The Monetary Policy from the Perspective of the Economic Power Centres’ Restructuring

Abstract

Our paper analyses the financial implications of monetary redistribution of economic power centres, following the EU enlargement and consolidation, the assertion of strong emerging economies such as those of China, India and Brazil. We analyse the strong impact of the introduction of the euro on the system's reserve currency and the multiple effects of the assertion of emerging economies on the world market. We reveal that the transformation of emerging powers into real planetary powers led to a redistribution of the global decision centres and as well as changing the positions currently held by some powerful countries in the monetary and international financial organizations (IMF, World Bank etc.), U.S. Western European countries currently holding up a privileged status within these organizations. We emphasize the restructuring perspective of the concerned institutions and the registration of some important changes in their strategy. We highlight the fact that the financial and economic power held by the emerging states increases the role of the monetary financial institutions in these countries on the international credit market, as well as contributing to the achievement of financial assistance to underdeveloped countries becomes more consistent, hence the increasing political influence on the states concerned. We capture in context also the changes that are emerging in the area of fiscal policy of a growing number of states, following the positive experience of the emerging countries, which have avoided systematic recording of large budget deficits and public debt remained into bearable limits. It is possible that one might also take the lesson about the positive role of extensive and rigorous regulation of the financial, banking and money markets.