Financial and monetary policy coordination in the time of financial and economic crises "Analytical study of some of the financial and economic crises in the period 1929 -2008"

Abstract

This study shows the correlation between the economic and financial crises, and the role of the effects of each of the formulas (whether financial or monitory) on the macro-economic variables, by the financial and monetary dimension. Based on the previous correlation and causality between many of the financial and monetary macroeconomic variables. Highlight clearly the importance of combining financial and monetary policies to control the crises with its different formulations. We will try through this study, highlight the economic policies that used in the crises time, through addressing to some of the financial and economic crises, the start of the crisis Black Thursday in 1929, and the crisis of the Internet bubble at the beginning of the third millennium, through the Asian crisis in 1997. We focused our analysis on the most important aspects related to instruments of monetary policy both on inject liquidity or changes in interest rates, or combinations of fiscal policy tools. Finally, the crisis of American mortgages among the most important solutions based on the depth of coordination between financial and monetary policies through government spending and inject liquidity changes, and pursue a policy of Keynesian liquidity trap.