MONETARNA POLITIKA U USLOVIMA GLOBALNE PANDEMIJE U ZEMLJAMA KOJE PRIMENJUJU REŽIM VALUTNOG ODBORA
MONETARY POLICY IN THE CONTEXT OF A GLOBAL PANDEMIC IN COUNTRIES APPLYING THE CURRENCY COMMITTEE REGIME

Author(s): Nikola Fabris
Subject(s): Economy, National Economy, Micro-Economics, Health and medicine and law, Public Finances
Published by: Finrar d.o.o Banja Luka
Keywords: Monetary Policy; Pandemic; Currency Board; Recession;
Summary/Abstract: The coronary virus pandemic began in China at the end of 2019 and spread rapidly throughout the world in 2020. It has led to a number of business constraints that have further resulted in a significant decline in economic activity, the collapse of a large number of businesses,rising unemployment, a slowdown in cross-border flows, and a significant decline in investment activity and aggregate demand. Against such backdrop, economic policy makers around the world had to implement a wide range of incentives from their fiscal and monetary policy arsenals.Countries under the currency board arrangement are in a very specific position as most of the classical monetary policy instruments are not available to them. However, the application of monetary policy incentive instruments is also necessary in these countries given that the crisis induced by the pandemic has not bypassed them. Therefore, the paper analyses the possibilities of applying adequate monetary policy measures in countries having the currency board regime in place.

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