Одрживост стратегије монетарне политике Народне Банке Србије
Suistainability Of The Monetary Policy Strategy Of The NBS

Summary/Abstract: Monetary policy is a very important part of economic policy. However it is not omnipotent in solving problems in the financial and economic sphere. There are a lot of obstacles in monetary policy conduct. The most important of them are: gray economy and timelag problem. Central banks, through changing money supply, cannot directly influence basic goals (economic growth, price stability, high employment). Therefore, they are forced to use operational and intermediate targets if they want to raise their efficiency. On the central banks' menu, there are many alternatives: monetary aggregates targeting, interest rates targeting, inflation rate targeting, exchange rate targeting, nominal income targeting. Which strategy would be chosen depends on many factors: economic and financial systems' stability, the achieved economic growth, central banks' level of independence, priority goals of economic policy, monetary policy makers' credibility. The aim of this paper is to show the efforts of the monetary authorities in Serbia tо choose the optimal monetary strategy, and we will try to answer the question of whether the chosen strategy is sustainable in our circumstances.

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