IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this article

Monetary Stability Versus Financial Stability In Adjusting The Real Economy

Listed author(s):
  • Boldea Bogdan


    (West University of Timisoara, Faculty of Economics and Business Administration)

  • Gheorghe Roxana-Maria


    (Faculty of Economics and Business Administration)

  • Ivanovici Daniela-Cecilia


    (Faculty of Economics and Business Administration)

  • Strezariu Iulia Ana-Maria


Nowadays, in the economic theory and practice, there's commonly held idea that the primary objective of monetary policy should be price stability. However, the possibility of achieving this goal depends on the development and stability of the financial system. Even though financial stability represents a prerequisite for reaching the objective of price stability, the relationship manifests itself in reverse also. In the long term, the two objectives support and reinforce each other, but in the short term, there may occur certain incompatibilities, thus resulting in the central bank's dilemma of abandoning one in favor of the other. This paper aims to investigate precisely the circumstances in which the policies pursued to ensure price stability can cause or worsen financial stability.

If 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.

File URL:
Download Restriction: no

Article provided by University of Oradea, Faculty of Economics in its journal The Journal of the Faculty of Economics - Economic.

Volume (Year): 1 (2010)
Issue (Month): 2 (December)
Pages: 678-684

in new window

Handle: RePEc:ora:journl:v:1:y:2010:i:2:p:678-684
Contact details of provider: Postal:
Universitatii str. 1, Office F209, 410087 Oradea, Bihor

Phone: +40259408799
Fax: 004 0259 408409
Web page:

More information through EDIRC

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:ora:journl:v:1:y:2010:i:2:p:678-684. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Catalin ZMOLE)

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.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.