Due to the pandemic crisis, the decline in cross-border travel has caused deterioration of consumption and induced the collapse of domestic consumption. Finally, the drop of the consumption in travel service affected the travel trade balance and caused decline of the economy. The aim of this paper is to analyze the impact of the pandemic shock on the touristic sector in Croatia and to measure the effect of this negative trend. The research will be conducted using the SVAR model to disclose pandemic shock. The analysis considers the effect of the pandemic shock on the performance of the tourism sector, what is approximated by CROBEX turist index. Also, the analysis tests the impact of pandemic shock on turnover of the hotel industry. The results confirm the large-scale shock in the touristic sector and implicate the importance of measuring shock in assessing future trends and proposing measures for economic recovery in Croatia.

Research background: Although macroprudential instruments increase financial stability, it is necessary to test how they affect the overall economic recovery after a global financial crisis. In the post-crisis period, the real sector needed a strong injection of capital in order to be able to start recovery and to encourage economic growth. At the same time, most of the countries introduced strict regulatory measures that strengthen bank capital and the liquidity base. From the standpoint of the financial sector stability, these measures contributed to the overall financial stability, but at the same time, these measures hold up the bank credit activity. Purpose of the article: This paper analyses the impact of macroprudential instruments on the bank credit activity toward the non-financial sector. The analysis is made by using the Granger Causality Test and the ARLDS Bounds Test. Methods: The research was conducted for the period of 2000 – 2019, based on the data of the Croatian National Bank and the Croatian Bureau of Statistics using logarithmic quarterly data. The analysis is made by using the Granger Causality Test and the ARLDS Bounds Test. Findings & Value added: The results confirm the thesis that additional macroprudential measures decrease the bank credit activity toward the real sector, which slows down the real sector recovery and extends the downturn in the business cycle. On the other hand, the macroprudential measures increase the financial stability of the whole economy, which is positive for future investments and recovery of the real sector.

SAŽETAK:Zbog integriranosti i globalne povezanosti Þ nancijskih subjekata i tržišta, monetarna politika više nije dostatna za o uvanje Þ nancijske stabilnosti (posebice kod malih otvorenih zemalja poput Hrvatske) te je za postizanje i o uvanje Þ nancijske stabilnosti nužno uvesti makroprudencijalne mjere i instrumente. Obzirom da monetarna i makroprudencijalna politika u ostvarivanju svojih ciljeva djeluju na iste i/ili povezane varijable, nužno je koordinirati politike kako bi se smanjila odstupanja od ciljeva kod obje politike. U ovome radu je metodom nelinearnog kvadratnog programiranja dokazano da se kooperativnim modelom u kojemu monetarna i makroprudencijalna politika sura uju, cjenovna i Þ nancijska stabilnost ostvaruju uz niža odstupanja od zadanih razina nego u slu aju ne-kooperativnog modela gdje svaka politika izolirano ostvaruje svoj cilj. Suradnja je ostvarena optimalnom primjenom kamatne stope (kao glavnoga instrumenta monetarne politike) i kapitalnih zahtjeva (kao glavnoga instrumenta makroprudencijalne politike) uz utjecaj deviznoga te aja.KLJU NE RIJE I: Þ nancijska stabilnost, monetarna politika, makroprudencijalna politika.ABSTRACT: Due to the integration and global interconnection of Þ nancial entities and markets, monetary policy is no longer sufÞ cient for maintainig Þ nancial stability (especially in small open countries like Croatia). Hence, in order to achieve and maintain Þ nancial stability, it is necessary to introduce macroprudential measures and instruments. Since for achieving their objectives both monetary and macroprudential policies affect the same

The emergence of coronavirus led to evident consequences for the global economy. During the previous financial crisis, organisations have already determined the elements of crisis management so they could met the new corona crisis readily. Global changes, like the current pandemic situation, provide a different view toward the future expectations. The pandemic has caused new way of functioning under special circumstances such as various restrictions in many European countries, restrictions on people’s mobility and other novelties that have encountered for the first time. Characteristics of this crisis include novelty and pressure in a business environment, which can reveal various vulnerabilities in organisations. Managers were affected by major business changes, and there appeared a need for rapid reorganisation of the current way of functioning. Management had to introduce new control systems that refer to their strategies for exchanging information and decision-making. In general, each crisis is a new opportunity for seeking modern and appropriate models and tools for business improvement. When business situations are challenging, managers are more oriented toward controlling. Therefore, organisations that focus on traditional management models are not very successful in normal circumstances, and even less so in a crisis. This study aims to examine the extent of the structure and function of management control systems in pandemic conditions in Croatian organisations. An overview of current systems in organizations was given, as well as management challenges of the pandemic situations. This study includes the analysis of management control system during the pandemic times. The research was conducted using survey method what referred to analyses of strategic plans, performance evaluation systems, and management controls for performance evaluation in Croatian organisations. The factor analysis of the main components was conducted in order to examine the contribution of predictor variables in explaining the broad-scope management control system. In order to examine the contribution of gender, age, work experience, education, company size, aggregation, timeliness, and integration for explaining of broad-scope the management control system hierarchical regression analysis was conducted. The results confirm that integration is significant predictor in the crisis controlling model, but at the same time, when the integration and timeliness should have positive connection, greater timeliness does not increase to the greater availability. This withdraws the conclusion that uncertainty of environment extents the speed of business processes. Despite of the equal integration during pandemic crises the remote working conditions caused the decrease of the promptness of reporting collected information, which requires new models of controlling in unpredictable situations.

Research background with the introduction of the euro as the domestic currency, economies have faced inflationary pressures caused by price convergence towards higher levels. During the last period of significant negative shocks from the environment, by entering the euro area, the negative effects of the likelihood of inflation caused by the introduction of the euro may be absent. Purpose the aim of this paper is to prove that inflation caused by joining the euro area will not materialize due to the negative effects of external shocks. Research methodology A panel analysis with a fixed effects model was conducted for two models. Model 1 represents the countries that introduced the euro before the escalation of the global financial crisis and Model 2 represents the countries that introduced the euro after the development of the global financial crisis. Results the research confirmed that due to current negative external shocks and rising long-term interest rates in financial markets, the effect of inflation due to the introduction of the euro will be absent among EU members that will adopt the euro as a common currency in the next few years. Novelty The results of the research contribute to the scientific prediction of business and financial trends. The creators of macroeconomic models and monetary policy can use the results to define measures, instruments and activities more precisely for achieving and maintaining macroeconomic balance.