Macroeconomic Determinants of Economic Growth in Serbia

Abstract

Abstract. Monetary policy is an important segment of the economic policy of each country where inflation and monetary aggregates represent its significant components. Their movement reflects the trends in the volume of money and the price level which is of great relevance for the economic situation in the country. The aim of the paper is to manifest the impact of macroeconomic indicators on the real gross domestic product. In this paper, inflation (INF), monetary aggregate (M3), public expenditures (PE) and foreign direct investment (FDI) are used as independent variables, while the gross domestic product is determined as a dependent variable. The results showed that there is a positive relationship between GDP and INF, PE and FDI, but

Analysis of the Impact of Macroeconomic Stability on the Level of Global Competitiveness of Western Balkan Countries

“…Tax evasion has a markedly negative impact through reducing the amount of funds on the revenue side of the budget (Risteski, 2009). As a consequence, budget deficit occurs and countries in the region are often indebted for current spending, which lacks long-term sustainable economic logic and foundation (Milenković, Kalaš & Andrašić, 2017). In a kind of spiral, this leads to a rise in public debt and a weak country's credit rating.…”