Problems and challenges of Avramovic stabilization program quarter of a century later
Avramović accepted a position of a governor of Central bank of Yugoslavia (at that time, consisted of Republic of Serbia and Republic of Montenegro) in 1994. He has successfully executed one of the most effective anti-inflation programs in an adverse financial environment and without intern...
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| Format: | Article |
| Language: | English |
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Economists' Association of Vojvodina
2022-01-01
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| Series: | Panoeconomicus |
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| Online Access: | http://www.doiserbia.nb.rs/img/doi/1452-595X/2022/1452-595X2202247S.pdf |
| Summary: | Avramović accepted a position of a governor of Central bank of Yugoslavia (at
that time, consisted of Republic of Serbia and Republic of Montenegro) in
1994. He has successfully executed one of the most effective anti-inflation
programs in an adverse financial environment and without international
support. This paper deals with some of the basic problems Avramović has
faced twenty five years ago, most of which have left visible consequences up
to present day. They still nowadays present important weaknesses of Serbian
monetary and financial system. First of those problems is low institutional
independence of Serbian central bank. Second problem Avramović was facing
was lack of confidence in the banking system. Third problem Avramović was
facing at the time of his Program was lack of confidence in the local
currency. These features, although less pronounced, still remain a burden
for Serbian financial system. They increase lending risks, weaken monetary
policy tools, and decrease rates of growth to this day. |
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| ISSN: | 1452-595X 2217-2386 |