SOFT MONETARY CENTRAL BANKING POLICY AND A PLAN FOR RESPONSIBLE DEVELOPMENT AS MAIN INSTRUMENTS OF THE IN-TERRENISTIST POLICY FOR ACTIVITY OF GROWTH IN GOSPEL IN POLAND

2018 ◽  
Vol 4 (2) ◽  
pp. 303-337
Author(s):  
Dariusz Prokopowicz
Keyword(s):  
Monetary Policy ◽  
Economic Policy ◽  
Financial Crisis ◽  
Global Financial Crisis ◽  
Developed Countries ◽  
Central Banking ◽  
Global Market ◽  
The Government ◽  
Business Entities ◽  
Polish Economy

At the beginning of the 1990s, due to the commercialization and privatization of many business entities, the processes of economic globalization of the Polish economy, including transformed financial markets, were intensifying. This globalization is determined by the increasing links between the Polish economy and the economic environment of other countries. These processes indicate that the economic crisis in the Eurozone has been seriously sought for several years, but the negative effects of the slowdown in economic development in some countries have remained. The development of the market financial system in Poland, which has been ongoing since the 1990s, has been slowed down when, since autumn 2008, the echoes of the global financial crisis have begun to enter the global market. In highly developed countries since the beginning of the financial crisis in 2008, the governments of individual countries in consultation with central banks undertook various anti-crisis measures and support for national banking systems. Also in this respect, one can notice many analogies in the relation of the economic situation of national economies, economic policy, including monetary policy and the state of the banking system. These analogies are observed when both developed and developing countries are taken within the comparative analysis. Due to the favorable situation in the Eurozone during the recent years, and the continuation of key aspects of economic growth there are rather positive scenarios for the development of the macroeconomic situation in Poland prevailing among economists. In Poland, since 2015, interventionist monetary policy has been supported by the proeconomic plans of the Plan for Responsible Development developed in the Ministry of Development. This plan, also known as Prime Minister Mateusz Morawiecki's plan, is a key solution that brings together many of the goals and tasks currently implemented by the government of the socio-economic policy called Economy Plus.

A SAFE MONETARY CENTRAL BANKING POLICY AS A SIGNIFICANT INSTRUMENT FOR LIQUIDITY MAINTENANCE IN THE FINANCIAL SYSTEM

2018 ◽  
Vol 8 (2) ◽  
pp. 123-125
Author(s):  
Dariusz Prokopowicz
Keyword(s):  
Monetary Policy ◽  
Financial Crisis ◽  
Interest Rates ◽  
Global Financial Crisis ◽  
Financial System ◽  
State Intervention ◽  
Developed Countries ◽  
Central Banking ◽  
Financial Crisis Of 2008 ◽  
The Global Financial Crisis

Currently, it is assumed that the global financial crisis of 2008 was effectively mastered and averted several years ago, but its sources have not been fully eliminated. The anti-crisis model of state intervention that was applied during the global financial crisis of 2008 was a modified Keynsian formula known from the 1930s, adapted to the realities of contemporary national economies. The main instrument of anti-crisis policy was the significant development of a mild monetary policy and interventionist measures aimed at reducing the risk of bankruptcy of enterprises and banking entities and stopping the decline in lending in banking systems. In developed countries, anti-crisis interventionist assistance programs for the financial system and pro-active interventionist measures were activated in order to stimulate significantly weakened economic growth. As part of pro-development state intervention activities, the Federal Reserve Bank applied a low monetary policy of low interest rates and a program for activating lending and maintaining liquidity in the financial system by financing the purchase from commercial banks of the most endangered assets. A few years later, the European Central Bank applied the same activities of activation monetary policy.

Global Financial Crisis and Its Impact on Russia

2009 ◽  
pp. 9-27 ◽  
Author(s):  
A. Kudrin
Keyword(s):  
Monetary Policy ◽  
Fiscal Policy ◽  
Financial Crisis ◽  
Central Bank ◽  
Global Financial Crisis ◽  
Developed Countries ◽  
Real Economy ◽  
Energy Prices ◽  
Russian Government ◽  
The Real

The article examines the causes of origin and manifestation of the current global financial crisis and the policies adopted in developed countries in 2007—2008 to deal with it. It considers the effects of the financial crisis on Russia’s economy and monetary policy of the Central Bank in the current conditions as well as the main guidelines for the fiscal policy under different energy prices. The measures for fighting the crisis that the Russian government and the Central Bank use to support the real economy are described.

scholarly journals Modeling Outcomes of Unconventional Monetary Policy

2019 ◽  
Vol 8 (4) ◽  
pp. 10263-10268
Keyword(s):  
Monetary Policy ◽  
Financial Crisis ◽  
Global Financial Crisis ◽  
Consumer Price Index ◽  
Developed Countries ◽  
Central Banks ◽  
Unconventional Monetary Policy ◽  
The Us ◽  
The Developed Countries ◽  
The Global Financial Crisis

The paper presents a study of the outcomes of the unconventional monetary policy methods that the central banks of developed countries have been applying during and after the global financial crisis. Before the crisis central banks used the interest rate policy as their main tool. But the recent financial crisis has demonstrated the inefficiency of traditional methods (especially after the base interest rate has reached zero). Therefore in response to the global financial crisis, central banks of many countries have taken unconventional measures to overcome the crisis. The paper aims to study the main outcomes of unconventional monetary policy measures of the developed countries and formulate the recommendations for the developing countries. The following objectives are being met in the paper:to reveal the essence of the main mechanisms for implementing the unconventional monetary policy; to evaluate the efficiency of unconventional monetary policy in the US, Japan, United Kingdom;to model the impact of monetary policy of the European Central bank on the consumer price index in the Eurozone countries. Research methods: method of comparative analysis is usedto evaluate the efficiency of the unconventional monetary policy in the US, Japan, European Union and the United Kingdom.The model of themonetary policy impact on the consumer price index is based on econometric analysis and is constructed using the least squares method. The studied model includes both traditional and non-traditional methods.Observation period - quarterly data from 1999 to the second quarter of 2019. The results of the analysis show that unconventional monetary policy methods of the central banks of the developed countries reached major goals - to prevent bankruptcies of large financial institutions in national economies. Moreover, the results of the suggested model show that the European Central Bank policy has also reached its inflation target that supposed to stimulate economic growth; the most significant effect is observed in the first years after the launch of an unconventional monetary policy. At the same time the unconventional tools of monetary policy stimulate the extreme increase of the securities prices, which led to the “overheating” of the US stock market and the EU national bonds markets with the negative yield on government securities of several countries, which may become a trigger for a new global crisis in the future. The result of the analysis of monetary policy in Ukraine shows the limitations of the use of non-traditional measures for the developing countries.

scholarly journals The World Financial Crisis and The Polish Economy

2019 ◽  
Vol 19(34) (1) ◽  
pp. 5-21
Author(s):  
Mieczysław Adamowicz ◽  
Tomasz Adamowicz
Keyword(s):  
Financial Crisis ◽  
Financial Institutions ◽  
Global Financial Crisis ◽  
Developed Countries ◽  
Financial Policy ◽  
The European Union ◽  
The World ◽  
The Subject ◽  
Polish Economy ◽  
The Global Financial Crisis

The subject of the work is to provide an overview of the global financial crisis in the years 2007-2011; its course, symptoms and effects in the world and in Poland. The work presents the causes and the sources of crisis as well as corrective measures taken by governments and financial institutions. The subject literature and information from different national and international financial institutions and organisations were used as a source of research materials and data for analysis. The financial crisis appeared in Poland with some delay and was less intensive than in other developed countries. Anti-crisis measures taken in Poland complied with the recommendations of the European Union and the International Monetary Fund. The measures taken by the Polish central bank concerned the institutional sphere, the manner in which the financial policy worked and how it was pursued, as well as the real sphere of the economy, including especially enterprises, households and public institutions.

European Policy Reactions to the Financial Crisis

2010 ◽  
pp. 191-218
Author(s):  
Carlo Panico ◽  
Francesco Purificato
Keyword(s):  
Monetary Policy ◽  
Economic Policy ◽  
Financial Crisis ◽  
Financial Institutions ◽  
Euro Area ◽  
Fiscal Policies ◽  
Productive Activity ◽  
European Policy ◽  
The Government ◽  
Recent Financial Crisis

The paper examines how economic policy have been carried out in Europe during the recent financial crisis. It focuses on the changes introduced in the operational procedures of monetary policy in the euro area in 2007 and 2008, pointing out that the objective of the authorities has been to respond to the liquidity needs of the monetary financial institutions, avoiding to loose control over M3. The paper argues that the interventions of the Eurosystem have produced satisfactory results and underlines the problems generated by the fall in productive activity and the need to face them with fiscal policies instruments. The inefficient forms of coordination between monetary and fiscal policies and the management of the government debt in some euro area countries are seen as the main sources of preoccupation for the evolution of the crisis.

scholarly journals China's Economic Policy in the Time of the Global Financial Crisis: Which Way Out?

2009 ◽  
Vol 38 (3) ◽  
pp. 165-181 ◽  
Author(s):  
Margot Schüller ◽  
Yun Schüler-Zhou
Keyword(s):  
Economic Growth ◽  
Financial Crisis ◽  
Global Financial Crisis ◽  
Developed Countries ◽  
Chinese Economy ◽  
Chinese Government ◽  
Current Crisis ◽  
The Government ◽  
The Global Financial Crisis ◽  
The Impact

This contribution analyses the impact of the global financial crisis on the Chinese economy and the policies implemented by the Chinese government to cope with it. We argue, first, that China has not been able to decouple its economic performance from that of the U.S. and other developed countries. Second, although economic growth in the second quarter of 2009 showed that the stimulus package is working, the current development does not seem to be sustainable. In order to avoid another round of overheating, the government needs to adjust its stimulus policy. Third, the current crisis offers opportunities to conduct necessary structural adjustments in favour of more market-based and innovative industries, more investment by private companies and a stronger role of private consumption in economic growth. Fourth, with the external demand from the OECD countries declining, Chinese export companies need to further diversify their international markets and reorient their production and sales strategies to some extent towards the domestic market.

scholarly journals Non-Standard Measures of the Monetary Policy – Mechanism for Overcoming Problems in the Implementation of the Neoliberal Concept of Monetary Policy During a Financial Crisis

2017 ◽  
Vol 55 (4) ◽  
pp. 465-480
Author(s):  
Andriana Milošević ◽  
Mirjana Jemović
Keyword(s):  
Monetary Policy ◽  
Interest Rate ◽  
Financial Crisis ◽  
Global Financial Crisis ◽  
Policy Instruments ◽  
Developed Countries ◽  
Central Banks ◽  
Liquidity Provision

AbstractAfter multiple decreases in the reference interest rate and its reaching zero bounds in certain countries during the recent global financial crisis, central banks in developed countries have started applying non-standard measures of monetary policy. This does not refer to introducing new monetary policy instruments, but rather to a certain relativisation within the framework of standard instruments, in terms of maturity of liquidity provision, collateral policy and counterparties. Therefore, the aim of this paper is to examine the role of non-standard measures of monetary policy as a mechanism for overcoming problems in the implementation of the neoliberal concept of monetary policy in the conditions of the financial crisis. The answer to this question is rather sensitive, considering the fact that the neoliberal concept was supported by the most developed countries, that is, in fact, their central banks were using non-standard instruments of monetary policy for the greatest part.

scholarly journals Adding rooms onto a house we love: Central banking after the Global Financial Crisis

2018 ◽  
Author(s):  
Juliet Johnson ◽  
Vincent Arel-Bundock ◽  
Vladislav Portniaguine
Keyword(s):  
Monetary Policy ◽  
Financial Crisis ◽  
Text Analysis ◽  
Global Financial Crisis ◽  
Central Banking ◽  
Computer Assisted ◽  
Policy Paradigm ◽  
Crisis Conditions ◽  
The Global Financial Crisis ◽  
Central Bankers

This article examines the extent to which central bankers have been willing and able to rethink their beliefs about monetary policy in the wake of the Global Financial Crisis. We show that despite the upheaval, the core pre-crisis monetary policy paradigm remains relatively intact: central bankers believe that they should primarily pursue price stability through targeting low inflation in a transparent manner, and that they need operational independence to achieve this goal. In a bid to address post-crisis conditions and maintain their credibility, however, central bankers have also layered new elements onto the old core. We document both the resilience of pre-crisis beliefs and the process of layering using computer-assisted text analysis and qualitative analysis of 13,586 speeches given between 1997 and 2017 by central bankers from around the world.

scholarly journals The Effect of Global Financial Crisis and Ethiopian Monetary Policy Measures: Review on the pre-and post-crisis scenario

2021 ◽  
Vol 15 (3) ◽  
pp. 17-35
Author(s):  
Adisu Fanta Bate
Keyword(s):  
Monetary Policy ◽  
Financial Crisis ◽  
Financial Market ◽  
Global Financial Crisis ◽  
African Countries ◽  
Mortgage Loans ◽  
Average Growth ◽  
The World ◽  
Policy Measures ◽  
The Government

Policymakers and leaders usually fail to grasp a sound lesson from the eco- nomic hurdles and crises countries face. This paper, thus, is intended to review and articulate the causes and effects of the global financial crisis, and how the Ethiopian monetary policy reacted and mitigated the crisis. The data for the analysis were collected from various sources including IMF, World Bank, National Bank of Ethiopia, and research articles from 2003 to 2019. The review reveals that even during the crisis in 2009, Ethiopia was among the top five fastest-growing countries in the world by an average of 10.5%, which is twice the average growth of Sub-Sahara African countries (5 %). It had become the seventh-largest economy in Africa and the 69th in the world with a GDP PPP of 118.2$ Billion as of 2013. Some of the main reasons for the con- tinued growth of the country amid crisis could be the desynchronization of the country’s financial market with the international financial market, an insig- nificant share of mortgage loans in domestic financial sector services, and high-level government-led infrastructure investment coupled with China’s economic alliance. However, the significant effect of the crisis was observed in the country’s exports, remittance, and Foreign Direct Investment (FDI). To shun the related inflationary effect, the government increased the minimum deposit interest rate, reserve, and liquidity requirements, and reinstated the credit restrictions. Also, the immediate alert was given to commercial banks to give proper attention in managing credit risk and reducing non-performing loans to below 5% and overdraft facilities. Given the above-mentioned facts, the monetary policy measures were effective to stabilize the economy & sus- tain the growth. In the end, the offshoots & setbacks of the unsynchronized financial market, government-led investment & fettered mortgage loans are addressed, and the way forward is marked out.

Monetary Policy and Global Financial Crisis: Methodological Aspects and Lessons for Russia

2008 ◽  
pp. 38-50 ◽  
Author(s):  
S. Andryushin ◽  
V. Burlachkov
Keyword(s):  
Monetary Policy ◽  
Financial Crisis ◽  
Financial Market ◽  
Global Financial Crisis ◽  
Central Banking ◽  
Integral Approach ◽  
Real Economy ◽  
Monetary Authorities ◽  
Methodological Aspects

The article develops the integral approach to formulating and realizing modern monetary policy which is capable to replace the traditional one, characterized as fragmental and non-systematic. Global financial crisis has revealed the absence of sufficient instruments of monetary policy and led to transformation of central banking functions. Monetary authorities are now not just lenders of last resort, but actually sponsors of financial market of last resort. The efficiency of monetary policy in future must be formed by its integrity (interactions of its objects) and close connections with real economy as well.

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