Abstract:

The nowadays global economic crisis has multiple effects, on various planes. The turbulences, formed originally by the collapse of so-called subprime loans system in the United States, spread worldwide via by the circuits of globalized financial markets. The situation tends to aggravate, creating a plurality of difficulties associated with sovereign debt, as a major issue that strongly threatens even the European monetary construction. From a social perspective, the most devastating effect is caused by companies and authorities needs in order to adjust their expenditures, with direct or propagated in terms of employment. From the economic policy point of view, might be tempting to try an attenuation of social issues, via the instruments of monetary policy. The paper analyzes theoretical possibilities and limitations of applying economic policy measurements in order to maintain the welfare state, in the terms of self-imposed restrictions in the field of monetary expansion.