Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/156133
Authors: 
Baskot, Bojan
Year of Publication: 
2016
Series/Report no.: 
Graduate Institute of International and Development Studies Working Paper 17-2016
Abstract: 
Vector autoregressive (VAR) models are commonly used for macroeconomic analyses. However, there are several reasons why this tool has not been applied to the case of Bosnia and Herzegovina. As Bosnia and Herzegovina has a currency board system, I use a VAR model with exogenous variables (VARX) and consider two exogenous shocks: interest rates for countries in the Eurozone and remittances. My analysis confirms that Bosnia and Herzegovina is a small open economy highly dependent on foreign aid and remittances, and has no autonomous monetary policy because of the currency board system.
Document Type: 
Working Paper

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