Croatia in the Second Stage of Transition, 1994-1999
| Publication | Working Papers |
|---|---|
| Issue | W - 1 |
| Authors | Velimir Šonje and Boris Vujčić |
| Date | December 1999 |
| JEL | E65, P2 |
| ISSN | 1334-0131 |
Keywords
working papers, transition, international comparisons, economic policy
Summary
The paper attempts to summarize the important aspects of the transition experience in Croatia, focusing upon the second stage of transition, 1994-1999. The presentation is not historical, but rather links similar problems using international data comparisons and occasionally cross-section econometrics. Many topics are briefly surveyed: 1) relation between money growth, inflation, exchange rate regime and currency substitution; 2) determinants and costs of banking crisis; 3) relation between banking supervision, central bank credibility and exchange rate regime; 4) underlying reasons for the emergence of arrears in economy; 5) relationship between monetary and fiscal policy; 6) reasons for poor export performance and high external imbalance in Croatia; and 7) some basic labor market developments. The paper also draws some policy conclusions.