haku: @indexterm Stabilization / yhteensä: 202
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| Tekijä: | Rant, A. |
| Otsikko: | Of the instruments of monetary and foreign exchange policies of the Central bank since 1991 |
| Lehti: | Slovenska ekonomska revija
1995 : VOL. 46:5, p. 71-89 |
| Asiasana: | SLOVENIA CENTRAL BANKS MONETARY POLICY FOREIGN EXCHANGE POLICY STABILIZATION BALANCE OF PAYMENTS |
| Kieli: | slv |
| Tiivistelmä: | Monetary independence brought about the task of stabilizing the newly introduced domestic currency - the Tolar, which was to be achieved by the Bank of Slovenia.To reach this goal the Bank of Slovenia chose the money based stabilization.Its aim was to control the supply of base money.The appropriate exchange rate regime to such an approach was the floating exchange rate regime.By controlling the supply of base money, conditions for export-led growth in Slovenia were created.The dissolution of the former state and the decrease of inflation caused a surplus in the balance of payments, influenced by structural and speculative reasons.Therefore the Bank of Slovenia started sterilizing the surplus in the balance of payments, trying to prevent the appreciation of the Tolar caused by the large supply of foreign exchange.For this purpose instruments enabling the necessary withdrawal of base money from circulation, were introduced.So the Bank of Slovenia created the basis for foreign exchange demand in such an amount that the appreciation of the Tolar rate was slowed down although it was not eliminated.The sterilization was necessary due to the uncertainty of what a long-term balance in international business operations might be in the course of all changes.With the new circumstances not only an increase of export but also a decline in investments was caused, as well as a shrinkage of import and increase of the inflow of capital, as a short-term reaction of the economy to the changes.The conduct of monetary policy was under the constraint of the rehabilitation process in the banks and jeopardised by the lack of support of the wage policy. Substantial support for the Bank of Slovenia was its own regulation concerning banking supervision.After four years, monetary stabilization resulted in foreign exchange reserves accumulating to five months of imports, an annual inflation rate close to a one digit number, substantially reduced interest rates and a relatively stable Tolar exchange rate. |
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