Prepared by Daniel Kanda.
See Chapter 3.
See IMF Country Report No. 98/69, September 4, 1998.
See World Bank, Bosnia and Herzegovina Banking Sector Review, June 2004.
Central Euro area interest rate is calculated as the average of the Monetary Financial Institution (MFI) rate on overnight household deposits and the MFI rate on household consumption loans (with floating rates or with rates fixed for one year or less). The central Bosnian interest rate is calculated as the average of BiH demand deposit rate and BiH short term lending rate.
The true velocity is likely higher than presented in Figure 7, since official estimates of nominal GDP exclude the large non-observed economy (see chapter 5 and IMF Country Report No. 04/54, March 9, 2004). However, the gradual decline in reported velocity suggests that the official estimate of the rate of growth of GDP may not be too far off, implying that the grey economy may be growing at a similar rate as the recorded economy.
See Chapter 4.