Credit Flows, Fiscal Policy, and the External Deficit of Bosnia and Herzegovina
20 Pages Posted: 12 Jan 2007
Date Written: December 2006
This paper develops and estimates a model of the trade balance of Bosnia and Herzegovina. Credit flows and the fiscal stance are found to play a significant role in determining the trade balance. On this basis the paper discusses the trade-offs between monetary and fiscal policy settings needed to achieve a clear downward path for the large current account deficit of Bosnia and Herzegovina.
JEL Classification: C13, C51, E17, E63, F41
Suggested Citation: Suggested Citation