MONETARY POLICY FORCE EFFECT BY MEANS OF BANKS MONEY CREATION

Victoria Cociug () and Olga Timofei

Studii Financiare (Financial Studies), 2014, vol. 18, issue 2, 18-28

Abstract: In the context of modern economy, banks play an essential role for sustainable growth, by ensuring economy with financial resources and driving impulses of monetary policy to economy. Monetary authorities influence significantly the bank's ability to fulfill this role. Thus, to achieve macroeconomic objectives, there is promoted particular monetary policy and are implemented various practical regulations for banks. In this article, we want to identify the existing relationship between monetary policy followed by the authorities and the ability of banks to create money with its impact on various practical regulations.

Keywords: monetary policy; money creation; bank regulation and supervision survey (search for similar items in EconPapers)
JEL-codes: G21 G28 (search for similar items in EconPapers)
Date: 2014
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