The journal Public Sector Economics and its publisher, the Institute of Public Finance, organized a virtual presentation based on the article written by Mislav Brkić, senior advisor at the European Relations Department of the Croatian National Bank, on the preservation of the financial stability in Croatia during the Covid-19 crises.
The presentation is based on the article Preserving economic and financial stability in an emerging market country during the pandemic crisis: Croatia’s Experience published in the journal. Claiming that Croatian authorities’ response to the pandemic crisis was considerably greater in size and scope than their reaction to the 2008-09 global financial crisis, Brkić aims to identify the main factors that allowed the authorities to respond so ambitiously this time. In particular, he explains how solid macroeconomic fundamentals backed by a steady inflow of EU funds enabled the Croatian Government and the Croatian National Bank to take bold steps to restore stability in key financial markets and provide liquidity support to the economy without compromising currency stability and fiscal sustainability. In addition, as an EU member state, Croatia was in a position to benefit from a currency swap line with the European Central Bank, as well as from the EU’s common recovery facility, which reduced concerns about the pandemic-induced rise in government debt. Finally, he identifies some positive external factors that were beneficial for all emerging market economies.
The presentation was moderated by Josip Franić, researcher at the Institute of Public Finance.
A recording and a presentation of this interesting lecture are also available (in Croatian).