MONETARY POLICY UNDER THE CONDITIONS OF THE GLOBAL FINANCIAL CRISIS

Gheorghe Manolescu
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Gheorghe Manolescu: Spiru Haret University, Bucharest

Studii Financiare (Financial Studies), 2009, vol. 13, issue 1, 109-120

Abstract: Modern economies are characterized by endemic financial crisis, a good performance of the financial systems requiring the guarantee of the deposits and the regulating authority of the central bank. The current economic and financial crisis has as real causes the increase in the prices of certain goods, such as food products, the global economic conjuncture, which preceded the crisis, characterized by global financial shocks and tensions. The propagation of real risks concerning world economic and financial disequilibria requires a political approach of the crisis by observing some requirements such as: implementing, worldwide, coherent and efficient answers of economic and monetary policies; considering as main priority, in the countries affected by the crisis, the restoration of market operation; fast re-establishing the trend of economic growth, the financial sector exacerbating credit; and especially, moderating financial disturbances. In order to bear up with the future challenges of the global crisis it is necessary to establish the following lines of defense: fiscal policy, monetary policy and direct intervention. In a globalized world, where apparently separate crisis can become global fast, the answer must be global, coordinated, flexible and expeditious. From world outlook, the challenges of the global financial crisis for the monetary policy can be touched under the following angles: challenges concerning elaborating and implementing monetary policy, the impact of global crisis on national economies, the disruption of monetary policy actions, failing a proper coordination and without the projection of a prudent policy.

Keywords: global economic conjuncture; global economic and financial crisis; liquidity; global inflation; world unemployment; volatility; real risk; political approach. (search for similar items in EconPapers)
JEL-codes: E31 E52 F36 (search for similar items in EconPapers)
Date: 2009
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