INSTRUMENTI KOJE CENTRALNE BANKE KORISTE U VREME FINANSIJSKE KRIZE

Abstract

Тhe paper is devoted to unconventional monetary policy instruments used by central banks during the 2007/2008 financial crisis. The experience of the central bank of Japan, which first started with these measures at the end of the 90s of the 20th century, was also presented, as well as the experiences of the FED and the ECB during the global financial crisis of 2007/2008. The main reason for the application of unconventional instruments is the fact that short-term interest rates are very close to zero, and even such low interest rates cannot stimulate consumption and investments. Because of the liquidity trap and ineffective conventional monetary policies, central banks resort to unconventional instruments.