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The New Political Macroeconomics in Modern Macroeconomics and Its Appliance to Transition Processes in Serbia

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Author Info

  • Miomir Jakšić

    ()
    (Faculty of Economics, University of Belgrade, Serbia)

  • Aleksandra Praščević

    ()
    (Faculty of Economics, University of Belgrade, Serbia)

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    Abstract

    This study deals with important issues related to the new political macroeconomics and its appliance to the economic movements in Serbia, which is a country of “new democracy” as well as with transition economy. In political macroeconomics, it is a known fact that the economic policy instruments can be used for political purposes – simulated improvement of economic indicators to win the elections. These options assume specific features in transition economies, such as the Serbian economy. The political instability in Serbia, reflected in frequent elections, as well as in the diversity in political and economic goals of the key political parties leading to increasing political uncertainty in both the pre-election and post-election periods, weakened the economic system. Simultaneously, using the economic policy for political purposes to support the “pro-democratic” and “pro-European” parties proved to be paradoxically justified.

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    File URL: http://www.panoeconomicus.rs/casopis/2011_4/07%20Miomir%20Jaksic.pdf
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    Bibliographic Info

    Article provided by Savez ekonomista Vojvodine, Novi Sad, Serbia in its journal Panoeconomicus.

    Volume (Year): 58 (2011)
    Issue (Month): 4 (December)
    Pages: 545-557

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    Handle: RePEc:voj:journl:v:58:y:2011:i:3:p:545-557

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    Web page: http://www.panoeconomicus.rs/

    Related research

    Keywords: Political macroeconomics; New democracy; Fiscal manipulation; Political instability;

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    References

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    1. Alesina, Alberto, 1987. "Macroeconomic Policy in a Two-party System as a Repeated Game," Scholarly Articles 4552531, Harvard University Department of Economics.
    2. Gaspar,Vítor & Issing,Otmar & Tristani,Oreste & Vestin,David, 2006. "Imperfect Knowledge and Monetary Policy," Cambridge Books, Cambridge University Press, number 9780521854863, October.
    3. Brender, Adi & Drazen, Allan, 2005. "Political budget cycles in new versus established democracies," Journal of Monetary Economics, Elsevier, vol. 52(7), pages 1271-1295, October.
    4. Brender, Adi & Drazen, Allan, 2003. "Where Does the Political Budget Cycle Really Come From?," CEPR Discussion Papers 4049, C.E.P.R. Discussion Papers.
    5. repec:cup:cbooks:9780521855266 is not listed on IDEAS
    6. Rogoff, Kenneth, 1990. "Equilibrium Political Budget Cycles," American Economic Review, American Economic Association, vol. 80(1), pages 21-36, March.
    7. Carlin, Wendy & Soskice, David, 2005. "Macroeconomics: Imperfections, Institutions, and Policies," OUP Catalogue, Oxford University Press, number 9780198776222.
    8. Nordhaus, William D, 1975. "The Political Business Cycle," Review of Economic Studies, Wiley Blackwell, vol. 42(2), pages 169-90, April.
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