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Credit Flows, Fiscal Policy, and the External Deficit of Bosnia and Herzegovina

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  • Mr. Daniel S Kanda

Abstract

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.

Suggested Citation

  • Mr. Daniel S Kanda, 2006. "Credit Flows, Fiscal Policy, and the External Deficit of Bosnia and Herzegovina," IMF Working Papers 2006/276, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2006/276
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    Keywords

    WP; trade deficit;

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