scholarly journals MONETARY POLICY BEFORE AND AFTER THE FINANCIAL CRISIS. EVIDENCE FROM INFLATION TARGETING COUNTRIES IN CENTRAL AND EASTERN EUROPE

2017 ◽  
Author(s):  
Ioana Plescau
Keyword(s):  
Monetary Policy ◽  
Comparative Analysis ◽  
Financial Crisis ◽  
Eastern Europe ◽  
Inflation Targeting ◽  
Central And Eastern Europe ◽  
Central Banks ◽  
Review Of The Literature ◽  
Before And After ◽  
The 2008 Financial Crisis

The aim of our study is to review the monetary framework and instruments adopted by the inflation-targeting countries in Central and Eastern Europe, from 2005-ownwards. We employ a qualitative approach and develop a comparative analysis of the changes that occurred in the conduct of monetary policy after the 2008 financial crisis. The results highlight that the central banks in our sample have adjusted their policy in order to counteract the effects of the financial crisis and adopt different instruments to fulfill this aim. The contribution of our study is twofold. First, we offer a review of the literature regarding the adjustments in the monetary policy after the crisis and their effectiveness. Second, we make a comparative analysis between countries with respect to the path of monetary policy from conventional to unconventional and assess the (potential) way back.

scholarly journals Monetary Policy Before and After the Financial Crisis and Its Economic and Legislative Impacts – Case of The Czech Republic

2019 ◽  
Author(s):  
Liběna Černohorská ◽  
Jana Janderová ◽  
Veronika Procházková
Keyword(s):  
Monetary Policy ◽  
Czech Republic ◽  
Financial Crisis ◽  
Interest Rates ◽  
Foreign Exchange ◽  
Inflation Targeting ◽  
Constitutional Court ◽  
The Czech Republic ◽  
Before And After ◽  
National Economies

The article analyses monetary policy response to the world financial crisis and focuses more closely on the monetary policy of the Czech National Bank (CNB) at this time. Until 2007, the implementation of monetary policy in OECD countries was perceived very positively. However, the financial crisis has clearly shown that the world’s financial markets are highly interconnected, and this can have a major impact on individual national economies. Therefore, the monetary policy strategy has changed from a policy based on the so-called flexible inflation targeting. Ensuring price stability is emphasised as part of the monetary policy role of the CNB in the provisions of Article 98 of the Constitution, in the Czech Republic. CNB is perceived as one of the most independent central banks, the contituional dimension of its independence being confirmed by case law of the Czech Constitutional Court. In response to the financial crisis, CNB was forced to pursue unconventional monetary policy in the form of foreign exchange interventions between 2013 and 2017. However, during the time period of these interventions, CNB policy did not lead to achievement of the inflation target. Following the completion of foreign exchange interventions, CNB returned to conventional monetary policy through interest rates.

Rethinking Central Bank Accountability in Uncertain Times

2016 ◽  
Vol 30 (2) ◽  
pp. 215-232 ◽  
Author(s):  
Jacqueline Best
Keyword(s):  
Monetary Policy ◽  
Financial Crisis ◽  
Central Bank ◽  
Sovereign Debt ◽  
Global Economy ◽  
Technical Problem ◽  
Central Banks ◽  
Simple Rules ◽  
The 2008 Financial Crisis ◽  
Central Bankers

There has been little discussion of central bank accountability in recent decades because monetary policy has been seen as an essentially technical problem. Yet, during the 2008 financial crisis and the economic dislocations that ensued, central banks gained considerably in authority—bailing out failing institutions, using unorthodox monetary tools, and wading into sovereign debt crises. At the same time, the financial crisis and the slow recovery that has followed have revealed just how uncertain and volatile the global economy can be—a situation that poses new dilemmas for monetary policy. This article looks at the existing model of central bank accountability and finds it wanting in this new, more uncertain environment. Because the principle of central bank independence involves a very narrow set of objectives—generally focused on an inflation target—and very few opportunities for sanction, the main mechanism for accountability is that provided by the publication of information about the bank's deliberations and activities. In an era of increased economic uncertainty, when central bankers themselves admit that simple rules and models are no longer adequate, a narrow, transparency-based form of accountability is not sufficient. I suggest that we need a thicker, more robust form of accountability that fosters more deliberation and debate, ensures that central banks are answerable to their publics, and broadens the standards by which they are judged.

scholarly journals Zjawisko firm zombie i jego przyczyny

Ekonomia ◽  
2019 ◽  
Vol 25 (3) ◽  
pp. 9-23
Author(s):  
Daniel Góra
Keyword(s):  
Economic Growth ◽  
Monetary Policy ◽  
Financial Crisis ◽  
Banking Sector ◽  
Central Banks ◽  
Capital Formation ◽  
Entry Barriers ◽  
Review Of The Literature ◽  
Insolvency Law ◽  
Bank For International Settlements

The causes of the existence of zombie firms The aim of this paper is to specify and describe the factors that contribute to the prevalence of zombie firms, defined as old, unprofitable, nearly insolvent firms which normally would exit the market. Based on the review of the literature, mostly published by the Organization for Economic Co-operation and Development OECD, the Bank for International Settlements BIS and central banks, we conclude that the main causes of the rise of zombie firms in the last 10–20 years have been loose monetary policy especially after the outbreak of the financial crisis of 2007–2008, weak banking sector, overbanking of economies, government subsidies to enterprises and weaknesses of insolvency law. We consider the zombification of economies as a highly important issue since zombie companies could be lowering the pace of capital formation, productivity and economic growth by raising entry barriers, curbing Schumpeterian creative destruction and misallocating capital.

INFLATION TARGETING: IT'S NOT BROKE, IT DOESN'T NEED FIXING, BUT CAN IT SURVIVE?

2010 ◽  
Vol 01 (01) ◽  
pp. 59-80
Author(s):  
PIERRE L. SIKLOS
Keyword(s):  
Monetary Policy ◽  
Inflation Targeting ◽  
Global Financial Crisis ◽  
Emerging Market ◽  
Asset Price ◽  
Central Banks ◽  
Economic Downturn ◽  
Price Increases ◽  
The Global Financial Crisis ◽  
Nominal Anchor

Until the end of 2005 there were few outward signs that the inflation targeting (IT) monetary policy strategy was deemed fragile or that the likelihood of abandoning it was high. In light of the severe economic downturn and the global financial crisis that has afflicted most economies around the world since at least 2008, it is worth reconsidering the question of the fragility of the inflation targeting regime. This paper reprises the approach followed in Siklos (2008) but adds important new twists. For example, the present study asks whether the continued survival of IT is due to the fact that some of the central banks in question did take account of changes in financial stress. The answer is no. Indeed, many central banks are seen as enablers of rapid asset price increases. The lesson, however, is not that inflation targeting needs to be repaired. Instead, refinements should be considered to the existing inflation targeting strategy which has evolved considerably since it was first introduced in New Zealand 20 years ago. Most notably, there should be continued emphasis on inflation as the primary nominal anchor of monetary policy, especially in emerging market economies (EME), even if additional duties are assigned to central banks in response to recent events.

Political thought in Central and Eastern Europe: The open society, its friends, and enemies*

2021 ◽  
pp. 147488512110496
Author(s):  
Aurelian Craiutu ◽  
Stefan Kolev
Keyword(s):  
Eastern Europe ◽  
Review Essay ◽  
Political Thought ◽  
Central And Eastern Europe ◽  
The Political ◽  
Open Society ◽  
Illiberal Democracy ◽  
Before And After ◽  
Recent Trends ◽  
The Relationship

A review essay of key works and trends in the political thought of Central and Eastern Europe, before and after 1989. The topics examined include the nature of the 1989 velvet revolutions in the region, debates on civil society, democratization, the relationship between politics, economics, and culture, nationalism, legal reform, feminism, and “illiberal democracy.” The review essay concludes with an assessment of the most recent trends in the region.

Korea's Post-Crisis Monetary Policy Reforms

2005 ◽  
Vol 08 (04) ◽  
pp. 707-731 ◽  
Author(s):  
Donghyun Park ◽  
Junggun Oh
Keyword(s):  
Monetary Policy ◽  
Financial Crisis ◽  
Inflation Targeting ◽  
Financial System ◽  
Capital Inflows ◽  
Policy Reforms ◽  
The Future

Korea's financial crisis of 1997–1998 was brought about by the unsustainable combination of large capital inflows and an inefficient financial system. The Bank of Korea contributed to the crisis primarily through its failures as the regulator of the financial system rather than as the conductor of monetary policy. Our paper explores the role of the two major monetary policy reforms Korea has implemented in response to the crisis — the establishment of a new financial regulator and the adoption of inflation targeting — in Korea's efforts to build a stronger and more efficient financial system, thereby preventing crises in the future.

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