Title: Monetary and financial policies: a dynamical model approach
Authors: Ion Viorel Matei; Laura Ungureanu; Eduard Ionescu
Addresses: European Centre of Managerial Studies in Business Administration, Spiru Haret University, Brazda lui Novac Street, No. 4, Craiova, Romania ' European Centre of Managerial Studies in Business Administration, Spiru Haret University, Brazda lui Novac Street, No. 4, Craiova, Romania ' Faculty of Banking & Finance, SpiruHaret University, Ion Ghica Street, No. 13, Bucharest, Romania
Abstract: Unquestionably it is considered that macroeconomic policy consists of two major components, the achievement and also the action of which depend, as a matter of fact, on the macroeconomic policy achievement: monetary policy and fiscal policy. Although they reckon that the core stabilisation policy should be represented by monetary policy, its effectiveness is influenced by factors that do not fall under monetary authorities. Therefore, in this study we present a dynamical model for monetary policy. The model emphasises both the principal interdependence settled between system variables (real stock of money, rate of inflation) and the variation of these is in relation to the parameters values. On the bases of the mathematical properties of the dynamics of the model under study one can infer the specific features of the modelled phenomenon and can highlight opportunities to influence these developments, forcing them to follow the optimal course imposed by necessities.
Keywords: mathematical modelling; prognosis; monetary policy; fiscal policy; simulation; financial policy; dynamical modelling.
World Review of Entrepreneurship, Management and Sustainable Development, 2015 Vol.11 No.2/3, pp.267 - 281
Published online: 06 Apr 2015 *Full-text access for editors Access for subscribers Purchase this article Comment on this article