Monetary policy in chosen countries used as a tool of fighting against the crisis caused by coronavirus

Abstract

The topic of this research is the analysis of the monetary policy and its tools used in fighting the crisis which was caused by the pandemic of the COVID 19. The analysis focuses on three countries: the Republic of Serbia, the Republic of Croatia, and Bosnia and Herzegovina. These countries were chosen because of the specifics in leading the monetary policies of their Governments and Central banks of theirs. The paper gives insight into different tools of monetary policy that are used in the standard issues, but also tools that are used in times of crises, as was with the coronavirus situation. The main focus is on the decisions of the European Central Bank that were brought upon during the time of the pandemic, and on the program of PEPP, as an odd monetary policy which is guided towards immediate buying in the case of a pandemic. The research gives the conclusion that all the measures and tools used have significantly made a difference in preventing the bigger disorders in the economies of the analyzed countries.

Keywords

• monetary policy
• inflation
• the stability of the prices
• moderate interest rate
• maximum employment