The monetary macroprudential policy stance in safeguarding financial stability. The case of Romania

During the last decades, Central banks have been preoccupied to address financial market stability by complementing the traditional microprudential policies with a macroprudential approach that allows a holistic diagnosis and treatment of systemic vulnerabilities by deploying specific instruments meant to counter financial risks. The paper discusses the effectiveness of the monetary macroprudential policy pursued by The Romanian Central Bank to ensure financial stability under the threat of contagion induced by the global financial crises. The paper concludes that timely, countercyclical macroprudential policy measures are able to maintain the balance between stability and efficiency of the financial market as prerequisites of economic growth. (C) 2015 The Authors. Published by Elsevier B.V.