 CENTRAL BANKS AND FINANCIAL MARKETS. ADJUSTMENTS TO A NEW REALITYJournal of Financial and Monetary Economics, 2017, vol. 4, issue 1, 211-216 Abstract: Following the recent financial turmoil, the theories and paradigms based on the efficiency and capacity of self-regulation of markets, have been much discussed. In the new created context, economies depend on central banks that by their power to print money provide a quick response to crises. Increasing dominance of the monetary policy and the transformation of more and more central banks into institutions with very wide scope open new debates on the authority, prudence and independence of central banks. Monetary policy has supported the financial markets for the past 8-9 years, but the direction has gradually begun to change. However, there are different trends and actions at the level of the globally representative central banks. Financial markets have become more and more dependent on central bank support, and their room for manoeuvre has diminished. Continuing this situation as public confidence in central banks is called into question may have serious consequences for the financial markets and the economy in general. Keywords: central banks; financial markets; monetary policy (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:vls:rojfme:v:4:y:2017:i:1:p:211-216 Access Statistics for this article More articles in Journal of Financial and Monetary Economics from Centre of Financial and Monetary Research "Victor Slavescu" Contact information at EDIRC. |
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