MACROPRUDENTIAL AND MONETARY POLICY TRANSMISSION ISSUES

ანოტაცია

  Before the global financial crisis, it was widely believed in academic circles, that there was a conflict (inflation / financial stability) between monetary policy and prudential policy, which justified the separation of monetary and prudential functions. Due to this approach, a significant trend of segregation of functions was observed in some countries. Weaknesses of this approach became apparent after the crisis, thus countries actively began to adopt macroprudential policy integrated with monetary policy, which ultimately increases the effectiveness of both policies in terms of achieving the stability of country's economic, banking and financial sectors.