Monetary policy: a journey from micro to macroprudential framework

Abstract

This paper aims to address the issue of adjusting monetary policy to the implementation of new macroprudential framework, with reference to the challenges accompanying this hassle. The analysis performed in this paper shows that the financial system is characterized by high sensitivity to the pressures existing in international financial markets, so macroprudential policy and its instruments support investor protection, the limiting of systemic risk and financial stability, being defined through a high flexibility, increased transparency and lower costs of implementation. In this paper it has been observed the link between monetary policy and prudential policy, suggesting the relationship of interdependence and focusing on the challenges faced by this policy. The methodological approach used in order to develop this paper starts with a literature review, which establishes the role and the place of this research. The analysis conducted in this paper is based on various reports, studies and research and emphasizes the vital importance of macroprudential policy design and implementation of macroeconomic and financial imbalances prevention and financial stability.