Oana Maria Georgescu

The impact of the political crisis on the national currency

Disentangling the political from the economic causes of the Leu depreciation is not a trivial task and is subject to some degree of uncertainty. Our results clarify the ongoing political debate on whether the external environment - the effects of the economic crisis in the region - are to be blamed for the depreciation of the Leu or whether the main cause is the internal political turmoil generated by the impeachment of the President.