Monetary Policy under Dollarisation: The Case of Croatia

Despite almost 10 years of low inflation, Croatia continues to experience high levels of dollarisation/’euroisation’. Roughly, three-quarters of bank deposits and currency in circulation are held in foreign currency. This limits the manoeuvering room for monetary policy. Banks try to avoid balance sheet mismatches by indexing lending to the exchange rate, but this creates credit risk. In addition, strong currency depreciation could lead to flight from the currency, and inflation pass-through, while apparently moderate in recent years, could easily become a problem. Policy options, including adopting the Euro as the official currency, inflation targeting, and the present policy of a limited dirty float, are discussed. [PUBLICATION ABSTRACT]

 By Kraft, Evan – Comparative Economic Studies
Mangudya
Zimbabwe Reserve Bank Governor John Mangudya
Related Posts
Africans Don’t Trust MPs And Councillors – Afrobarometer
WASHINGTON DC — Members of Parliament and local government councillors across Africa have earned little trust and largely negative performance ratings from their constituents, a new report from Afrobarometer shows. “Complaining of ...
READ MORE
Jesus Christ’s “burial slab” found in Jerusalem church
Researchers recently uncovered a stone burial slab which many believe Jesus Christ's body may have been laid on following his death, USA Today reports. The original surface of the tomb was ...
READ MORE
Zambian capital Lusaka
This article introduces an extended database on dollarisation in sub-Saharan Africa (SSA). We document the pattern of dollarisation in SSA economies over the last decade and assess the determinants of ...
READ MORE
An increasing number of US adults are using marijuana as fewer people perceive the drug as harmful.Reuters
According to a survey published in the Lancet Psychiatry, an increasing number of US adults are using marijuana as fewer people perceive the drug as harmful, while rates of abuse ...
READ MORE
Africa after Brexit
By 6:30 a.m. on 24 June, less than 12 hours after a successful referendum on Brexit (Britain’s exit from the European Union), South Africa’s currency, the rand, took the first ...
READ MORE
Saf.mw.700.xs 		Downtown Johannesburg, South Africa at dusk. {{From Peter MenzelÕs Material World Project that showed 30 statistically average families in 30 countries with all their possessions.}}
South Africa has variously styled itself as a “bridge” between the North, the global South and Africa as well as a “gateway” into the continent. It also sees itself as ...
READ MORE
Ibbo Rusike Wadyegora Mandaza
Abstract: This article explores the events leading to the closure of the Zimbabwe Mirror Newspapers Group (ZMNG) in 2007. It narrates how the state in Zimbabwe, through its intelligence arm, the ...
READ MORE
Building an alternative to the ICC’s slippery slope
The International Criminal Court was already on a slippery slope long before last month’s decision by three African countries to withdraw. It will be a long, hard slog, but it ...
READ MORE
Zimbabwe Currency Reforms: The Rand adoption; challenges and dilemma
IN his recent address at the luncheon organised by the St Luke’s Anglican Church in Greendale that later turned out to be a bond note promotion gathering, the Reserve Bank ...
READ MORE
Don’t write democracy off just yet
This past year has been one where the limits and failings of democracy became more visible than at any time since World War Two enshrined the view that representative government ...
READ MORE
Africans Don’t Trust MPs And Councillors – Afrobarometer
Jesus Christ’s “burial slab” found in Jerusalem church
Dollarisation in Sub-Saharan Africa
Increasing number of US adults using marijuana as
Africa after Brexit
How South Africa is really perceived by the
State interference, parapolitics and editorial control: The political
Building an alternative to the ICC’s slippery slope
Zimbabwe Currency Reforms: The Rand adoption; challenges and
Don’t write democracy off just yet

Arts & Entertainment

Arts & Entertainment

Ex-Utakataka bassists to launch album in Mzansi

25th March 2017 Staff Reporter 0

RONNIE Mudhindo’s musical journey is not complete without the mentioning of his early days with the late Tongai “Dhewa” Moyo and Utakataka Express band. The reference involves both sweetness and sourness. Utakataka fans may remember […]