engleski

Exchange Rate Policy and Trade Balance in Croatia

The exchange rate policy in Croatia experienced a rollercoaster ride in past 20 years, which had a profound effect on macroeconomic variables in general and on the current account in particular. The 20-year period analyzed here can be divided into four respective periods. The first is from independence until the successful stabilization program (1991-1994) ; the second is after stabilization until completion of the privatization major banks (1994-2002) ; the third is the period in which majority of banks were already privatized by foreign banks (2002-2006), a time that was also marked by steady inflow of foreign capital through banks, steady decrease of interest rates, and high growth of loans ; and the final period is marked by the recession that peaked in 2009 in Croatia (2006-2009).

exchange rate; trade balance; Croatia

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