Considerations On The Unconventional Monetary Policy In Central And East European Countries

Over more than a decade after the outbreak of the recent financial crisis, we can say that its effects are still visible in the economic world. In order to overcome this crisis, central banks had to rethink the interaction between the financial economy and the real economy and they started to use a series of monetary policies that were considered unconventional. This paper aims to identify the most important unconventional monetary strategies used by a series of central banks from Central and East Europe. The first part of this paper focuses on identifying the unconventional monetary strategies used word-wide, while the second part tries to identify if the Central and East European central banks have used unconventional monetary policies and if they did, to point out which were the main unconventional monetary policy tools they have used. Another purpose of this paper is to identify the effects that the introduction of this kind of unconventional monetary policies had on the economy. It can be concluded that, even though most of the countries have overcome the shocks caused by the outbreak of the recent financial crisis, their current state does not rise to the financial robustness they had back in 2007.