Furthermore, the potential to apply government debt stabilization tools depends on many different factors,
specific to the analysed economy. One of the main critical factors, and the object of this paper, is the monetary
policy arrangement. If economy is within currency board system, its options to select different government debt
stabilization tools are limited in terms of controlling the impact of the change of monetary policy on the economy
(Campa, 2012; De Grauwe & Ji, 2012; Afonso, 2005; Dafflon, 2002).