CAUSES OF THE WORLD FINANCIAL CRISIS OF 2007 -2009 AND THEIR IMPLICATIONS FOR MONETARY POLICY (Przyczyny swiatowego kryzysu finansowego w latach 2007 - 2009 i implikacje dla efektywnosci ) polityki pienieznej

The purpose of this paper is two-fold. First, it attempts to determine the causes of the financial crisis that occurred between 2007 and 2009. Second, the author gives an answer to the question of what systemic changes should be introduced to avoid a similar scenario in future. To pinpoint the causes of the crisis, a method based on verification of scientific hypotheses is used. The process of verification allows one to assert that the subprime crisis which started in the USA was caused by both introduction of the National Homeownership Strategy in 1993 and too low interest rates. As for the second problem, a good solution can be the introduction of a new monetary policy instrument. Central bank's new interest rate should determine a minimum level of mortgage loans regardless of the price of money on the interbank market.