US monetary policy in the global monetary and financial instability

Abstract

The paper analyzes US monetary policy and its impact on the world monetary system in the modern economic crisis. Currently the U.S. economy is overrun by debt, which leads to a reduction of lending and lower consumer demand. In order to prevent a defl ationary decrease of the money supply in the economy USA fi nancial authorities have to pursue a policy of a quantitative easing, as well as have to increase government programs spending. Such measures resulted in permanent reduction of the US dollar against other currencies. The instability of the world dominant currency negatively aff ects the world monetary system and international fi nancial markets.