Risk management in different monetary policy. The importance of issuing money in order to cover primary budget deficit

摘要

The actual global financial crisis puts a lot of challenges for the monetary policy that should remains consistent, credible and effective. In the crisis period, the monetary policy strategy was based on the following aspects. First, it was important to maintain the price stability. The response of the monetary policy during the financial crisis was focused on supporting banks in the fulfillment of their major role to provide credit to the real economy. All these measures have been fully consistent with the major objective of ensuring price stability. The exit from these special measures is gradually. The role of asset prices in the conduct of modern monetary policy in turbulent periods was proved again as very important both for recovery after crisis and also to prevent another future financial crisis. Regarding the monetary policy, after this global crisis there are several lessons learn from the causes and the risk management in turbulent periods. The central banks should have a more clear strategy and a better framework for communication. Monetary policy strategy should allow the risks to price stability considering also the imbalances in both domestic and global markets mixed with the new role of asset prices in monetary policy management.