THE MONETARY POLICY AND THE FINANCIAL STABILITY IN THE CONTEXT OF GLOBALIZATION

It is unanimously acknowledged at an international level that, for the long term, the stability of prices is the fundamental objective of the monetary policy of central banks. The international financial crises that have occurred in the context of financial globalization have determined central banks from various countries to give special attention to the promotion of financial stability. This attitude is due to the fact that a stable and solid financial system provides the prerequisites for the implementation of an efficient monetary policy, which contributes to the achievement of the fundamental objective, that of ensuring the stability of the prices. This paper aims at emphasizing the relationship between the stability of the prices and financial stability in the context of financial globalization, and the extent to which central banks can, via the monetary policy they promote, can contribute to the achievement of these objectives.