1 Introduction The global financial crisis (GFC) underlined the importance of financial stability. Monetarypolicy proved to be insufficient in safeguarding the stability of the financial system on its own, as well as might have additionally fuelled
market operations. From the perspective of the monetarypolicy what matters is the fact that the instruments' liquidity influences the smooth functioning of the entire financial network, the amount of new investments and the balance sheets of all
enormous sums from the state budget. The fiscal expansion was counterbalanced by restrictive monetarypolicy of the MNB in the form of raising the rate of interest, but it did not stop the households, the non-financial sector and the banks to borrow from
This paper identifies and analyses the impact of European integration on the structure and characteristics of the modern monetary law, with a special emphasis on the characteristics of the monetary system of Serbia. A particular problem with monetary sovereignty analysis is the external effects, which are reflected in the EMU attempt to expand its authority over the territory of the Member States. This is particularly evident in the case of the candidate countries, which must harmonize their financial legislations with the acquis communautaire. Monetary policy is fully centralized at the European Union level, so Serbian lawmakers must make the necessary derogations of monetary standards in order to facilitate future accession to EMU – primarily the provisions Law of Central Bank, Law on Public Debt Management and the Foreign Exchange Act.
Covid-19 pandemic in 2020. These examples demonstrate that the Eurozone itself is an inconsistent MSTL, not a well-functioning OSTL regime. Countries pursue the same goal (the same currency with the same monetarypolicy and macroeconomic and fiscal
transparent monetarypolicies tend to exhibit better financial stability. There have been numerous studies on financial policy reforms following the crises. Given the argument that financial liberalisation without prudential regulation often causes financial
the market economy.
The reasons for this disconnect are largely two: tax policy in recent decades and recent monetarypolicy. It would be impossible to discuss those policies in detail here. Therefore, we shall limit ourselves to some rather
2017 ). (German reservations were later rejected by the European Court of Justice which acknowledged that the OMT was needed to maintain an effective monetarypolicy transmission.) The OMT provides two key insights for our paper. First, it highlights