English Abstract: This paper explores whether the effectiveness of monetary policy can be affected by the degree of household indebtedness. We take an interacted panel VAR approach using a panel of 28 countries and thereby obtain several interesting findings. That is, the responses of...

(1) ... abandonment of own currency and irrevocable fixing or persistent stabilization on inadequate exchange rate level of national currency limits the space of establishing own economic policy of a country in case of recession: + (2) ... Croatia still needs its own development strategy in...