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The European Debt Crisis And Its Implications On The Macedonian Economy

Author

Listed:
  • Taki Fiti

    (Ss. Cyril and Methodius University in Skopje , Faculty of Economics – Skopje)

  • Biljana Tashevska

    (Ss. Cyril and Methodius University in Skopje , Faculty of Economics – Skopje)

Abstract

This article provides an overview of the roots of the European debt crisis, which cannot be attributed only to the large fiscal stimulus undertaken by the governments as a response to the global financial crisis of 2007. It results also from the specific design of the Eurozone and the disparities among countires, as well as to fiscal and financial imbalances, especially the previous credit boom and real estate bubble in some peripheral countries. European leaders now face numerous dilemmas concerning the implemented fiscal austerity measures and the appropriate exit strategies (proposals range from enhanced decentralized coordination of fiscal policies, to structural reforms and to a banking and fiscal union). In the end, some of the implications of the European crisis on the financial, real and fiscal sector of the Macedonian economy are examined. Based on the analysis, the article offers lessons about the fiscal policy and public debt of the Republic of Macedonia.

Suggested Citation

  • Taki Fiti & Biljana Tashevska, 2013. "The European Debt Crisis And Its Implications On The Macedonian Economy," Journal Articles, Center For Economic Analyses, pages 25-42, June.
    • Handle: RePEc:cmk:journl:y:2013:p:25-42
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    File URL: http://journal.cea.org.mk/files/journals/1/articles/10/public/10-40-1-PB.pdf
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    References listed on IDEAS

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    Cited by:

    1. Trenovski, Borce & Tashevska, Biljana, 2016. "Fiscal Sustainability of Macedonia on its path towards the EU," MPRA Paper 76321, University Library of Munich, Germany, revised 2016.

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