2015RePEc: Research Papers in EconomicsOpen access

MONETARY POLICY AGAINST FINANCIAL STABILITY IN THE REPUBLIC OF MOLDOVA

Olga Timofei

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Abstract

The financial stability of a country is one of the most current and most discussed issues worldwide. Until the global financial crisis, the financial stability achievement was strongly subordinated to monetary stability, which is considered the priority task of the central bank. But the last evolutions have shown that financial stability involves certain more complicated problems of measurement and definition, more of those that belong to central bank proficiency. The paper's aim is to analyze the ability of NBMs’ monetary policy, to maintain the financial stability of RM within the limits of its objectives and duties, in order to highlight the causes of financial instability and in providing solutions overcoming them.

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The financial stability of a country is one of the most current and most discussed issues worldwide. Until the global financial crisis, the financial stability achievement was strongly subordinated to monetary stability, which is considered the priority task of the central bank. But the last evolutions have shown that financial stability involves certain more complicated problems of measurement and definition, more of those that belong to central bank proficiency. The paper's aim is to analyze the ability of NBMs’ monetary policy, to maintain the financial stability of RM within the limits of its objectives and duties, in order to highlight the causes of financial instability and in providing solutions overcoming them.

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Available abstract

The financial stability of a country is one of the most current and most discussed issues worldwide. Until the global financial crisis, the financial stability achievement was strongly subordinated to monetary stability, which is considered the priority task of the central bank. But the last evolutions have shown that financial stability involves certain more complicated problems of measurement and definition, more of those that belong to central bank proficiency. The paper's aim is to analyze the ability of NBMs’ monetary policy, to maintain the financial stability of RM within the limits of its objectives and duties, in order to highlight the causes of financial instability and in providing solutions overcoming them.

Key concepts: Financial stability, Monetary policy, Order (exchange), Stability (learning theory), Financial crisis, Financial system, Economics, Finance

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