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Monetary and Fiscal Policy in the Times of Crisis: Case of Serbia

In: European Integration Process in Western Balkan Countries

Author

Listed:
  • Malisa Djukic

    (Belgrade Banking Academy)

  • Hasan Hanic

    (Belgrade Banking Academy)

Abstract

The adequate monetary and fiscal policies are of great importance for the effects mitigation of the global financial crisis. The reduction of interest rates and fiscal stimulus should prevent further deteriorations in the money and capital markets as well as in the economy. Decreases in key interest rates did not necessarily result in the fall of money market rates for the purpose of encouraging banks to provide additional finances to companies. Government spending aimed at citizens and industries resulted in fiscal imbalances and public debt escalation. Given the inter-dependencies between US and Europe as well as Europe and Serbia we analysed the monetary and fiscal policies that have been implemented in US, Europe and Serbia during the post-crises period of the global financial crisis.

Suggested Citation

  • Malisa Djukic & Hasan Hanic, 2012. "Monetary and Fiscal Policy in the Times of Crisis: Case of Serbia," Book Chapters, in: Paulino Teixeira & António Portugal Duarte & Srdjan Redzepagic & Dejan Eric (ed.), European Integration Process in Western Balkan Countries, edition 1, volume 1, chapter 15, pages 296-309, Institute of Economic Sciences.
    • Handle: RePEc:ibg:chaptr:euinpro-15
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    References listed on IDEAS

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    3. Werner Roeger & Jan in 't Veld, 2010. "Fiscal stimulus and exit strategies in the EU: a model-based analysis," European Economy - Economic Papers 2008 - 2015 426, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    4. Mr. Sanjeev Gupta & Mr. Carlos Mulas-Granados & Mr. Emanuele Baldacci, 2009. "How Effective is Fiscal Policy Response in Systemic Banking Crises?," IMF Working Papers 2009/160, International Monetary Fund.
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