RISKS AND CONSTRAINTS FOR THE MONETARY STABILITY
Starting from the definition according to which monetary stability requires an appropriate level of liquidity in an economy with dynamic objectives, of growth and job creation, non-inflationary in terms of price stability, based on the analysis of the effects of some relevant economic phenomena and...
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| Format: | Article |
| Language: | English |
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“Victor Slăvescu” Centre for Financial and Monetary Research
2013-09-01
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| Series: | Financial Studies |
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| Online Access: | http://fs.icfm.ro/vol17i3p52-62.pdf |
| _version_ | 1797705758231494656 |
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| author | Camelia MILEA |
| author_facet | Camelia MILEA |
| author_sort | Camelia MILEA |
| collection | DOAJ |
| description | Starting from the definition according to which monetary stability requires an appropriate level of liquidity in an economy with dynamic objectives, of growth and job creation, non-inflationary in terms of price stability, based on the analysis of the effects of some relevant economic phenomena and on the economic literature, in this article, the author has highlighted some of the risks to monetary stability. One of the major risks is represented by the loss of its instruments, i.e. the instruments for liquidity management, through monetary and exchange rate policies. Another important risk is represented by the capital fluctuation due to various shocks: exchange rate, political, financial and capital account liberalization. Also, as a result of the analysis of relevant studies and of the effects of the European integration in terms of monetary stability, the author has shown the elements on which depends monetary stability. Among these, there are: the existence of an institutional framework with a clear goal and a proper degree of responsibility, strong operational independence of monetary policy, monetary policy implementation with a view to ensuring an appropriate balance between discipline and discretion, the level of the interest rate of monetary policy, the efficiency of the transmission mechanism of monetary policy, the existence of a viable and stable financial system, the existence of enough instruments at hand for the central bank, the structure and soundness of the financial and banking system.
The paper is a capitalization of the research project “Global Risks for the Financial and Monetary Stability. Implications for Romania and European Union” elaborated in 2013, at “Victor Slăvescu” Centre for Financial and Monetary Research. |
| first_indexed | 2024-03-12T05:41:07Z |
| format | Article |
| id | doaj.art-04bc18e4d6124f7e9cfc23d4111e0349 |
| institution | Directory Open Access Journal |
| issn | 2066-6071 2066-6071 |
| language | English |
| last_indexed | 2024-03-12T05:41:07Z |
| publishDate | 2013-09-01 |
| publisher | “Victor Slăvescu” Centre for Financial and Monetary Research |
| record_format | Article |
| series | Financial Studies |
| spelling | doaj.art-04bc18e4d6124f7e9cfc23d4111e03492023-09-03T05:59:03Zeng“Victor Slăvescu” Centre for Financial and Monetary ResearchFinancial Studies2066-60712066-60712013-09-011735262RISKS AND CONSTRAINTS FOR THE MONETARY STABILITYCamelia MILEA0“Victor Slăvescu” Centre for Financial and Monetary ResearchStarting from the definition according to which monetary stability requires an appropriate level of liquidity in an economy with dynamic objectives, of growth and job creation, non-inflationary in terms of price stability, based on the analysis of the effects of some relevant economic phenomena and on the economic literature, in this article, the author has highlighted some of the risks to monetary stability. One of the major risks is represented by the loss of its instruments, i.e. the instruments for liquidity management, through monetary and exchange rate policies. Another important risk is represented by the capital fluctuation due to various shocks: exchange rate, political, financial and capital account liberalization. Also, as a result of the analysis of relevant studies and of the effects of the European integration in terms of monetary stability, the author has shown the elements on which depends monetary stability. Among these, there are: the existence of an institutional framework with a clear goal and a proper degree of responsibility, strong operational independence of monetary policy, monetary policy implementation with a view to ensuring an appropriate balance between discipline and discretion, the level of the interest rate of monetary policy, the efficiency of the transmission mechanism of monetary policy, the existence of a viable and stable financial system, the existence of enough instruments at hand for the central bank, the structure and soundness of the financial and banking system. The paper is a capitalization of the research project “Global Risks for the Financial and Monetary Stability. Implications for Romania and European Union” elaborated in 2013, at “Victor Slăvescu” Centre for Financial and Monetary Research.http://fs.icfm.ro/vol17i3p52-62.pdfliquiditymonetary policybanking and financial system |
| spellingShingle | Camelia MILEA RISKS AND CONSTRAINTS FOR THE MONETARY STABILITY Financial Studies liquidity monetary policy banking and financial system |
| title | RISKS AND CONSTRAINTS FOR THE MONETARY STABILITY |
| title_full | RISKS AND CONSTRAINTS FOR THE MONETARY STABILITY |
| title_fullStr | RISKS AND CONSTRAINTS FOR THE MONETARY STABILITY |
| title_full_unstemmed | RISKS AND CONSTRAINTS FOR THE MONETARY STABILITY |
| title_short | RISKS AND CONSTRAINTS FOR THE MONETARY STABILITY |
| title_sort | risks and constraints for the monetary stability |
| topic | liquidity monetary policy banking and financial system |
| url | http://fs.icfm.ro/vol17i3p52-62.pdf |
| work_keys_str_mv | AT cameliamilea risksandconstraintsforthemonetarystability |