The first is the simple accumulation of experience that has exposed some of the shortcomings in earlier thinking about macroeconomic policy. The second is the advances in the analytic framework available to policy-makers to help them analyze the workings of the economy and of monetary policy. These are not independent factors, of course, since economic analysis does change in response to experience.
Dinarization strategy in Serbia rests on three inter-connected pillars. The first pillar relies on delivering low and stable inflation and strengthening the stability of the overall macroeconomic environment. This is, perhaps, the most general, but also the most important goal and it focuses on countering the history of macroeconomic instability experienced in Serbia during the 1990’s.