THE ROLE OF MONETARY POLICY IN ENSURING MACROECONOMIC STABILITY

The causes of the crisis of the common currency of the European Union can be seen as the collapse of Europe itself through the use of a common currency that unites 18 countries into a consistent and regulated system. Greece, Portugal, Spain, Italy and Ireland were on the verge of financial bankruptcy, which could have caused the collapse of the entire financial system of Europe and other global markets. The European Union has shown that it has the strength to cope with the financial crisis that has shaken it. The necessity of harmonizing monetary policy at the level of the European Union and fiscal policy at the level of each of its members has proven to be a necessary measure so that the common currency can continue to function. The paper deals with the issue of the public debt crisis of the European Union member states, the mismatch between monetary and fiscal policies.