Monetarna politika BiH u funkciji makroekonomske stabilnosti
Monetary Policy of Bosnia and Herzegovina as Assumption of Macroeconomic Stability

Summary/Abstract: Besides the central bank as the fundamental bearer of the monetary power in the country, in some cases (especially after a strong financial crisis, hyperinflation, wars...), currency board is introduced as one of the models for monetary policy managing. Even though the model has existed for over two centuries, its importance for national economy has once again been made current in the last two decades. For this reason, the history of currency board, which is the most extreme form of connecting foreignexchange course, is presented first, together with its basic characteristics. After that, classical central banks are compared with currency boards in order to present the basic advantages, as well as disadvantages of that arrangement. In the last section of the work, experiences of some countries are presented, especially those in the field of suppressing the inflationary trends and reaching monetary stability with the arrangement discussed, with special reflection upon Bosnia and Herzegovina. It is emphasized in that context that, even though significant results have been achieved in the past twelve years in Bosnia and Herzegovina in the sphere of monetary policy, there are some potential dangers facing the viability of currency boards in the coming period. The authors propose solutions for elimination or reduction of those dangers.

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