Description

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.

Taxonomy

Balance of trade , Economic policy , Fiscal policy , International trade , Monetary policy

More publications in this series: Working Papers

More publications by: Daniel Kanda