ECB Monetary Policy Actions and the Economic Conditions of a Non-Euro Member: The Case of Croatia

Research output: Contribution to journalArticle

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 languageEnglish
Article number20170008
JournalGlobal Economy Journal
Volume13
Issue number1
DOIs
StatePublished - 1 Jan 2017

Fingerprint

Monetary policy
Inflation rate
Croatia
Economic conditions
Vector autoregressive model
Monetary shocks
Economic activity
Exchange rate targeting
Monetary policy shocks
Policy change
Exogenous variables
Contraction
Interest rates

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 journalArticle

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