Contemporary Concept of Monetary Policy and Its Impact on Employment Policy and Serbia

The implementation of the appropriate monetary policy has great importance in the unemployment solving problem. The policy which is defined by the strategy of employment of European Union (2004), serves as an example of what is necessary to undertake on this way of economic revitalization in the country. The real way to solve unemployment under the influence of monetary policy and its instruments primarily benchmark interest rate is still in the process of crystallization in terms of shaping the field of economic theory of monetarism. One of the main guideline is the development of export policy with all the supporting institutional structure and the real capacity. Exports could be a positive lever to launch momentum of economic prosperity. In this case, monetary policy through the devaluation of national currency gives a positive impetus to macroeconomic aggregates developing. According to the latest research in the world in this field, it is known that the investment programs are of the utmost importance in this respect. Particular importance of the interest rate in the country and abroad because of its impact on capital flows. In the light of current global economic downturn seen in the medium to long term it is necessary for economic policy to have low reference interest rate in order to attract foreign direct investment. Bearing in mind the contradictions between economical goals it is of great importance to find the right measure for the pricing parameters (interest rate, exchange rate, inflation, wage).