Bosnia and Herzegovina (BiH), as a small open economy, does not have adequate monetary and fiscal policy capacity to react during crisis. With a currency board as a monetary regime there is almost no room for monetary policy intervention. However, there are potentials in the financial system,...

An examination of the post-recession responsibilities of central banks, this book proposes adaptations to the central banking model that preserve the advantages in terms of inflation control brought by their independence, while taking into account the long-term consequences of the Great Recession.