Money Policy Modelling in View of the Macroeconomics Stabilization

The stabilization of an economy can be achieved in two ways: (a) in case the behavior relationships that are specific for the endogenous variables depend on the long term variables, not on the current values of the variables; and (b) by using the automate stabilizers' properties. The latter ones stand for mechanisms that automatically trigger compensation modifications to the current changes that occur to the income; however, at the same time, they represent a bottleneck to obtaining the targeted level of the income or of the output, and they are commonly made use of within the counter-cyclic tax policy. The macro-stabilization policies applied to Central and Eastern Europe countries are issued based on a model according to which the trade liberalization, the real wages cutting-down and the cutting down of government subsidies shall lead to the development of private businesses both as concerns the investment domain, and also that of the production, as well.