THE INDEPENDENCE OF THE ROMANIAN NATIONAL BANK - THE PREMISE OF MONETARY POLICY EFFECTIVENESS

The elaboration of the monetary policy is subordonated to reaching the objective of the economic policy, with the main task of controlling the amount of money available in the economy, so it must have sufficient liquidity to ensure its normal functioning operation and balanced development. The achieving of the objectives of monetary policy is closely linked with economic policy coordinates. The significance of the monetary policy can not be full unless it expresses the correlation between the monetary policy and the economic policy, for which the monetary authority does a ranking of monetary policy instruments. The independence of the Central Bank creates a higher monetary stability and a better adherence to long-tern: interests of the economy. The central bank independence is limiting government control over central bank money creation to ensure the currency and to cover their expenses.