In this article we analyse how different monetary arrangements, i.e. money, central bank, exchange-rate regime, monetary policy and banks, have been influencing economic performance in the countries of former Yugoslavia. The countries for various reasons opted for different monetary arrangements and we were interested predominantly in whether the central banks have had enough monetary autonomy to prevent damaging overvaluation of their domestic currencies due to inflow of capital originating from sale of business enterprises to foreign investors. The connection between changes in international monetary reserves and monetary circulation is investigated. Further we discuss the capability and willingness of the central banks to purchase foreign exchanges in sterilized way, what impact have had monetary arrangements on the banking systems, how the countries have got used to 'live above their means', and how to change it.
Ivan Ribnikar and Marko Kosak. "Monetary And Banking Systems To Help (Or Hinder) Economic Development Of Transitional Economies." Montenegrin Journal of Economics. vol. 8, no. 2, 2012, p. 181-190
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