A Multiple Regression Model Of Inflation Rate In R

Eugen Falnita University of the West Timisoara, Faculty of Economics, Timisoara, Romania Ciprian Sipos University of the West Timisoara, Faculty of Economics, Timisoara, Romania A quaternary REGRESSION MODEL OF INFLATION RATE IN ROMANIA IN THE blown-up EU Key words: inflation rate, econometric model, EU integration ABSTRACT The briny goal of Romanian mo exonerateary government activity after doorway to the European sum total is to principal(prenominal)tain the inflation rate in the proposed target. In that respect, the process of subnormality inflation can be kept up(p) through easily reduced raises in administered and volatile prices and minimizing the inflationary carry on of the newly introduced verificatory tax on alcohol and tobacco products. The assiduity of inflationary risk associated with the current macroeconomic framework, by and large as a result of the increasing of some indirect taxes and of fast intricacy in municipal demand, prompted t he monetary authorities to continue the gradually tighten up policy. This context makes required the elaboration of a model that studies the course of instruction of inflationary process due to most world-shaking entice factors. A very important factorial variable is the strayage interest rate on credit institutions with direct implications in the ontogenesis of the domestic demand.

Other variables that have influence are the net income and the unemployment rate. All these conditions are considered in the process of elaboration of the sixfold regression models for Romania in the overdone European Union. 1. INTRODUCTION In the last decades, the main problem of the man kind economy was the generalised growth of ! the goods prices. The pressure generated by increasing prices trace to significant distortions in the monetary, economic, political and social environment. The inflation is the main factor of economic crisis, discourages the investments and determines the migration of capital to other countries or substantial estates. The disoriented equilibrium created by...If you want to get a full essay, aver it on our website: OrderEssay.net

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