Tendencije kretanja monetarnih agrgata u Bosni i Hercegovini
Tendencies in monetary aggragates' movements in Bosnia and Herzegovina

Summary/Abstract: This paper tests the structure and tendencies in monetry aggregates movements in Bosnia and Herzegovina in the light of all the parameters that are in the monetary agregates' structure. In May 2007, monetary multiplier in Bosnia and Herzegovina was 1,0356942. That means, if monetary authority increases the quantity of primary money, narrow money supply would increase by 1,0356942 money units, but not in the case of current monetary regime in Bosnia and Herzegovina due to the Currency Board arrangement. The methodological explanation by the Central Bank of Bosnia and Herzegovina gives us a different concept of monetary aggregates' structure as compared to monetary aggregates of euro-zone designed by the European central bank. This is important to compare due to the fact that strategic goal of Bosnia and Herzegovina is the integration into European monetary union and European central bank. The structure of monetary aggregates in Bosnia and Herzegovina is developed to the liquidity level of M2, while in euro-zone, the reference value of money supply growth is determined by monetary aggregate M3. This one is not even developed in the monetary system of Bosnia and Herzegovina yet. Likewise, we have analysed the tendency of monetary aggregates' growth in Bosnia and Herzegovina, where the positive trend has existed since 1997 when the Central Bank of Bosnia and Herzegovina was establihed. In conluding remarks, we said that certain modification and adjustments in the area of monetary aggregates would be needed in order to make them accordant with euro-zone monetary aggregates.

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