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Financial Crisis and the Central Bank System

Author

Listed:
  • RICHARD POSPISIL

    (Associate Professor, Ph.D., Palacky University of Olomouc, CZECH REPUBLIC)

  • SERGHEI MĂRGULESCU

    (Professor, Ph.D., “Nicolae Titulescu“ University of Bucharest, 185 Calea Vacaresti, District 4, Bucharest, ROMANIA)

Abstract

The financial crisis that began in 2008 gradually developed into a global economic crisis and continues to this day. There is a lot of causes standing behind the creation, depth and process of the crisis, which is the deepest since the thirties of last centrury. One of the reasons can be found in the risky behavior of commercial banks, especially in the excessive lending of credits and mortgages. Its share on the financial crisis have central banks and their failure as the financial supervisory authority. But there is a lot of another causes of failures in the commercial banking system. And some of the causes lies outside the banking system and monetary policy. Its share of the blame has also become from state and its expenditure on the social policy.This article analyzes the role of the commercial banking system and the central banks on the financial crisis including prevention options and measures.

Suggested Citation

  • Richard Pospisil & Serghei Mărgulescu, 2015. "Financial Crisis and the Central Bank System," Global Economic Observer, "Nicolae Titulescu" University of Bucharest, Faculty of Economic Sciences;Institute for World Economy of the Romanian Academy, vol. 3(1), pages 154-159, May.
    • Handle: RePEc:ntu:ntugeo:vol3-iss1-15-154
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    References listed on IDEAS

    as
    1. Wicker,Elmus, 1996. "The Banking Panics of the Great Depression," Cambridge Books, Cambridge University Press, number 9780521562614.
    2. Douglas W. Diamond & Philip H. Dybvig, 2000. "Bank runs, deposit insurance, and liquidity," Quarterly Review, Federal Reserve Bank of Minneapolis, vol. 24(Win), pages 14-23.
    3. repec:aei:rpaper:30944 is not listed on IDEAS
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    More about this item

    Keywords

    Financial Cisis; Central Bank; Monetary policy; Money; Deficit.;
    All these keywords.

    JEL classification:

    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy

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