MONETARY POLICY OF THE NATIONAL BANK OF SERBIA AFTER 2000: A RETROSPECTIVE

Abstract

The paper summarizes the instruments, measures and character of the monetary policy of the National Bank of Serbia in the period from 2000 to 2024. The work of the National Bank was observed through the introduction of certain instruments of monetary policy, changes in key variables and the adoption of strategic documents on the principles and goals of monetary policy. The character of the monetary policy was analyzed in terms of whether it was expansionary or restrictive. It was concluded that several periods can be distinguished in the work of the National Bank, which differ according to the strategic orientation and the most important goals of the monetary policy. Until 2008, these were commitment to macroeconomic stabilization, suppression of inflation and stabilization of the exchange rate. During the period of the global financial crisis in 2008-2009., the priority was to preserve the stability of the financial system and build a macroprudential framework. This was followed by a longer period characterized by an expansive monetary policy, the encouragement of investment and credit activity, and the introduction of financial innovations. The reaction of the National Bank in conditions of increased global tensions and inflationary pressures after 2020 is described and it is concluded that the National Bank has successfully responded to all challenges from the international environment. In the end, a turn in monetary policy after 2022 in the direction of increased restivity was discussed, as well as the latest measures aimed at preserving the stability of the financial system and encouraging economic growth and development of the Republic of Serbia.