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Optimal Monetary Policy: Theoretical And Practical Aspects

Author

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  • Victoria COCIUG

    (National Institute for Economic Research, The Academy of Sciences of Moldova, The Ministry of Education, Culture and Research, Republic of Moldova)

  • Olga HINEV

    (National Institute for Economic Research, The Academy of Sciences of Moldova, The Ministry of Education, Culture and Research, Republic of Moldova)

Abstract

This research approached the defining aspects of an optimal monetary policy framework, able to achieve the objective proposed by the central bank. The ensuring a monetary policy appropriate to the country's economic, financial and legal potential is currently a concern for most central banks that recognize the benefits of optimal monetary policy promotion. The definition of optimal monetary policy was outlined in terms of factors, criteria and associated impacts. The practical aspect of the paper focused on the assessment of the monetary policy framework on the international arena as well as on the one promoted by the National Bank of Moldova. Following the researches carried out, it was concluded that in order to adjust monetary policy to an optimum, the central bank of a particular country should take into account a complex of economic conjuncture, institutional and operational framework. Referring to the best international practices of the central banks in the field of monetary policy, we come with recommendations for the optimization of the monetary policy in the Republic of Moldova.

Suggested Citation

  • Victoria COCIUG & Olga HINEV, 2019. "Optimal Monetary Policy: Theoretical And Practical Aspects," Contemporary Economy Journal, Constantin Brancoveanu University, vol. 4(1), pages 55-65.
    • Handle: RePEc:brc:brccej:v:4:y:2019:i:1:p:55-65
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    central bank; inflation; monetary policy; inflation expectations;
    All these keywords.

    JEL classification:

    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies

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