As part of its activities in the field of international cooperation, with the aim of stimulating academic debate, the Central Bank of Bosnia and Herzegovina (CBBH) organized an international research conference entitled “How Central Banks Cope to the macroeconomic consequences of the Covid-19 pandemic? “
This is the fourth international research conference organized 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, was the keynote speaker this year.
In the introduction, CBBH Governor Senad Softić, Ph.D. pointed out that the conference and changes in the central bank are not just related to the pandemic, so we should not expect that once the pandemic is over, everything will go back to how it was before “We have to understand that we are facing a new reality,” Governor Softić said.
The point is, the governor said, that the central bank has changed dramatically with the global financial crisis that began in 2007, when most central banks changed their tools through a number of unorthodox measures, but real change for central banks came 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, treasury operations, banking and other operations in accordance with the law, then with careful planning, in accordance with the instructions of the authorities, ensured a safe working environment. and the continuity of all business processes without any interruption 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 Economics Department of the United States Agency for International Development (USAID). USAID has supported the research conferences organized by the CBBH from the beginning.
The conference was organized in two sessions, addressing 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 the responses of central banks to the challenges posed by the pandemic, particularly in terms of the monetary policy model chosen, but also in terms of the level of development. of the country within the same monetary policy framework.
During the second session, the conference was also an opportunity to discuss the questioning of the coordination between monetary and fiscal policies in the euro area after COVID, and the factors influencing the effects of monetary policy. Among other things, emphasis was placed on the impact of regulatory requirements related to bank liquidity, the potential stabilizing role of the fixed exchange rate in times of strong macroeconomic fluctuations and the influence of the country’s average household income on the economy. Monetary Policy. effects.
This year’s conference, due to the current epidemiological conditions in the country and around the world, was organized in a virtual form, led by CBBH Chief Economist Belma Čolaković, Ph.D.