The Croatian National Bank, together with the Institute of Public Finance, presented the Hanžeković Foundation’s 2024 award-winning papers at the 64th CNB Economic Workshop, highlighting findings on inflation dynamics and the interaction between fiscal measures and monetary policy transmission in Croatia. In the regular category, Ozana Nadoveza presented research estimating the impact of public sector wage growth on overall inflation using Bayesian vector autoregression (BVAR) models, concluding that the direct effect on inflation is negligible and any indirect effect via aggregate demand and spillovers to private sector wages remains relatively low under the assumptions tested. In the student category, Noa Hinger and Lucija Rašić presented analysis of how Croatian government bond issuance affected deposit interest rates relative to the European Central Bank’s influence, finding government bonds had a limited impact while the ECB effect was much more significant. The awarded papers were published in the Institute of Public Finance journal Public Sector Economics, and the Hanžeković Foundation competition for 2025 is open.
Croatian National Bank 2025-03-20
Croatian National Bank presents Hanžeković Foundation award-winning research on public wage growth and inflation and on government bonds and deposit rates
The Croatian National Bank and the Institute of Public Finance presented award-winning research at the 64th CNB Economic Workshop, focusing on inflation dynamics and fiscal-monetary policy interactions in Croatia. Ozana Nadoveza's study found minimal direct impact of public sector wage growth on inflation, while Noa Hinger and Lucija Rašić's analysis showed limited influence of Croatian government bond issuance on deposit interest rates versus the European Central Bank's significant effect.