proposes the analysis whether the Basic New Keynesian model with imperfect competition in goods market and price adjustment mechanism is suitable for the economy of Romania, as an emerging country.

Given the vulnerabilities of the Central and Eastern Europe region at the beginning and during the recent global economic and financial crisis, there is an increased interest to identify the models that can explain the main features of macroeconomic data and to put an eye on the frictions that are really necessary to describe the stochastic dynamic of macroeconomic data.