Econometric Analysis of Croatia’s Proclaimed Foreign Exchange Rate

Mance, Davor; Žiković, Saša; Mance, Diana

doi:10.1515/jeb-2015-0001

Cited by 6 publications

(6 citation statements)

References 28 publications

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“…Following unit root tests results for the variables quarterly GDP growth rate and foreign exchange rate, these two variables are stationary at its levels. Mance et al (2015) found the EUR/HRK foreign exchange rate stationary at this level as well. Taking into account the aforementioned unitroot tests results, to estimate the equation an autoregressive distributed lag (ARDL) modeling approach is used.…”

Section: Research Data and Methodologymentioning

confidence: 64%

Examining the Relationship between Financial Development and International Trade in Croatia

Bilas

Bošnjak

Novák

2017

South East European Journal of Economics and Business

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This paper examines the relationship between financial development and international trade in Croatia over the period from the first quarter of 1997 and the last quarter of 2015. The autoregressive distributed lag (ARDL) bounds testing approach to cointegration is applied to examine the long-run and short-run relationships among the series. The research hypothesis is accepted and the relationship between financial development and international trade in Croatia is established and confirmed. The research results reveal unidirectional Granger causality from financial development to international trade at the 10% significance level, and negative long-run and the positive short-run relationships between financial developments and international trade in Croatia.

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Section: Research Data and Methodologymentioning

confidence: 64%

Examining the Relationship between Financial Development and International Trade in Croatia

Bilas

Bošnjak

Novák

2017

South East European Journal of Economics and Business

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“…Recalling the results from Bošnjak (2018) among others, there is a prominent financial euroisation in Croatian financial system limiting the space for nominal depreciation of Croatian kuna against euro. The other possibility to influence price competitiveness would be management inflation but it seems as a second goal of monetary authorizes (Mance et al 2015). Furthermore, Croatia has been EU member country since the 2013 and Bošnjak et al (2019) illustrated convergence of import prices between Croatia and EMU members.…”

Section: Empirical Results and Discussionmentioning

confidence: 99%

Real Effective Exchange Rate and Industrial Productivity in Croatia: Wavelet Coherence Analysis

Bošnjak

Kordić

Novák

2021

South East European Journal of Economics and Business

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This paper brings releationship between real effective exchange rate and industry production in Croatia. Research sample consists of monthly data from January 2000 up to June 2019. Following wavelet coherence approach, empirical results reveal the relationship across time and frequency domain. The empirical obtained from wavelet coherence analysis and confirmed with conventional correlation analysis suggested positive relationship between industrial productivity and real effective exchange rate in Croatia, with depreciation as a factor of positive influence on industrial productivity. Research results provided in the paper also contributes to the debate on exchange rate policy in Croatia, extending the discussion on national exchange rate policy implications.

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“…They also must take into account the level of international reserves that are considered supportive of the credibility of the peg exchange rate arrangement (El Hamiani Khatat et al 2020). The exchange rate targeting countries may face some operational and policy challenges, including the necessity for supportive fiscal policy, and a strengthened and coherent monetary policy framework (see, for instance, Mance et al 2015) for an indepth discussion on this particular aspect for the case of Croatia), the optimal choice of monetary policy reaction function, development, and implementation of sound strategies on managing interest rate and exchange rate and selection of liquidity management framework (El Hamiani Khatat et al 2020).…”

Section: Introductionmentioning

confidence: 99%

Evaluating Monetary Policy Effectiveness in North Macedonia: Evidence from a Bayesian Favar Framework

Petrovska¹,

Tonovska

Nikolov³

et al. 2022

South East European Journal of Economics and Business

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This paper has adopted a Bayesian FAVAR approach to examine the monetary transmission mechanism in North Macedonia. The model is based on a broad data set that encompasses 140 monthly time series spanning between January 2010 and January 2019. In particular, the impact of policy on bank portfolio variables, and the impact of policy on economic activity variables have been evaluated. Our findings show that monetary tightening, causes a fall in output, inflation rate, employment, bank lending, the stock of government securities held by banks, and equity prices. On the other hand, it increases short-term money market rates, lending rates, deposits, and only in the immediate aftermath of the key policy rate rise, the share of non-performing loans in the loan portfolio. The study is expected to provide useful input to monetary policy implementation in North Macedonia. The study as well enriches the literature in this domain by discussing the challenges facing monetary authorities of small open economies with fixed exchange rate regimes in understanding how their policy instrument work through the economy.

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Econometric Analysis of Croatia’s Proclaimed Foreign Exchange Rate

Abstract: The officially proclaimed foreign exchange policy of the Croatian National Bank (CNB) is a managed float with a discretionary right of intervention on the Croatian kuna/euro foreign exchange (FX)

Cited by 6 publications

References 28 publications

Examining the Relationship between Financial Development and International Trade in Croatia

Examining the Relationship between Financial Development and International Trade in Croatia

Real Effective Exchange Rate and Industrial Productivity in Croatia: Wavelet Coherence Analysis

Evaluating Monetary Policy Effectiveness in North Macedonia: Evidence from a Bayesian Favar Framework

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