Croatia has fallen into the trap of a low employment level and it must find a way out if this situation so as to avoid even bigger social damage, said Lord Robert Skidelsky, professor of Political Economy at the University of Warwick and winner of numerous prizes, including the Lionel Gelber Prize for International Relations and the Council on Foreign Relations Prize for International Relations.
Skidelsky gave a talk on the fiscal and monetary policy in recession in the Croatian Chamber of Commerce in Zagreb on Wednesday
He said Croatia had two tools - control over its own currency and printing money, adding however that crisis conditions required certain measures. He said Croatia had not exploited all possibilities for increasing export demand, adding that this would result in the depreciation of the national currency.
He stressed that Croatia must develop a programme of domestic investments and stick to austerity measures.
