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Devaluation As The Instrument For Recession Overcoming In Bosnia And Herzegovina

Author

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  • ZELJKO MARIC

    (Faculty of Economics University of Mostar, Bosnia and Herzegovina)

Abstract

Devaluation is the instrument of monetary policy which has been used very often during the 20th century. In recent time of globalization, the many limited factors (openness of the economy, capital movements, currency substitution, money illusion) significantly reduce or completely make impossible the devaluation implementation as the measure for foreign trade deficit or recession overcoming in many countries. This paper discusses on positive and negative effects of devaluation in the case of Bosnia and Herzegovina economy.

Suggested Citation

  • Zeljko Maric, 2011. "Devaluation As The Instrument For Recession Overcoming In Bosnia And Herzegovina," Perspectives of Innovation in Economics and Business (PIEB), Prague Development Center, vol. 7(1), pages 8-11, January.
  • Handle: RePEc:pdc:jrpieb:v:7:y:2011:i:1:p:8-11
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    More about this item

    Keywords

    Devaluation; openness of the economy; currency substitution; external indebtedness; Bosnia and Herzegovina.;
    All these keywords.

    JEL classification:

    • F - International Economics
    • F3 - International Economics - - International Finance
    • F31 - International Economics - - International Finance - - - Foreign Exchange

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