CHARACTERISTICS OF CONTEMPORARY MONETARY POLICIES OF MAJOR CENTRAL BANKS IN THE POST-CRISIS DOMESTIC AND INTERNATIONAL CONTEXT

Camelia Milea

Journal of Financial and Monetary Economics, 2017, vol. 4, issue 1, 164-172

Abstract: The global financial crisis has brought about the rethinking of monetary policy by central banks in developed and developing countries, in the sense of adding unconventional measures to traditional instruments. Among the reasons for this trend, there are, mainly, the distress of the abilities of standard measures to stimulate the economy in many developed countries, as well as the need to ensure financial stability and the functioning of financial markets. The analysis73 shows that, in general, the analysed central banks have set as objective of monetary policy an inflation target of 2% by actions which should support sustainable economic growth, high employment rates and moderate long-term interest rates. Concerning the monetary policy measures enacted, it is noticed the pursuit of the monetary policy conduct from the previous years, namely the tendency to diminish the reference interest rate and the use of the unconventional measures of monetary policy in the context of the trends and forecasts related to the global economic and financial developments , of the conditions in the labour market, of the analysis of the inflationary pressures and expectations, given the general weakness of the real economy and the monetary dynamics, but also amid the high uncertainty on the prospects of the US and the European Union economies, due to the possible consequences of the Great Britain‘s exit from the EU.

Keywords: unconventional measures; objective of monetary policy; reference interest rate; sustainable economic growth (search for similar items in EconPapers)
JEL-codes: E52 E58 G01 (search for similar items in EconPapers)
Date: 2017
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