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Economic research - Ekonomska istraživanja, Vol. 30 No. 1, 2017.

Original scientific paper

https://doi.org/10.1080/1331677X.2017.1305803

Monetary freedom and economic growth in New European Union Member States

Vladan Ivanović orcid id orcid.org/0000-0001-9205-8645
Nenad Stanišić orcid id orcid.org/0000-0002-7070-4826

Full text: english pdf 1.131 Kb

page 453-463

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Abstract

This paper analyses the relationship between monetary freedom
(index measured by the Heritage Foundation) and real economic
growth of 11 new member states of the European Union. 19-year
panel data regression with fixed effects over the period of 1997–
2015 reveals that the real GDP growth of the selected countries is
positively affected by the degree of monetary freedom. However,
the relationship between monetary freedom and real GDP growth
has weakened after the global recession of 2008. Monetary freedom
was not jeopardized during the crisis, while real GDP growth declined
significantly in most of economies studied.

Keywords

Economic growth; monetary freedom; transition; Central and Eastern Europe

Hrčak ID:

180829

URI

https://hrcak.srce.hr/180829

Publication date:

1.12.2017.

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