The Necessity of Central Bank’s Involvement in Ensuring the Financial Stability

Sâmbotin ªtefan () and Iulia Bucur
Additional contact information
Sâmbotin ªtefan: „Vasile Alecsandri” University of Bacãu, Faculty of Economics

Ovidius University Annals, Economic Sciences Series, 2011, vol. XI, issue 2, 1181-1185

Abstract: Central Bank is one of the most important actors of economic life. The policy that this institution leads is important both in relation to achieving different economic policy objectives (economic growth, unemployment rate, price stability, balance of payment equilibrium) and in relation to the policies pursued by other players on the macroeconomic stage (government, employers, trade unions, European and international institutions). As a monetary authority, Central Bank has as objectives the implementation of the monetary policy, prudential supervision and supervision of commercial banks. In the current financial crisis and its effects on the global economy, it is discussed more and more the issue that the Central Bank has to involve in ensuring financial stability. This paper proposes a logical analysis of theoretical and practical foundations which support the necessity of Central Bank involvement in order to ensure the financial stability, the reasons and limits of its actions.

Keywords: global financial crisis; price stability; financial stability; monetary stability; macroeconomic balance; prudential supervision; risk management; monetary policy objective (search for similar items in EconPapers)
JEL-codes: E52 E58 G01 (search for similar items in EconPapers)
Date: 2011
References: Add references at CitEc
Citations:

Downloads: (external link)
http://stec.univ-ovidius.ro/html/anale/RO/cuprins%20rezumate/volum2011p2.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ovi:oviste:v:xi:y:2011:i:9:p:1181-1185

Access Statistics for this article

Ovidius University Annals, Economic Sciences Series is currently edited by Spatariu Cerasela

More articles in Ovidius University Annals, Economic Sciences Series from Ovidius University of Constantza, Faculty of Economic Sciences Contact information at EDIRC.
Bibliographic data for series maintained by Gheorghiu Gabriela ().