Efikasnost instrumenata monetarne i fiskalne politike u suzbijanju inflacije

Abstract

Inflation as one macroeconomic variable permeates the entire economic system and affects many other macroeconomic variables in the economy, and the establishment and maintenance of price stability is imposed as one of the basic goals of economic policy of all countries. The importance of this defined topic of the doctoral dissertation is reflected in the topicality of inflation in many developing countries, but also in developed countries, and the need to apply measures and instruments of monetary and fiscal policy as the only way to successfully regulate it. Namely, only a properly set and implemented monetary framework, but with the obligatory support of the fiscal framework, can solve significant problems of an economy, such as inflation. Price instability and high inflation rates make it difficult and impossible to achieve economic growth, as well as a high standard of living for the population, as the basic goals of every country. Therefore, the social goal of this doctoral dissertation is to draw useful conclusions and practical solutions to the problem of inflation in many low- and middle-income countries where this problem is most common, but also in high-income countries where there are also many cases of high inflation. The scientific goal of the research is to use theoretical-methodological and empirical analysis to identify and qualitatively but also quantitatively define the impact of monetary and fiscal policy instruments on inflation. The subject of the research includes the analysis and measurement of the efficiency of monetary and fiscal policy instruments in the fight against inflation, consideration of the specifics of individual instruments, as well as their success in regulating the inflation rate. The paper first points out the current knowledge and theoretical explanations of inflation and the basic causes of its occurrence, theoretical approaches and the role of monetary and fiscal policy in the economy of a country, with special reference to the impact of their instruments on price stability, more precisely reducing inflation. In addition, the instruments of monetary and fiscal policy that are applied in developed and developing countries, and especially the Republic of Serbia, were identified, and, at the end of the paper, a regression analysis of the impact of monetary and fiscal policy instruments on inflation was performed. The results of the performed regression analysis confirmed the basic hypothesis of the dissertation that the inflation rate can be successfully controlled by proper and timely application of adequate measures and instruments of monetary and fiscal policy. It was especially emphasized that in order to preserve price stability, coordination in the application of monetary and fiscal policy instruments is necessary, as well as that the efficiency of monetary policy instruments is hampered by the delay effect.