Economic Review, Vol. 55 No. 11-12, 2004.
Preliminary communication
DETERMINANTS OF DESIGNING THE GOVERNMENT SECURITIES DOMESTIC MARKET
Krešimir Dragič
Damir Lamza
Abstract
Development of the government bonds’ domestic market is an important factor which influences the development of financial market. These problems are especially important for young and arising markets. The article deals with the determinants of the market development of those government bonds which are common for these markets, and each of them is separately analyzed. The text also encompasses the problems in the Republic of Croatia which are taken as a kind of “theorem” from which it is visible the whole difficulty and responsibility of the economic policy creator from the point of view of the political and the clearly economic comprehension of reality as well. It can be concluded from this theorem that in economic problems an important aspect has been neglected, and that is development of fi nancial market. Ten years ago the process of financial market development did not recognize the importance of money market. From the present-day perspective it seems like past has been recurring, only this time government bonds have replaced the money market. Development of government bonds domestic market plays a great role in development of financial market which is insolvent in comparison with similar markets of neighbouring countries, what has been proved in this paper.
Keywords
government securities; monetary and fiscal policy; strategy of government bonds issues; primary market; primary dealers; open auctions; coordination of monetary and fiscal policy
Hrčak ID:
16324
URI
Publication date:
10.12.2004.
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