THE IMPACT OF MONETARY INNOVATIONS ON THE FINANCIAL CRISIS

Petrović Pero (Ph.D., Research Professor, Institute of International Politics and Economics, Belgrade, Serbia), pera@diplomacy.bg.ac.rs
Jović Željko (Ph.D. candidate, Faculty of Economics, Belgrade), Zeljko.Jovic@nbs.rs

Monetary effects have an impact on the financial aspect of creativity and innovation in financial markets, particularly in terms of financial crises. Money is not just an economic phenomenon than the total social facts, which chooses the way of life almost all people. Long monetary policy defined as a set of rules, regulations, measures and instruments which in the monetary sphere of social reproduction regulate the level, structure and dynamics of money supply and circulation of money in busy channels reprodukcije.Pošto monetary policy is the applied science area, which consists of emission, credit and foreign exchange policy, and is closely linked to fiscal policy, a financial or macroeconomic policy, is necessary to consider the financial effects of monetary and financial creativity, innovation, long-term strategic management in the context of these changes. The essence of financial innovation consists in a strong action to strengthen the market mechanism in the financial sector of the economy. There has been escalating money market instruments, provided that these instruments represent the substitute transaction of money. The process of financial innovation and creativity go three phases. At least three interrelated, phases.

Keywords: Monetary policy effects, creativity, innovation, money, financial instruments