engleski

Linkages between business and financial cycles – comparison of Croatia and the EMU

Recent financial crisis in the EU demonstrated the importance of financial cycles in understanding business cycle fluctuations. Previous research has emphasised the need for business cycle synchronisation as an important element for common monetary policy, because it is much easier to conduct monetary policy changes when all members are in the same state of the cycle. However, when this is not the case, common monetary policy can lead to different financial cycles across the member states, which can in turn additionally impact business cycles and create boom – bust cycles. Croatia does not have “opt-out clause” and will eventually have to introduce euro. Hence, we are investigating synchronisation and spillovers of business and financial cycles between Croatia and the EMU.

business cycle; financial cycle; transmission

nije evidentirano