The Role of the Central Bank in Capital-Account Liberalization V. The Case Of Croatia
In April 1998 the Croatian National Bank imposed restrictions on short-run capital inflows, after four and a half years during which the regime was liberal. In this chapter I analyze the developments that led to this decision. I also discuss the problem of the central bank’s responsibility regarding regulation of international financial flows. The analysis is strictly limited to the short run, with a special reference to the nature of the monetary transmission mechanism.
KeywordsInterest Rate Monetary Policy Central Bank Capital Inflow Nominal Exchange Rate
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