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 SM ISO690:2012DINETTI, 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 | ||||||
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| Pag. 240-250 | ||||||
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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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