LIBERALIZATION OF CAPITAL AND FINANCIAL TRANSACTIONS IN CROATIA

In this paper the Croatian obligations to liberalize capital and financial transactions stemming from Stabilization and Accession Agreeement (SAA) with European Union areanalyzed. The mobility of the capital in Europe is analyzed in turn, as well as various EU directives that mark the end goal of the process of the liberalization of capital transactions started in Croatia. After that the paper surveys the foreign exchange regulations in Croatia,as well as their implications on capital mobility. Furthermore, the capital and financial account liberalization is analyzed both theoretically and on case studies of developed and developing countries. In the last part of this paper the effects of the liberalization in Croatia,as well as its implications on the conduct of economic policy and development are analyzed.