The exchange rate reflects the ratio at which one currency can be exchanged with another currency, namely the ratio of currency prices. The relevant literature implies, by the purchasing power parity theory, that in the long-run exchange rates converge to an equilibrium level. The question that...

As a result of the financial market globalization during the last two decades, the conventional barriers between financial activities have diminished. This led to the emergence of financial holdings that operate both in the banking sector and on the stock

Taking into account the schedule of Romania’s monetary integration: the entrance into Exchange Rate Mechanism II in 2012 and the euro adoption in 2014, our authorities have become preoccupied in accelerating the convergence process. This paper aims to analyze Romania’s progress in the...