OD BRETTON WOODSA PREKO EURA DO CURRENCY BOARDA – ZNAČAJ ODUSTAJANJA OD MONETARNE POLITIKE NA EKONOMSKU SITUACIJU U BOSNI I HERCEGOVINI
FROM BRETTON WOODS OVER EURO TO CURRENCY BOARD - THE IMPACT OF THE ABANDONMENT OF A MONETARY POLICY ON THE ECONOMIC SITUATION IN BH

Summary/Abstract: Bosnia and Herzegovina is a unique country in the World. If one chooses any of these listed plurality of criteria such as a particular cultural heritage on the edge between Occident and Orient, very singular Balkan’s mentality, people of different national or religious traditions “condemned” or privileged to share common place of living, that uniqueness becomes quite apparent. However, the aforesaid uniqueness makes BiH an exclusive state, which has an independent Central Bank defined in the constitution. Actually, very few people in BiH knew this stipulation of the Dayton’s agreement, whereby the monetary police of the new state was determined. For the majority of the people such decisions appear logical, since the state and the citizens shared an overwhelmed desire for stability after dramatic war experiences, but also since the memories on hyperinflation before the war was still live. This was a pivotal argument for introducing Currency Board as assurance for stability of currency and following the positive experiences of Argentina nobody did objected it. The price of such stability was never a subject of a public discussion and although currency board is the key element of economic live and development, its crucial significance for national economy has not been brought up, neither by the economic experts nor through public media.

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