Non-Interest Current Account Sustainability In Croatia

Abstract

The subject of this paper is non-interest current account sustainability in Croatia in the period between 2001 and 2010. Using MFR and Reisen approach short-term and long-term sustainability of non-interest current account is assessed by comparing the hypothetical sustainable levels with actual values. Research results indicates marginal short-term non-interest current account sustainability. Long-term non-interest current account was also sustainable in the observed period. On the other hand, significant intermediate levels of non-interest current account deviations suggests that the non-interest current account in Croatia is not sustainable in the period between 2001 and 2010.

Keywords

• current account sustainability
• non- interest current account
• MFR and Reisen approach
• Croatia