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

Author

Listed:
  • Ivo Sever

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

  • Zoran Aralica

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

  • Zvonimir Baletic

    (Insitute of Economics, Zagreb, Croatia)

  • Sasa Drezgic

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

  • Vladimir Lasic

    (Institute of Economics, Zagreb, Croatia)

  • Joze Mencinger

    (University of Ljubljana, Faculty of Law, Ljubljana, Slovenia)

  • Davor Savin

    (University of Maribor, Faculty of Economics and Business, Maribor,Slovenia)

  • Dragoljub Stojanov

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

  • Mato Bartoluci

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

  • Stjepan Zdunic

    (Intitute of Economics, Zagreb, Croatia)

  • Sasa Zikoviæ

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

  • Branko Caratan

    (University of Zagreb, Faculty of Political Science, Zagreb, Croatia)

  • Branimir Lokin

    (Croatian Chamber of Economy, Zagreb, Croatia)

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.

Suggested Citation

  • Ivo Sever & Zoran Aralica & Zvonimir Baletic & Sasa Drezgic & Vladimir Lasic & Joze Mencinger & Davor Savin & Dragoljub Stojanov & Mato Bartoluci & Stjepan Zdunic & Sasa Zikoviæ & Branko Caratan & Bra, 2009. "The starting points of new economic policy in the conditions of recession," Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, University of Rijeka, Faculty of Economics and Business, vol. 27(2), pages 217-262.
    • Handle: RePEc:rfe:zbefri:v:27:y:2009:i:2:p:217-262
    as

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    File URL: https://www.efri.uniri.hr/sites/efri.hr/files/cr-collections/2/sever-2009-2.pdf
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    References listed on IDEAS

    as
    1. George A. Akerlof, 2009. "How Human Psychology Drives the Economy and Why It Matters," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(5), pages 1175-1175.
    2. 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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    More about this item

    Keywords

    recession; goal; economic policy; government finance; means of economic policy;
    All these keywords.

    JEL classification:

    • E02 - Macroeconomics and Monetary Economics - - General - - - Institutions and the Macroeconomy
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • E23 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Production
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • E50 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - General
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • G01 - Financial Economics - - General - - - Financial Crises
    • H0 - Public Economics - - General

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