CONSIDERATIONS REGARDING THE MOST IMPORTANT CRISIS OF THE 21st CENTURY

This article aims to introduce the concept of financial stability and to identify the most important crises that have occurred since 2000, both at a global and at an European level, in order to identify the measures taken by central banks as a result of the outbreak of those crises. Throughout time, world economies have been subjected to events that have drastically changed the attitude of central banks and have had significant effects on the economic environment. After the outbreak of the financial crisis of 2007-2008, central banks adopted a series of expansionary monetary policies in order to support the banking system and/or to avoid a strong economic downturn. However, despite the measures taken by central banks (extending the conventional monetary policy instruments) to stimulate the economic growth, they have proved to be ineffective therefore central banks had to introduce a series of unconventional monetary policy instruments. The second part of this article focuses on the European Debt Crisis while the third part focuses on the actual pandemic crisis and the measures taken by the central banks in order to prevent an even bigger economic crisis