CONTEXT OF ECONOMIC POLICY AND THE CURRENT FINANCIAL AND ECONOMIC CRISIS

The objective of the article is to identify impact of economic policy implications on current financial and economic crisis. The analysis examines a hypothesis that the main causes of financial and economic crisis include unbalanced developments of the macroeconomic sphere as well as existing weaknesses of banking systems, which often do not evolve in line with the development of economy fundamentals. The article is going to inspect three areas: (i) What development trends and economic policy were registered in the pre-crisis period in order to identify the main causes of economic fluctuations of economy; (ii) How economic policies responded to the course of the financial and economic crisis; (iii) What was the effect financial crisis had on the real economy development? The main task for after-crisis periods is to improve setting of monetary and fiscal policy, bank risk management system and also system for monitoring and analysing the business cycle.