Monetary and Fiscal Authorities in the Republic of Croatia - Challenges of Globalization

Abstract

The paper discusses the relations between monetary and fiscal authorities, their institutional interconnectedness and non-institutional aspects of these relations. The transition of monetary and fiscal institutions in the Republic of Croatia is used to discuss some specific features of their environment. The authors elaborate on the Croatian National Bank as a monetary regulator, and the Tax Administration as a fiscal authority. The structure and organisation of both institutions are described, including the relations between monetary and fiscal authorities. It is concluded that both institutions are directly connected with achieving the country's intended development targets. The activities of the Croatian National Bank are oriented towards overall economic system, whereas the Tax Administration operates in the interests of Croatia's budget. The Croatian National Bank is the country's central bank and the pivotal place of its monetary-credit system. Through its legislated functions, the Croatian National Bank supports the goals of the country's economic policies. Its equally important role is controlling the stability of the national currency, which implies responsibility for the general internal and foreign payment liquidity. As an independent institution, the Croatian National Bank uses the instruments of monetary-credit policy, especially emissions of treasury bonds and notes, to influence the size and changes of money circulation in the country, aimed at maintaining general monetary stability.

Keywords: monetary, fiscal, numismatic

JEL Classification: E5, E6, G28