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2021 | OriginalPaper | Chapter

9. Monetary and Fiscal Policy Response During COVID-19 Crisis in Bosnia and Herzegovina: Constraints and Potentials

Authors : Sead Kreso, Lejla Lazović-Pita, Selena Duraković

Published in: Macroeconomic Responses to the COVID-19 Pandemic

Publisher: Springer International Publishing

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Abstract

Bosnia and Herzegovina (BiH), as a small open economy, does not have adequate monetary and fiscal policy capacity to react during crisis. With a currency board as a monetary regime there is almost no room for monetary policy intervention. However, there are potentials in the financial system, which are not used due to undeveloped financial infrastructure. Limitations in monetary policy put additional pressure on fiscal policy, but current complex constitutional and institutional structure results in high and inefficient public spending. With an introduction of fiscal discipline measures, and the development of financial infrastructure, BiH could be better prepared to react to crisis and accelerate development. In this paper we examine constraints and potentials of both monetary and fiscal policy response during COVID-19 crisis in BiH.

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previous chapter Monetary Transmission in Croatia: A View from the Eurozone’s “Waiting Room”

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Title: Monetary and Fiscal Policy Response During COVID-19 Crisis in Bosnia and Herzegovina: Constraints and Potentials
Authors: Sead Kreso
Lejla Lazović-Pita
Selena Duraković
Publisher: Springer International Publishing
Book: Macroeconomic Responses to the COVID-19 Pandemic
Print ISBN: 978-3-030-75443-3

Electronic ISBN: 978-3-030-75444-0

Copyright Year: 2021
DOI: https://doi.org/10.1007/978-3-030-75444-0_9