Power and Weakness of Monetary Policy in Strinking a Balance Between Balance–of-Payments and Inflation-Related Objectives
This paper analyzes the effects of different monetary policy transmiss ion channels in Serbia as well as their implications for the current monetary policy framework and instruments. It has become apparent that, for the time being there are two active channels: the exchange rate channel and the expectations channel. Although the effect of transmission of the exchange rate on prices is dominant, the central bank is determined to conduct its monetary policy within the framework of an inflation targeting monetary strategy. In the future, other channels -primarily the interest rate and credit channels – are expected to become active as well. However, it should be said that the use of administrative measures has so far not been efficient in strengthening these channels. The Conclusion of the paper draws attention to the difficulties faced by monetary policymakers in the absence of support from other policies, especially fiscal policy.
|Date of creation:||Mar 2008|
|Contact details of provider:|| Postal: National Bank of Serbia, 12 Kralja Petra St, 11 000 Belgrade, Republic of Serbia|
Web page: http://www.nbs.rs
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:nsb:wpaper:12. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Maja Mihovilovic)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.