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The starting points of new economic policy in the conditions of recession

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  • Ivo Sever and associates

    ()
    (University of Rijeka, Faculty of Economics, Rijeka, Croatia)

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    Abstract

    The purpose of this research is to recommend theoretical and program basis for the new economic policy for the purposes of overcoming the recession and enabling the recovery of production in the Croatian economy. Furthermore, the goal is to show that the results of this study provide the economic policy with a guidance to the consistent and direct answer on relevant issues in resolving the undesired state of economy. This includes other issues relevant for the society as well. The achievement of these goals is feasible by scientific method of analysis incorporated by activities of economic policy based on fundaments of modern theory. This refers to its fiscal and monetary content in particular and their modern pragmatism. The results of the research show that the causes of recession and economic crisis in Croatia only partly refer to the external origin, and are dominated by internal factors. Among those factors the crucial one is the application of the so called stabilization program in 1993 and related policy of overvalued and stable exchange rate. The main conclusion of the research is that it is necessary to abandon the neoliberal concept of economic policy and its monetarist content (anchor policy). Without such an action it is not possible to stop recession and direct production towards recovery.

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    Bibliographic Info

    Article provided by University of Rijeka, Faculty of Economics in its journal Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics.

    Volume (Year): 27 (2009)
    Issue (Month): 2 ()
    Pages: 217-262

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    Handle: RePEc:rfe:zbefri:v:27:y:2009:i:2:p:217-262

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    Related research

    Keywords: recession; goal; economic policy; government finance; means of economic policy;

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    1. Uhlig, Harald & Yanagawa, Noriyuki, 1996. "Increasing the capital income tax may lead to faster growth," European Economic Review, Elsevier, vol. 40(8), pages 1521-1540, November.
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