Influence of different monetary regimes on financial stability in see countries
AbstractThis paper aims to address different monetary regimes in SEE countries and its performances regarding financial stability in the context of the current financial crisis. SEE countries seem to have been more pre-crisis vulnerable to financial and real shocks. Five countries are observed in this paper – Serbia, Croatia, Montenegro, FYR Macedonia and Bulgaria. Nowadays international capital flows are very important in determining performances of different monetary regimes. It shows the level of financial integration which is important element of the Mundell-Fleming`s model and the related principle of impossible trinity. In today’s economy with most countries being financially integrated, they are moving to either pure float or monetary union, and analysis in the SEE region supported the bipolar view regarding the exchange rate regime. However, the emergence of the crisis has caused a significant drop in FDI in these countries. This once more highlights the standpoint that FDI can be described as a double-edge sward. The massive inflow of foreign capital that made the boom years possible is now the source of a very large problem for the region because this region is highly indebted externally. Authors try to find the best definition of systemic financial risk and financial (in)stability in order to consider the key aspects of macro prudential policymaking in the SEE region. Recommendation in the paper for all SEE economies is immediate adoption of the Basel III standards with the argument to give macro prudential policy mandate to an explicit authority to conduct efficient and timely decision making.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Central bank of Montenegro in its journal Journal of Central banking Theory and Practice.
Volume (Year): 1 (2012)
Issue (Month): 1 ()
Contact details of provider:
Postal: Bulevar Svetog Petra Cetinjskog br. 6, 81000 Podgorica
Phone: +382 20 403 136
Fax: +382 20 664 029
Web page: http://www.cbcg.me/eng/index.php?bl=journal
More information through EDIRC
FDI; public debt; credit rating; monetary union; financial stability; macroprudential policy;
Find related papers by JEL classification:
- F31 - International Economics - - International Finance - - - Foreign Exchange
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Max Watson & Valerie Herzberg, 2007. "Economic Convergence in South-Eastern Europe: Will the Financial Sector deliver?," SUERF Studies, SUERF - The European Money and Finance Forum, number 2007/2 edited by Morten Balling, March.
- Max Watson & Valerie Herzberg, 2007. "Economic Convergence in South-Eastern Europe: Will the Financial Sector deliver?," Chapters in SUERF Studies, SUERF - The European Money and Finance Forum.
- Olivier J. Blanchard & Mitali Das & Hamid Faruqee, 2010. "The Initial Impact of the Crisis on Emerging Market Countries," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 41(1 (Spring), pages 263-323.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.