Republic of Croatia: Selected Issues and Statistical Appendix
August 12, 2004
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This Selected Issues and Statistical Appendix paper analyzes monetary transmission in Croatia. The evidence analyzed in this paper supports the view that monetary policy in Croatia is not an effective tool for aggregate demand management. One of the main conclusions is that financial conditions in the economy are only weakly correlated with the monetary policy stance. Monetary policy can exercise some control over money-market interest rates, but its influence on lending rates is uncertain and comes with long lags. The paper also examines determinants of lending rates and domestic spreads in Croatia.
Subject: Banking, Credit, Economic sectors, Employment protection, Exchange rates, Financial markets, Foreign exchange, Informal economy, Labor, Money, Money markets
Keywords: CR, Credit, Eastern Europe, Employment protection, EPL index, Exchange rates, Informal economy, interest rate, interest rate channel, ISCR, lending, lending rate, lending spread, monetary policy, money market rate, Money markets, rate
Pages:
53
Volume:
2004
DOI:
Issue:
251
Series:
Country Report No. 2004/251
Stock No:
1HRVEA0012004
ISBN:
9781451817294
ISSN:
1934-7685
