The dilemmas of macroeconomic management: Impact on global financial stability

Abstract

The global financial system have been changed qualitatively during the ten years after global financial crisis. Slow growth of the world economy amid low interest rates become macro-economically important, defining conditions for sustainable economic growth and development in the future. In its turn, macroeconomic management has a significant impact on global financial stability. In this regard, the academic interest in the subject is increasing. There is a need to uncover and describe the latent challenges to financial stability arising as a result of the policy of the ZIRP (zero interest rate policy), changes in the direction of price movements in the global economy, the intensification of protectionism and politicization of international economic relations. The authors propose to study these issues on the basis of the “dilemma of macroeconomic regulation” concept. The implementation of this methodological instrument allows for a fresh take on the duality of macroeconomic regulation in conditions of increasing complexity of linkages and dependencies between all participants of the global economic process. This article is aimed at identifying the dilemmas of macroeconomic regulation, emerging from the specific context of the post-crisis period, as well as at the analysis of their impact on the prospects of global financial stability. The identification is based on the system analysis, the idea that ensuring the global financial stability in the post-crisis period requires consideration of dilemmas of macroeconomic regulation is confirmed.