THE ROLE OF MONETARY AND MACROPRUDENTIAL POLICIES IN PURSUIT OF FINANCIAL STABILITY

Mirjana Jemović, Srđan Marinković

DOI Number
-
First page
131
Last page
143

Abstract


During the recent financial crisis, there have been significant real and fiscal implications that have renewed concerns of the regulatory agencies for financial stability. The stability of the financial system implies its resistance, which must be set up in advance and installed along the entire lifetime of financial institutions. The authors of this study have firstly presented the concept and conceptual questions of financial stability, and secondly, they have perceived the role of relevant policies in preserving financial stability. Special emphasis is given to the role of monetary and macroprudential policies and their conditionality in the realization of the same objective. Since the policy of preserving financial stability is a particularly sensitive area within the European Union (EU), this paper has summed up the current framework for financial stability, as well as the efforts towards the creation of the banking union.


Keywords

crisis, financial stability, macroprudential policy, monetary policy, banking union

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