The quest for macroeconomic stability under sanctions and weak state

The inadequate response of the state to collapse monetary system former Yugoslavia and introduction UN sanctions resulted in one longest largest hyperinflations economic history. stabilisation programme, implemented at end January 1994, led an almost immediate halt hyperinflation, which enabled recovery fiscal system, growth activity, consequently citizens? standard living. programme had limited reach because political actors failed implement consolidation, while made it more difficult reforms. After signing Dayton Agreement lifting trade sanctions, Programme II was proposed, containing key measures for transition from a socialist market economy. A coalition influential interest groups gathered around ruling parties rejected II, although some ideas were following years.