STRENGTHENING THE ROLE OF THE MARKET AND FURTHER DEVELOPMENT OF ACTIVE MACROECONOMIC POLICY - Descarga este documento en PDF. Documentación en PDF para descargar gratis. Disponible también para leer online.

In the process of transition and globalization, the creation of an efficientsystem of economic activities has to be based on the market- oriented economy andadequate measures of economic policy.The strengthening and enlargement of the role of the market and economiclaws becomes a need all the more as the market is the best factor of valuation of allvalues. However, economy cannot show optimal economic results if it rests only onthe market. It requires certain measures of macroeconomic policy in the field ofeconomic activities, employment, price stability, that is, inflation and problemsregarding foreign economy. The starting point for economic policy should be themarket and the market effects, in the sense that it corrects or removes itsrandomness, adjusts the development and contributes to efficiency and rationality.Therefore, the existence of certain lavel of complementarity between the marketand economic policy is very important for accomplishing development strategy,that is for rational and successful economic activitiesOf the same importance is the coordination and intergration of monetarycreditand fiscal policy(.public revenue and tax policy). The instruments ofeconomic policy, monetary and fiscal policy, are two economic disciplines, onlytwo parts, two sub-systems of the inique financial policy. Joint activity of monetaryand fiscal policy becomes a necessity – the law of modern finances. What isneeded is that both policies are complementary and at the same time used withother partial policies in order to accomplish stability in the broadest sense of theword.The strategy for successful economic reforms in our economy has to beaimed at strengthening the competittion in tne market, at making more decisivesteps towards market reforms, privatization administration and judicial reform, andall this in accordance with legal and administrative standards of the EuropeanUnion. In other words, our economy needs new investments, a clearly-stateddevelopment strategy, more rapid growth of industrial development, new technologies and repositioning in the market in order to achieve a better positioncompared to our competition and more dynamuc marketing in the foreign market.The aim of all these activities is macroeconomic stability and joining the EuropeanUnion.

Keywords: market ; law of value ; economic policy ; monetary-credit policy ; fiscalpolicy ; economic growth ; employment ; inflation ; development strategy ; complementarity ; coordination ; synchronization ; restructuring ; privatization ; competiition ; economic solvency ; macroeconomic stability ; European union

Subject(s): Financial Economics

International Relations/Trade

Public Economics

Issue Date: 2006

Publication Type: Journal Article

PURL Identifier: Published in: Economics of Agriculture, Volume 53, Number 4 Page range: 963-975

Record appears in: Institute of Agricultural Economics, Belgrade - Serbia > Economics of Agriculture

Economics of Agriculture

Economics of Agriculture

Autor: Cocovic-Krstic, Mirjana


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