UDC 338.23:336.74
Biblid: 0543-3657, 68 (2017)
Vol. 68, No 1165, pp. 86-101
DOI:

Original scientific paper
Received: 19 Dec 2016
Accepted: 18 Jan 2017

MONETARY POLICY IN CONDITIONS OF SLOW GLOBAL RECOVERY

Vujić Jelena (Narodna banka Srbije, Beograd), jelena.r.vujic@gmail.com

Uncertain recovery of the global economy, geopolitical risks, future prices of oil and raw materials, volatile capital movements and low-interest rates determine current monetary policy to a large extent. Accommodative monetary policies and exit from such policies are the main challenges for monetary authorities. Although accommodative policies and low-interest rates following the outbreak of the crisis affected credit growth and capital inflow, their long-term application affects banks’ profitability and the emergence of new risks and hinders the return to conventional measures. However, the unconventional monetary policy is expected to continue and the exit from quantitative easing will be gradual, consistent with achieving the inflation target and sustainable economic growth. In such circumstances the support from fiscal policy and structural reforms is crucial.

Keywords: monetary policy, unconventional measures, the financial crisis, financial intermediation, the cross-border flows, lending, risks