Abstract
This paper analyses the importance of ECB monetary policy shocks in the domestic activities of a non-EMU member, Croatia, with the main focus on the inflation rate. Using a Vector Autoregressive Model with an exogenous variable specification, it is found that the contraction of foreign monetary shocks have a significant positive impact on the local inflation rate and output. Interestingly, the interest rate gap exerts a statistically significant effect on the economic activities of Croatia, suggesting that targeting exchange rate stability does not eliminate the significance of ECB's monetary policy changes.
| Original language | English |
|---|---|
| Article number | 20170008 |
| Journal | Global Economy Journal |
| Volume | 13 |
| Issue number | 1 |
| DOIs | |
| State | Published - 1 Jan 2017 |
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Keywords
- CNB
- ECB
- VAR
- inflation
- output
Cite this
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ECB Monetary Policy Actions and the Economic Conditions of a Non-Euro Member : The Case of Croatia. / Berisha, Edmond.
In: Global Economy Journal, Vol. 13, No. 1, 20170008, 01.01.2017.Research output: Contribution to journal › Article
TY - JOUR
T1 - ECB Monetary Policy Actions and the Economic Conditions of a Non-Euro Member
T2 - The Case of Croatia
AU - Berisha, Edmond
PY - 2017/1/1
Y1 - 2017/1/1
N2 - This paper analyses the importance of ECB monetary policy shocks in the domestic activities of a non-EMU member, Croatia, with the main focus on the inflation rate. Using a Vector Autoregressive Model with an exogenous variable specification, it is found that the contraction of foreign monetary shocks have a significant positive impact on the local inflation rate and output. Interestingly, the interest rate gap exerts a statistically significant effect on the economic activities of Croatia, suggesting that targeting exchange rate stability does not eliminate the significance of ECB's monetary policy changes.
AB - This paper analyses the importance of ECB monetary policy shocks in the domestic activities of a non-EMU member, Croatia, with the main focus on the inflation rate. Using a Vector Autoregressive Model with an exogenous variable specification, it is found that the contraction of foreign monetary shocks have a significant positive impact on the local inflation rate and output. Interestingly, the interest rate gap exerts a statistically significant effect on the economic activities of Croatia, suggesting that targeting exchange rate stability does not eliminate the significance of ECB's monetary policy changes.
KW - CNB
KW - ECB
KW - VAR
KW - inflation
KW - output
UR - http://www.scopus.com/inward/record.url?scp=85020513788&partnerID=8YFLogxK
U2 - 10.1515/gej-2017-0008
DO - 10.1515/gej-2017-0008
M3 - Article
AN - SCOPUS:85020513788
VL - 13
JO - Global Economy Journal
JF - Global Economy Journal
SN - 1524-5861
IS - 1
M1 - 20170008
ER -