Long-term process of reforming the economy of Republic of Serbia in order to achieve macroeconomic stabilization: From transient changes to the activist approach

• Main Author: Gavrilović Milica
• Format: Article
• Language: English
• Published: University Dzon Nezbit 2015-01-01
• Series: Megatrend Revija
• Subjects: macroeconomic stability; fiscal policy; reform; resource allocation; monetary policy; the economy; the monetary-fiscal optimum
• Online Access: http://scindeks-clanci.ceon.rs/data/pdf/1820-3159/2015/1820-31591502089G.pdf

In today's economy, which is burdened by problems such as non-productive economy, high unemployment rates, constant inflationary pressures, great attention is paid to the interaction of monetary and fiscal policies in order to achieve macroeconomic stability. There is no universal model of economic policy even in countries around the world, nor in the Serbian economy, and policy makers are looking for the optimal design of monetary and fiscal strategies and their synchronization with other non-negligible specific economic policy objectives (in terms of balance of payments, objectives related to foreign currency course, the distribution of income), implemented stage of market reforms of the nineties, and then phase of reforms in the first decade of the 21st century. How good coordination of monetary and fiscal measures can be no qualitative basis, or as it is not possible to reconstruct and degrade previous economic structure, and that there is no definition of the new strategy, and continued the process of reforming and in the period from the time of deepening global financial crisis in 2008 . The Republic of Serbia, a country whose economy in the long process of reforming, seeks better use of comparative advantages, encouraging production and employment, adequate planning and allocation of available resources of its own and charge, absorption of new technologies, intensifying exports, encouraging investment, and with a constant potential danger which increase the vulnerability of small economies. The solid foundations of macroeconomic stability and discipline must be in production, proper allocation of resources, which will run the economy, and then increase the employment rate, and therefore national income. of crucial importance of good projections of macroeconomic aggregates, because of them depend on public revenue and public expenditure.