Can monetary policy substantially support development—especially when it comes to Southeast Europe? This is the key question in Dejan Šoškić’s article entitled “Monetary Policy and Development.” Serbia’s former National Bank Governor (2010-2012) argues in the CIRSD VIP Blog that “adequate liquidity with relative price stability, credible monetary policy authorities and high level of confidence in national currency and financial institutions and markets is one of the basic pillars of sustainable economic development.”
Šoškić further discusses goals put forth in monetary policy such as employment, financial and price stability. He cites those goals as often conflicting and adds that “insisting firmly on one of them could spell economic disaster.” In support of this claim he listed the examples of the United Kingdom, France and Germany in their “golden standard era”—the term often used to depict the aftermath of WWI.
The entire content of the article can be accessed here
VIP Blog on Sustainable Development of Southeast Europe
