CBBiH organized the fourth international research conference

(Patria) - As part of its activities in the field of international cooperation, and with the aim of fostering academic discussion, the Central Bank of Bosnia and Herzegovina (CBBiH) organized an international research conference today, 4. 11. 2021, titled "How are central banks dealing with the macroeconomic consequences of the Covid-19 pandemic?"

This is the fourth international research conference organized by the CBBiH, with the participation of representatives from 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 this year's keynote speaker.

In his opening address, the Governor of the CBBiH, Dr. Senad Softić, emphasized that the conference and changes in central banking are not just about the pandemic, and that things should not be expected to return to normal once the pandemic ends. "We must realize that we are facing a new reality," said Governor Softić. The fact is, as the Governor stated, that central banking has dramatically changed with the global financial crisis that began in 2007 when most central banks changed their instruments with a series of unorthodox measures, but the real change for central banks came with the pandemic.

He also pointed out that during the pandemic, the CBBiH's activities were intense. The CBBiH, as he stated, ensured the business continuity of all its operations, payment systems, cash operations, banking, and other processes in accordance with the Law, then through careful planning, while respecting the instructions of the authorities, ensured a safe working environment, as well as the continuity of all business processes without any interruptions during the pandemic, and most importantly, maintained currency stability, contributing to overall financial stability in the country.

In addition to Governor Softić, Mr. Karl Wurster, Director of the Economic Department of the United States Agency for International Development (USAID), also addressed the audience in the opening part. USAID has been supporting the research conferences organized by the CBBiH since the beginning. The conference was organized in two sessions, during which monetary policy during the pandemic and what limits the effectiveness of monetary policy were discussed. Within the panel on monetary policy during the pandemic, the focus was on the responses of central banks to the challenges brought by the pandemic, especially from the perspective of the chosen monetary policy model, but also from the perspective of the country's development level within the same monetary policy framework.

During the second session, the conference was also an opportunity to discuss rethinking the coordination between monetary and fiscal policy in the eurozone after COVID, and the factors influencing the effects of monetary policy. Among other things, the focus was on the impact of regulatory requirements related to bank liquidity, the potential stabilizing role of a fixed exchange rate in a period of strong macroeconomic fluctuations, and the impact of the average population income in the country on the effects of monetary policy.

This year's conference, due to the current epidemiological conditions in the country and the world, was also organized in a virtual format, led by Dr. Belma Čolaković, Lead Economist at the CBBiH.