Within its activities in the field of international cooperation, with purpose of stimulating academic discussion, the Central Bank of Bosnia and Herzegovina (CBBH) has organised an international research conference called ”How do central banks cope with macroeconomic consequences of the Covid-19 pandemic?“
This is the fourth international research conference organised by the CBBH, with the participation of representatives of central banks, international institutions and the academic community. Professor Patricia C. Mosser, Director of the MPA Program in Economic Policy Management at Columbia University’s School of International and Public Affairs has been the keynote speaker this year.
In the introduction, Governor of the CBBH, Senad Softić, Ph.D. stressed that the conference and changes in central banking are not only related to the pandemic, so we should not expect that, once the pandemic is over, everything will be as it used to be ”We have to understand that we are facing a new reality“, said Governor Softić.
The fact is, Governor said, that central banking has changed dramatically with the global financial crisis which started in 2007, when most central banks changed their tools by a number of unorthodox measures, but the actual change for central banks has come with the pandemic.
He also pointed out that during the pandemic, the activities of the CBBH were intensive. The CBBH, as he stated, ensured the continuity of all its operations, payment systems, cash operations, banking and other processes in accordance with the Law, then with prudent planning, in compliance with the instructions of the authorities, ensured a safe working environment and continuity of all business processes without any interruptions during the pandemic, and most importantly, maintained the stability of the currency, contributing to the overall financial stability of the country.
In addition to Governor Softić, the introductory part was addressed by Mr. Karl Wurster, Director of the Economic Department of the United States Agency for International Development (USAID). The USAID has supported the research conferences organized by the CBBH from the beginning.
The conference was organized in two sessions, addressing the monetary policy during the pandemic and the causes limiting the effectiveness of monetary policy. As part of the panel on monetary policy during the pandemic, the focus was on central banks’ responses to the challenges posed by the pandemic, especially in terms of the chosen monetary policy model, but also in terms of the country’s level of development within the same monetary policy framework.
During the second session, the conference was also an opportunity to discuss the reconsideration of the coordination between monetary and fiscal policy in the euro area after COVID, and the factors influencing the effects of monetary policy. Among other things, the focus was on the impact of regulatory requirements related to bank liquidity, the potential stabilizing role of the fixed exchange rate in a period of strong macroeconomic fluctuations, and the influence that the average household income in the country has on monetary policy effects.
This year’s conference, due to the current epidemiological conditions in the country and the world, was organized in a virtual form, led by CBBH Chief Economist Belma Čolaković, Ph.D.
