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Study On The Correlation Between Price Stability And Financial Stability In The Evolution Of The Economy


  • Mugurel G. S. Pop



With the globalization of financial flows and the increasingly high degree of financial markets integration, financial stability has become a topic of study particularly important for financial institutions and researchers alike. Society’s net benefits overwhelmingly depend on the effectiveness of the financial system which becomes a valuable public asset and an essential feature of such a system is stability. Price stability and financial stability are crucial for the proper functioning of an economy, price stability is the primary objective of monetary policy and it examines the connections between price stability and financial stability. Price stability is essential for achieving financial stability in a country, while to achieve these two objectives it’s also necessary a good collaboration between the political and financial factors. Price stability is both an end in itself as well as a means for monetary policy, as it contributes to achieving a sustainable economic growth and macroeconomic stability.

Suggested Citation

  • Mugurel G. S. Pop, 2016. "Study On The Correlation Between Price Stability And Financial Stability In The Evolution Of The Economy," Knowledge Horizons - Economics, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 8(2), pages 157-162, June.
  • Handle: RePEc:khe:journl:v:8:y:2016:i:2:p:157-162

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    Monetary activity; banking system; banking activity; stability; prices;

    JEL classification:

    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies


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