Croatia employed macroprudential measures to manage credit growth and capital inflows during the boom years of the 2000s, including reserve requirements on loan growth, a marginal reserve requirement on increases in foreign liabilities, foreign exchange liquidity minima, and elevated capital...

This book highlights the achievements and challenges of the ongoing process of financial integration in Europe.   This unique collection will be of great interest to economists and experts in the fields of financial markets and European integration from central, commercial and investment...

We analyze the impact of monetary and financial policies on the level of financial euroization in Croatia during 2002–2010. We find strong empirical evidence that these policies effectively helped reduce financial euroization in 2002–2007. During the financial crisis, some of the measures...

Bank lending, and particularly lending to households, grew rapidly after the restructuring of transition countries' banking systems. While lending booms raise concerns about credit quality and the current account, a Croatian case study suggests that the credit quality issue may not be so severe...

The purpose of this paper is to show that Yugoslav firms have also been subjected to massive, pervasive redistribution through a soft budget constraint. To quantify such redistribution, the authors focus particulary on the redistributive effects of holding financial assets and liabilities in an...

Despite almost 10 years of low inflation, Croatia continues to experience high levels of dollarisation/‘euroisation’. Roughly, three-quarters of bank deposits and currency in circulation are held in foreign currency. This limits the manoeuvering room for monetary policy. Banks try to avoid...