A NEW PARADIGM OF MODERN CENTRAL BANKING

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Abstract

The changes in the modern monetary policy, which took place at the beginning of the twenty-first century, in response to the global financial crisis led to the transformation of the place and the role of central banks. The strategic aim of the central monetary institutions has become preventing financial instability. So far, central banks have defined financial stability as a public good, which took care independently of other monetary purposes (Pyka, 2010). Unconventional monetary policy resulted in changes the global central banking. The aim of the study is to identify a new paradigm of the role and place of the central bank in the financial system and its new responsibilities, aimed at countering financial instability.

Keywords: Modern Monetary Policy, Central Bank, Financial Stability, Banking Sector Instability, Macro-Prudential Policy

How to cite this paper: Szunke, A. (2013). A new paradigm of modern central banking [Conference issue]. Journal of Governance and Regulation, 2(2), 75-78. https://doi.org/10.22495/jgr_v2_i2_p6