DOMETI FISKALNE POLITIKE U PODSTICANJU PRIVREDNOG RASTA

Abstract

The issue of use of expansive fiscal instruments in order to encourage the growth has produced in the past as it does today, a significant division among economists. This division is reflected in the doctrinal and practical aspects. Doctrinal aspect touches different approaches to state interventionism. While its supporters within Keynesian teachings believe that the recession could become a permanent condition if the state does not reach for anti-cyclical policies, the supporters of the infallibility of the market believe that it would result in inflation without affecting growth. This paper presents, with inevitable reference to the genesis of bipolar thinking, the results of empirical studies and our own research on the value of the relevant fiscal multipliers as realistic measures of effectualization of fiscal stimulus to economic growth. Conferring a direct connection between appropriate fiscal stimulus packages with the growth of economic activity will give an answer to the issue about the effectiveness of cyclic measures. It turned out that the results are different for developed countries compared to those who belong to the group of developing countries. It has been proved that for developing countries it is much more useful to rely on public investment in relation to the growth of public spending. It should serve as a guide to the holders of economic power in composing the measures that will form the anti-cyclical economic policies during the current crisis.