Open AccessMACROPRUDENTIAL AND MONETARY POLICY TRANSMISSION ISSUES
Author(s) -
Nino Zhorzhikashvili
Publication year - 2021
Publication title -
globalizac'ia da biznesi
Language(s) - English
Resource type - Journals
eISSN - 2449-2612
pISSN - 2449-2396
DOI - 10.35945/gb.2021.11.009
Subject(s) - monetary policy , financial stability , inflation (cosmology) , economics , financial crisis , monetary economics , financial system , inflation targeting , international economics , macroeconomics , physics , theoretical physics
Before the global financial crisis, it was widely believed in academic circles, that there was a conflict (inflation / f inancial stability) between monetary policy and prudential policy, which justified the separation of monetary and prudential functions. Due to this approach, a significant trend of segregation of functions was observed in some countries. Weaknesses of this approach became apparent after the crisis, thus countries actively began to adopt macroprudential policy integrated with monetary policy, which ultimately increases the effectiveness of both policies in terms of achieving the stability of country's economic, banking and financial sectors