SOME PROBLEMS OF MONETARY SYSTEM AND MONETARY POLICY IN CROATIAN CIRCUMSTANCES

Money supply, the level of market interest rate and amount of banking credits are ordinarily the goals of monetary policy implemented by central bank. Beside these closer goals for monetary policy and its applicationin in practice, significant are the uttmost goals of monetary policy what is understandable regarding: a) high employment rate; b) low inflation rate; c) balance of payments equilibrium; d) adequate growth rate of gross national product. At the same time these are the goals of other economic policies. Since we can usually achieve one goal as we completely or partially give up the other, it is important in practice to chose adequate strategy of realization of uttmost goals and congruent to this instruments of monetary policy. In Croatian circumstances pervaded by rudimentary financial forms this is the actual side of economic reality burdened by illiquidity of units of economy. Discussion aspires to explanation of general relations in apphcation of monetary policy of central bank, in order to approach in such a way the practical problems of Croatian economy.