Romania had made little change to its command economy before the 1989 revolution, and reform after that was slow and erratic, but enough for it to embark on loose inflation targeting in 2001.

Years Targets and attainment Classification
1974-90 monobank financial system accommodating centrally set economic plan; multiple exchange rates for trade with both ‘non-socialist’ and ‘socialist’ countries multiple direct controls MDC
1991-2000 two-tier banking system from end-1990 but development of modern financial system with coherent monetary policy and instruments slow and tortuous; attempts to reform forex market and arrangements equally erratic; recurring fiscal dominance unstructured discretion UD
2001-05 unannounced exchange rate crawl at varying rates; fiscal dominance partly controlled, gradual move towards indirect monetary policy instruments; objectives clearer loosely structured discretion LSD
2006-13 inflation targeting from August 2005, convergence erratic with three large overshoots and two near misses in eight years, but evidence that inflation expectations anchored (albeit in top half of target band); continued attention to exchange rate and recurring divergence between policy and ‘effective’ interest rates mean inflation targeting remains less than ‘fully-fledged’ loosely converging inflation targeting LCIT
2014 now continuous and static inflation target, but inflation targeting still not fully-fledged loose inflation targeting LIT

Selected IMF references: RED 1974 pp84-9; RED 1979 pp48-9; RED 1982 pp107-9; RED 1990 pp1-6, 61-2; RED 1992 pp6-9; RED 1997 pp11-13, 36-51, 53, ; SISA 2000 pp99-101; SISA 2007 pp12-16; SR 2012 pp17-19; SR 2014 p14; SR 2015 pp5, 13.

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