Theoretical analysis of the monetary policy in the European Monetary Union

The Great economic crisis influenced the need to reconsider ECB strategy and open some conceptual theoretical dilemmas. The first one is about the need to raise inflation target from 2% to 4% in order to create more space in the period of financial and economic disorder. Also in the theory is considered the possibility to use aggregate price level as the target. The third dilemma is connected with targeting assets market respectively property price (like stocks and bonds) in the manner of targeting inflation rate in normal circumstances, while property prices would be followed in extraordinary crisis circumstances. ECB uses the set of market-oriented indirect instruments in order to actualize price stability as primary goal. As the integration of EU bank system became an obstacle to approach relying on responsibility decentralization for performing bank supervision, its reform is being implemented. It leads to establishing the new supervisory framework for EU - European System of Financial Supervision and European Systemic Risk Board. Respectively, under the influence of the Great economic crises is established Single Supervisory Mechanism for banks, what is the first step towards bank union.