This paper presents how monetary policy, restricted only by price stability, may easily become propitious to asset inflation and eventually to a financial crisis. This risk is particularly high when the financial system lacks proper regulation and effective supervision. Hasty liberalization,...

The paper discusses the role of a dual currency system as a solution to problems experienced by some eurozone countries, especially Greece. The dual currency system as suggested by the author would consist of the euro and a reintroduced national currency, referred to as the “new drachma”....

This paper presents how monetary policy, restricted only by price stability, may easily become propitious to asset inflation and eventually to a financial crisis. This risk is particularly high when the financial system lacks proper regulation and effective supervision. Hasty liberalization,...

The aim of this paper is a reconsideration of some features of first and second generation models of currency crises and some conclusions from these models. In particular, theoretical justification for the existence of multiple equilibria is put under discussion in a broader context of...

The Federal Reserve System or the Fed is one of the most prestigious institutions in the world. Founded by the Federal Reserve Act in 1913, the Fed has the responsibility of setting the monetary policy of the U.S. The Fed’s actions affect the money supply in the U.S. market which has a direct...

The financial and economic crisis after year 2007 had an asymmetric impact on the countries of the European Union. While some reasons for this asymmetries are identified, some others remain far from being clearly and openly expressed. In particular, it is not quite obvious why some countries...

The aim of the paper is a comparison of economic policies in Estonia and Hungary before and during the recent financial and economic crisis and the results of the policies. Such a comparison is justified by a crucial similarity of the economies of both countries; they are small, open economies...

The subject of the article is the theoretical aspects of the effectiveness of the sterilized currency intervention as a means to stabilize the fixed rate. Effectiveness of currency intervention, especially sterilized, is the subject of continuous controversy the resolution of which is searched...