ECB Monetary Policy Actions and the Economic Conditions of a Non-Euro Member: The Case of Croatia
Document Type
Article
Publication Date
1-1-2017
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.
DOI
10.1515/gej-2017-0008
MSU Digital Commons Citation
Berisha, Edmond, "ECB Monetary Policy Actions and the Economic Conditions of a Non-Euro Member: The Case of Croatia" (2017). Department of Economics Faculty Scholarship and Creative Works. 18.
https://digitalcommons.montclair.edu/economics-facpubs/18
Published Citation
Berisha, E. (2017). ECB Monetary Policy Actions and the Economic Conditions of a Non-Euro Member: The Case of Croatia. Global Economy Journal, 13(1), 20170008.