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Monetary Policy In The Context Of The European Sovereign Debts

Author

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  • CRISTE, Adina

    (Centre for Financial and Monetary Research “Victor Slăvescu”, Romanian Academy)

Abstract

The crisis of the sovereign debts in Europe challenged the monetary policy of the European Central Bank (ECB) to maintain price stability and to encourage the credits for economic activities under the conditions of a rather uncertain environment with precautious investors and under the conditions of faltering fiscal sustainability of the Euro Area member states. The paper approaches the issue of the monetary effects generated by the crisis of the sovereign debts within the Eurozone starting with a brief description of the European sovereign bonds market, starting with the period before the euro project implementing. The particularities of the monetary transmission mechanism caused by the effects of the sovereign bonds crisis reveal specific constraints of the current monetary policy. The article is subject to the complex issues related to the monetary integration process and the operation of the optimum currency areas.

Suggested Citation

  • CRISTE, Adina, 2012. "Monetary Policy In The Context Of The European Sovereign Debts," Studii Financiare (Financial Studies), Centre of Financial and Monetary Research "Victor Slavescu", vol. 16(4), pages 23-34.
  • Handle: RePEc:vls:finstu:v:16:y:2012:i:4:p:23-34
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    File URL: http://www.icfm.ro/RePEc/vls/vls_pdf/vol16i4p23-34.pdf
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    References listed on IDEAS

    as
    1. Paul De Grauwe, 2014. "The Governance of a Fragile Eurozone," World Scientific Book Chapters, in: Exchange Rates and Global Financial Policies, chapter 12, pages 297-320, World Scientific Publishing Co. Pte. Ltd..
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    More about this item

    Keywords

    price stability; monetary transmission mechanism; sovereign bonds;
    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
    • H63 - Public Economics - - National Budget, Deficit, and Debt - - - Debt; Debt Management; Sovereign Debt

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