ECB Monetary Policy Actions and the Economic Conditions of a Non-Euro Member: The Case of Croatia
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This paper analyses the importance of ECB monetary policy shocks in the domestic activities of a non-EMU member, Croatia, with the main focus on the inflation rate. Using a Vector Autoregressive Model with an exogenous variable specification, it is found that the contraction of foreign monetary shocks have a significant positive impact on the local inflation rate and output. Interestingly, the interest rate gap exerts a statistically significant effect on the economic activities of Croatia, suggesting that targeting exchange rate stability does not eliminate the significance of ECB’s monetary policy changes.
2012 ◽
Vol 17
(4)
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pp. 830-860
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2020 ◽
Vol 102
(4)
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pp. 690-704
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2021 ◽
Vol 52
(4)
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pp. 37-65
2017 ◽
Vol 4
(8)
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pp. 642