Since the end of 2008 it has been below 10% – firmly anchored around the NBS targets. The word inflation has all but disappeared from today’s headlines. Not so for the exchange rate. The exchange rate fluctuations still remain a major concern for the public and businesses.
The purpose of my talk today is to explain that such fluctuations are a necessary backbone of stable and low inflation, and as such they must stay with us in the foreseeable future (until Serbia enters the eurozone following the harmonization of business cycles).