BALMUMCU, Özgür Muğla Sıtkı Koçman Üniversitesi - İktisadi ve İdari Bilimler Fakültesi - İktisat Bölümü, Turkey

MONETARY POLICY ISSUES DURING GLOBAL FINANCIAL CRISIS

15061

The rapid financialization of the world economy for the last twenty years led to frequent and widespread economic crisis, and protracted recessions. The main problem experienced by the global economy and the specific countries is not the crisis itself but the prolonged economic recession which is caused by the economic crisis. The criticism toward central banks and monetary policies surged because of the perpetuation of crisis, its impact on many countries and the ineffectiveness of the monetary policies implemented during the crisis. Therefore, it has been more and more difficult to implement proper monetary policies in the dilemmas of inflation, production and finance. Central Banks seems to be ineffective managing the fluctuations and the crisis. Central banks try to take into account real and financial variables which are more flexible and effective as policy tools. Therefore, it can be argued that world economy might experience crisis in the future because policymakers are reluctant to take necessary measures. Based on the result of the article, we can contend that monetary policies will again be incompetent during the would-be crisis.

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Global Crisis , Monetary Policy , New Consensus , Filexible Inflation Targeting , Macroprudential Policy

Ege Strategic Research Journal

55