Research of the price level and the equilibrium price in Republic of Moldova

Dinetti Leon; Cuhal Radu

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2021-06-13 21:42

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DINETTI, Leon, CUHAL, Radu. Research of the price level and the equilibrium price in Republic of Moldova . In: Anuar Ştiinţific al Institutului de Relaţii Internaţionale, 2010, nr. 7-8, pp. 240-250. ISSN 1857-1840.

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Anuar Ştiinţific al Institutului de Relaţii Internaţionale

Numărul 7-8 / 2010 / ISSN 1857-1840

Research of the price level and the equilibrium price in Republic of Moldova

Pag. 240-250

Dinetti Leon¹, Cuhal Radu²

¹ University of Maryland,
² National Bank of Moldova

Disponibil în IBN: 16 decembrie 2013

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The difference between the current price level and the equilibrium price determined by the structural characteristics of the economy is defined as the P* gap. The value of this gap exerts a pressure on the level of inflation and it can be used as an important indicator for monetary policy authorities. This paper analyses the P* (P-star) gap within the 2003-2008 period for the Republic of Moldova. It proves that there is a strong link between the P* gap and the evolution of the core inflation.

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