Pregled bibliografske jedinice broj: 639833
Monetary policy and business cycles in Croatia
Monetary policy and business cycles in Croatia // The Future of Economics: Between Rules and Discretion / Gonan Božac, Marli ; Ribnikar Ivan (ur.).
Pula: Sveučilište Jurja Dobrile u Puli, 2013. str. 151-179
CROSBI ID: 639833 Za ispravke kontaktirajte CROSBI podršku putem web obrasca
Naslov
Monetary policy and business cycles in Croatia
Autori
Benazić, Manuel ; Tomić, Daniel
Vrsta, podvrsta i kategorija rada
Poglavlja u knjigama, znanstveni
Knjiga
The Future of Economics: Between Rules and Discretion
Urednik/ci
Gonan Božac, Marli ; Ribnikar Ivan
Izdavač
Sveučilište Jurja Dobrile u Puli
Grad
Pula
Godina
2013
Raspon stranica
151-179
ISBN
978-953-7498-71-9
Ključne riječi
monetary policy, business cycles, rule vs. discretion, Hodrick-Prescott filter, expectations, Croatia
Sažetak
Inconsistency in macroeconomic policy and government failures in recognizing potential development moments lead to 'decision-making dilemma' ; should economic policy be determined by a legislation rule or by a policymaker's discretion? The fundamental framework for evaluation of monetary policy is a degree in which it effectively interprets expectation of economic agents about the macroeconomic outcomes. Monetary actions are thus based on asymmetric mis/information in which public expectations are formed defining changes in macroeconomic variables and expected policy course in future. What economic logic should monetary authority impose then? If it imposes a rule, central bank has to follow it in a medium or long-run regardless of the current economic situation. On the other hand, if it chooses discretion as a monetary instrument, central bank gains a right to act in accordance to its own assessment having the possibility to deviate from long-run objectives in order to satisfy some short run goals. Though these terms look profoundly different, they are mutually determined, since a rule is in fact a restriction on the monetary authority discretion. The aim of this paper is to evaluate the effectiveness of monetary policy in defining business cycles in Croatia, i.e. can it and in what way determine the cyclical movements of Croatian economy. Using Hodrick-Prescott filter for detrending selected macroeconomic variables, this paper gives a reflection on the past relationship between the characteristics of Croatian monetary policy and business cycles in order to identify the difference within a rule vs. discretion dilemma surrounding monetary policy of Croatian central bank. Namely, by revealing the ‘complexity’ of monetary policy in Croatia, we provide a framework for economic reasoning which economic agents could apply within their future decisions.
Izvorni jezik
Engleski
Znanstvena područja
Ekonomija
Napomena
Zbornik radova doktorskog studija Sveučilišta Jurja dobrile u Puli s međunarodnim urednicima, uređivačkim odborom i recenzentima. Book is a part of postgraduate doctoral study at the Juraj Dobrila University of Pula ; international editors, editorial board and reviewers.
POVEZANOST RADA
Projekti:
145-0000000-2592 - Koliko države ili kakav sustav javnih financija treba Hrvatskoj u 21. stoljeću?
303-0000000-2592 - Koliko države ili kakav sustav javnih financija treba Hrvatskoj u 21. stoljeću? (Krtalić, Sandra, MZOS ) ( CroRIS)
Ustanove:
Sveučilište Jurja Dobrile u Puli