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Faculty of Economics and Business, Maribor (EPF)
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  • Finansijsko tržište i privredni rast - faktori i ograničenja
    Savin, Davor
    Steady economic growth, increases in economy's output of goods and services, raises household incomes and thereby increases government revenues. With high unemployment (which prevails in Yugoslavia ... in continuance) and very low national savings, businesses are not likely to grow by investing in new plants and equipment that raise profits, productivity and per capita income. However, an important mechanism is lacking: a stable and efficient financial system that makes possible matching of savers and borrowers. Yugoslav economy should constitute financial market and institution stability to channel funds from savers to borrowers. In addition, financial market firmness is required for foreign-exchange stability as well. This more so because fixed exchange rate of the Yugoslav national currency, the dinar, has become a most important monetary policy goal of the National Bank. Attempts to foster stability in financial markets and institutions are likely to be consistent with interest rate stability; as unvarying interest rates (or their limited fluctuations) promote stability in the net worth of financial institutions. Central banks has chosen to control the money supply growth in order to maintain the interes rates, and notably, the foreign exchange value of the dinar as steady as possible within the existing state of affairs in Yugoslavia. No other possibility seems to exist - setting an intermediate target in terms of the interest rate would cause the quantity of money to fluctuate in response to changes in permanently strong money demand.
    Source: Berza. - ISSN 0354-1975 (Br. 7/8, 1998, str. 3-12)
    Type of material - article, component part
    Publish date - 1998
    Language - serbian
    COBISS.SI-ID - 4193052

source: Berza. - ISSN 0354-1975 (Br. 7/8, 1998, str. 3-12)

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