And the reality is unyielding: inflation does not create jobs, it does not push GDP up, and, perhaps most importantly, inflation has not created welfare anywhere in the world! Is it then possible that, even after the devastating consequences of the 1992-1993 hyperinflation on the country’s economy, Serbia has still not grasped how damaging the effects of inflation can be?
Finally, cross-border banking groups are increasingly centralising key business functions such as credit risk and liquidity management, often cutting across separate legal entities in different countries. The growing prominence of cross-border banking has important financial stability implications. On the one hand, cross-border banking broadens and deepens banking markets, increases liquidity and risk sharing and thus strengthens the overall resilience of the European financial system.