18:33 / 19.03.2022.

Author: Domagoj Ferenčić

Stiglitz says that Croatia should postpone joining the Eurozone

Economist Joseph Stiglitz

Economist Joseph Stiglitz

Foto: Ivo Cagalj / PIXSELL

Speaking to Croatian reporters in Brussels, where he is attending the 8th Cohesion Forum, the former World Bank chief economist said that due to ongoing geopolitical risks, the costs of adopting the Euro could outweigh the benefits.

American economist and Nobel laureate Joseph Stiglitz feels that Croatia should postpone adopting the Euro. Stiglitz has held this view for some time now, noting back in 2020 while attending the European Forum Alpbach that adopting the Euro as a country's sole legal tender deprives countries of two important instruments that he believes are essential in being able to adjust national economies to shocks. The first is the ability to adjust exchange arrangements, and the second is the ability to maintain one's own monetary policy, which in turn limits the ability to adjust interest rates.

Croatia is expected to adopt the Euro in 2023, and is being fervently backed by the country's top officials, including Prime Minister Andrej Plenković, Finance Minister Zdravko Marić and the governor of the Croatian National Bank, Boris Vujčić.

The Cohesion forum is a large-scale political event held every three years, bringing together high-level representatives from European institutions, central governments, regional and local representatives, economic and social partners, NGOs and academics to focus on the major challenges of European cohesion policy.

Source: HRT

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