Monetary Management And Control Under Uncertainty And Crisis

Constant exposure of economy to shocks hinders the process of creating monetary policy. Since effects of shocks are sometimes impossible to predict, central banks face difficulties in making decisions and operating. According to one view, central banks, in the absence of a stable financial system as a constituent part of its functions, cannot achieve monetary stability. According to another opinion, the supposition, often mentioned in the context of the current crisis, that monetary policy in crisis situations cannot be efficient is wrong. There are no guarantees that central banks will be able to cope with a burst of a bubble. The claim that world central bankers have saved the global economy from a collapse can be interpreted as equal to their role in creating the current crisis.