LEGAL AND ECONOMIC ASPECTS OF MONETARY REGULATION OF THE EUROPEAN SYSTEM OF CENTRAL BANKS

Abstract

Monetary regulation is one of the most important components of government policy. The monetary regulation policy of the European Central Bank has undergone important transformations over the past ten years as a result of measures that were taken in response to the global financial crisis of 2008. Today the main problem of the ECB is not inflation, but stimulation of the post-crisis development of European countries. As a result, many new elements have been added to the ideology and practice of monetary regulation. Moreover, new challenges, such as a pandemic, are prompting the ECB to seek new means of influencing financial markets and, ultimately, the real sector of the economy. The paper presents the modern system of monetary regulation in the EU, characterizes its structure and legal status. The consequences of the application of unconventional measures of monetary regulation in the EU in the period after the 2008 crisis and during the COVID 19 crisis were determined. The effectiveness of the ECB's actions in overcoming the crisis was analyzed. On the example of the decision of the Federal Constitutional Court of Germany, the reasons were identified and the consequences of the conflict between the EU legislation and national legislation in the issue of the jurisdiction of monetary regulation were assessed. © 2021 University of Zagreb Faculty of Economics and Business. All rights reserved.