Browsing by Author "Malendra, Denis"

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Discordances between fiscal policy and monetary policy – major issue for the emergent countries
("Victor Slăvescu" Centre for Financial and Monetary Research, 2016) Cociug, Victoria; Malendra, Denis
This is a topic on which there is an abundance of literature. Books are filled with information on the topic of the interaction between monetary and fiscal policies, which is one of the key, but also one of the more complex, relationships in economic theory. With the role of the central bank lawyer in mind, the discussion below will address the issue from one specific angle, namely the relevance of fiscal policy for central bankers. In the last few years‘ papers have begun to analyze optimal monetary and fiscal policy in models incorporating nominal rigidities where social welfare is derived from the utility of agents. This article examines whether this analysis provides support for the consensus assignment, where monetary policy controls demand and inflation and fiscal policy controls government debt. In this article, we review positive and normative issues in the interaction between monetary and fiscal policy, with an emphasis on how views on policy coordination have changed over the last years. On the positive side, no cooperative games between a government and its central bank have given way to an examination of the requirements on monetary and fiscal policy to provide a stable nominal anchor. On the normative side, cooperative solutions have given way to emergency loans allocations. The central theme throughout is on the optimal degree of price stability and on the coordination of monetary and fiscal policy that is necessary to achieve it.
Treatmeant of large exposures regime in macroprudential approach vs microprudential – the Republic of Moldova example
("Victor Slăvescu" Centre for Financial and Monetary Research, 2017) Cociug, Victoria; Malendra, Denis
Banking service market challenges managing compliance costs in the same time, and diversifying in front of the clients through innovation of products and services, which needs a higher level of analysis to be adequately compliant and to ensure a profitable and sustainable model of business. Moreover, Moldovan credit institutions are facing a challenge in managing their balance sheets through the perspective of assets quality and rising incomes and with the consolidation of banking sector tendency, which induce the need of adaptation for all market players. In this context, the demand for products with big values and risks from the clients are restricted by prudential norms are being ready to be adopted. For this reasons, this article aims to study how the norms regarding the treatment of large exposures limits the capacity of lending, and to gain bigger profits for small and medium banks, thus the regulations favor big banks and creating even a bigger disruption on a competitive market.