MONETARY STRATEGIES DURING AND AFTER THE GREAT RECESSION: ECB VS NBS
Stefan Stojkov - Faculty of Economics in Subotica, University of Novi Sad, Subotica, Serbia
DOI: https://doi.org/10.31410/Balkans.JETSS.2022.5.1.24-35
Stefan Stojkov - Faculty of Economics in Subotica, University of Novi Sad, Subotica, Serbia
DOI: https://doi.org/10.31410/Balkans.JETSS.2022.5.1.24-35
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Balkans Journal of Emerging Trends in Social Sciences, (2022) , Vol 5, No 1
ISSN: 2620-164X |
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Abstract: The last few decades of the world economic structure have been characterized by a trend of global convergence in the context of the exponential interconnectedness of initially divergent financial markets. With deeper trade and financial integration, nationally oriented monetary policy is confronted with serious obstacles and limitations, having in mind higher vulnerability to the external crisis shocks. The focus of this analysis is the heterogeneous monetary responses of the ECB and the NBS to the same external shocks induced by the Great 2008 Recession. The main findings suggest that both monetary systems should rely on discretionary policy taking current macroeconomic health into account. In contrast to the monetary responses to the Global Recession, the analysis shows that the reactions to the COVID-19 crisis remained faithful to unorthodox measures in ECB’s case but unrelated in NBS’s case.
Keywords: Monetary policy, Quantitative easing, ECB, NBS, Inflation targeting.
JEL Classification E42 · E52 · E58
Keywords: Monetary policy, Quantitative easing, ECB, NBS, Inflation targeting.
JEL Classification E42 · E52 · E58
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Lazarević-Moravčević, M., Kamenković, S., (2021) The Impact of the Covid-19 Crisis on the Serbian Economy - Consequences and Recovery, Economic Analysis, 54(2), pp. 41-54, https://doi.org/10.28934/ea.21.54.2.pp41-54
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Narodna Banka Srbije, 2021, Paket-ekonomske-mere-covid19, Retrived from: https://nbs.rs/en/drugi-nivo-navigacije/pres/covid19/, Accessed September 2021
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Šoškić, D. (2015) Inflation targeting challenges: Case of Serbia, Economic Annals, Volume LX, No. 204 / January – March 2015, pp. 17-18, https://doi.org/10.2298/EKA1504007S
Stiglitz, E.J. (2017) The Fundamental Flaws in the Euro Zone Framework, N. de Costa Cabral et al. (eds.), The Euro and the Crisis, Financial and Monetary Policy Studies, https://doi.org/10.1007/978-3-319-45710-9_2
REFERENCES
Andrade, P., Breckenfelder, J., Fiore, F., Karadi, P., Tristani, O. (2016) The ECB’s asset purchase programme: an early assessment, ECB Working Paper, No. 1956, pp. 8-10, European Central Bank (ECB), Frankfurt a. M., http://www.doi.org/10.2866/290081
Astin, J. (1999) The European Union Harmonised Indices of Consumer Prices, Statistical Journal of the United Nations Economic Commission for Europe, 16(2-3), pp. 123-135, http://www.doi.org/10.3233/SJU-1999-162-302
Beckmann, J., Fiedler, S., Gern, K., Kooths, S., Quast, J., Wolters, M., (2020) The ECB’s Asset Purchase Programmes: Effectiveness, Risks, Alternatives, Monetary Dialogue Papers, https://www.europarl.europa.eu/cmsdata/211391/2_KIEL%20final.pdf, Accessed September 2020
Beirne, J., Dalitz, L., Ejsing, J., Grothe, M., Manganelli, S., Monar, F., Sahel, B., Sušec, M., Tapking, J., Vong, T. (2011) The impact of the Eurosystem’s covered bond purchase programme on the primary and secondary markets, Occasional Paper Series, No. 122, January 2011.
Beker Pucar, E., Glavaški, O., (2020) Eurozone non-optimality: An OCA based analysis, Ekonomika, Volume 66, April – June 2020, pp. 1-15, http://www.doi.org/10.5937/ekonomika2002001B (in Serbian)
Benigno, P., Canofari, P., Di Bartolomeo, G., Messori, M., (2021) The ECB’s Measures in Support of the COVID-19 Crisis, Monetary Dialogue Papers, March 2021, https://www.europarl.europa.eu/cmsdata/230559/LUISS_formatted.pdf, Accessed September 2020
Bernanke, B., & Mishkin, F. (1992). Central Bank Behavior and the Strategy of Monetary Policy: Observations from Six Industrialized Countries, National Bureau of Economic Research, Working Paper No. 4082, http://www.nber.org/chapters/c10993, Accessed September 2020
Cúrdia, V., & Woodford, M. (2010) Conventional and Unconventional Monetary Policy, Federal Reserve Bank of St. Louis Review, July/August 2010, 92(4), pp. 261-64.
DeMertzis, M., & Wolff, B.G. (2016) The effectiveness of the European Central Bank’s asset purchase programme, Bruegel policy contribution, Issue: 2016/10, June 2016.
Dragutinović, D. (2008) Power and weakness of monetary policy in striking a balance between balance-of-payments and inflation-related objectives. u: Working Papers Series, No. 12, Belgrade: National Bank of Serbia
Đukić, M., Momčilović, J., Trajčev, Lj. (2011) Structure and use of the medium-term projection model of the National Bank of Serbia, Economic Annals, Volume LVI, No. 188/ January – March 2011, pp. 32-61, https://doi.org/10.2298/EKA1188032D
European Central Bank (2006) The Implementation of Monetary policy in the Euro Area, Retrieved from: https://www.ecb.europa.eu/pub/pdf/other/gendoc2006en.pdf, Accessed September 2020
European Parliament (2021) The ECB’s Monetary Policy Response to the COVID-19 Crisis, Retrieved from: https://www.europarl.europa.eu/RegData/etudes/BRIE/2020/648787/IPOL_BRI(2020)648787_EN.pdf, Accessed September 2020
Eurostat, 2020, Retrieved from: https://ec.europa.eu/eurostat/web/exchange-and-interest-rates/data/database, Accessed September 2020
Fabris, J. (2015) Inflation Targeting in Serbia, Journal of Central Banking Theory and Practice 4(2), May 2015, pp. 65-67, https://doi.org/10.1515/jcbtp-2015-0009
Fabris, N. (2006) Inflation Targeting With Special Review on Application in Serbia, Panoeconomicus, 53(4), pp. 389-405, https://doi.org/10.2298/PAN0604389F
Gali, J., & Monacelli., T. (2005) Monetary Policy and Exchange Rate Volatility in a Small Open Economy, Review of Economic Studies, No. 72, pp. 707-734
Jovancai, A., & Stakić, N. (2013) Non-Standard Measures of Monetary policy, Bankarstvo, Volume 1, pp. 58-75.
Kapetanios, G., Mumtaz, H., Stevens, I., Theodoridis, K. (2012) Assessing the economy-wide effects of quantitative easing, The Economic Journal, 122(564), pp. 316-347, https://doi.org/10.1111/j.1468-0297.2012.02555.x
Kearns, J., Schrimpf, A., Xia, F.D. (2018) Explaining Monetary Spillovers: The Matrix Reloaded, BIS Working Papers, No. 757, Retrieved from: https://www.bis.org/publ/work757.pdf, Accessed September 2020
Koijen, R., Koulischer, F., Nguyen, B., Yogo, M., (2018) Inspecting the Machanism of Quantitative Easing in the Euro Area, Journal of Financial Economics, 140(1), pp. 1-20, https://doi.org/10.1016/j.jfineco.2020.11.006
Krishnamurthy, A., Vissing-Jorgensen, A., (2011) The Effects of Quantitative Easing on Interest Rates: Channels and Implications for Policy, NBER Working Paper Series, Working Paper 17555, https://doi.org/10.3386/w17555
Lazarević-Moravčević, M., Kamenković, S., (2021) The Impact of the Covid-19 Crisis on the Serbian Economy - Consequences and Recovery, Economic Analysis, 54(2), pp. 41-54, https://doi.org/10.28934/ea.21.54.2.pp41-54
Momirović D., Simonović Z., Kostić A., (2021) ECB Monetary policy during COVID-19, Ekonomika, Volume 67, April – June 2021, pp. 13-22, https://doi.org/10.5937/ekonomika2102001P
Narodna Banka Srbije, 2021, Paket-ekonomske-mere-covid19, Retrived from: https://nbs.rs/en/drugi-nivo-navigacije/pres/covid19/, Accessed September 2021
Narodna Banka Srbije, 2021, Retrieved from: https://nbs.rs/sr/drugi-nivo-navigacije/publikacije-i-istrazivanja/IOI/, Accessed September 2021
Savić, N., Lazarević, J., Vjetrov, A., Marinković, E., (2021) Serbian economy recovery in the post-COVID-19 era: Cluster approach, Ekonomika preduzeća, 69(3-4), pp. 243-259, https://doi.org/10.5937/EKOPRE2103243S
Šoškić, D. (2015) Inflation targeting challenges: Case of Serbia, Economic Annals, Volume LX, No. 204 / January – March 2015, pp. 17-18, https://doi.org/10.2298/EKA1504007S
Stiglitz, E.J. (2017) The Fundamental Flaws in the Euro Zone Framework, N. de Costa Cabral et al. (eds.), The Euro and the Crisis, Financial and Monetary Policy Studies, https://doi.org/10.1007/978-3-319-45710-9_2
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