engleski

The croatian monetary system and privatization

After Croatia became independent its National Bank established monetary sovereignty. Attempts by the National Bank to control the supply of money and stabilize the economy had an adverse effect on commercial banks and their clients. The unique privatization model Croatia adopted also contributed to liquidity problems. In trying to control inflation, the National Bank lost sight of the fact that it is not important how much money a country has, but rather how much it is worth. The value of a country's money is not determined by National Bank manipulations but rather by national economic conditions.

hard currency; soft currency; monetary sovereignty; central banking; currency system; monetary policy; transition

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