Monetary policy at crisis times

Kemal Kozarić () and Nikola Fabris ()
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Kemal Kozarić: Governor of the Central Bank of Bosnia and Herzegovina and a professor at the Faculty of Economics in Sarajevo
Nikola Fabris: Chief Economist of the Central Bank of Montenegro and a professor at the Faculty of Economics in Belgrade

Journal of Central Banking Theory and Practice, 2012, vol. 1, issue 1, 5-24

Abstract: Working in a financial crisis environment is one of the most stressing tasks for a central banker. In order to diffuse a financial crisis, preventive policies, are of vital importance yet they cannot remove all disruptions that could lead to a crisis. Therefore, when a crisis emerges, risk management is of crucial importance. Risk management requires the utilisation of all available monetary policy instruments, as well as many unconventional instruments that would otherwise be considered as unacceptable in normal times. The paper discusses which actions a central bank should take at a down of a crisis, including the instruments from the “psychological arsenal” such as crisis PR and deposit insurance.

Keywords: central bank; monetary policy; crisis; monetary policy instruments; crisis PR (search for similar items in EconPapers)
JEL-codes: E52 E58 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:cbk:journl:v:1:y:2012:i:1:p:5-24

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