Croatia employed macroprudential measures to manage credit growth and capital inflows during the boom years of the 2000s, including reserve requirements on loan growth, a marginal reserve requirement on increases in foreign liabilities, foreign exchange liquidity minima, and elevated capital...

Croatia employed macroprudential measures to manage credit growth and capital inflows during the boom years of the 2000s, including reserve requirements on loan growth, a marginal reserve requirement on increases in foreign liabilities, foreign exchange liquidity minima, and elevated capital...

We analyze the impact of monetary and financial policies on the level of financial euroization in Croatia during 2002–2010. We find strong empirical evidence that these policies effectively helped reduce financial euroization in 2002–2007. During the financial crisis, some of the measures...