Croatian economy is especially prone to international shocks. Dramatic spread of coronavirus, followed by drastic fall in supply&demand chains badly affected Croatian economy, which did not even have enough time to recover fully from the 2008 financial crisis and the 2017 Agrocor crisis.
So far, the global economy has been suffering chiefly as a consequence of an economic standstill in China triggered by the outbreak of coronavirus. However, the situation could get far worse. At least two alternative scenarios for the future of the global economy are now on the table.
In light of the large numbers of new digital entities operating on the financial market, the scope and complexity of the regulatory sphere is increasing. Regulatory and supervisory institutions are starting to reach for advanced technologies, which is beneficial for the whole sector.
The inflation targeting strategy has been pursued worldwide for 30 years, and has become one of the most widely used monetary policy regimes. According to this strategy the inflation target communicated to the public is the nominal anchor for inflation expectations.
Digitalization transforms many aspects of business activity, reduces the role of cash in financial intermediation, and promotes the emergence of new forms of money. This is a major challenge for the central banks.
The central bank of Slovakia, NBS continues to regulate the loan market in order to stop the rising indebtedness of Slovaks. While the first measures were introduced last year, the new ones were put in place in July.