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Theory of Economic Growth and Stability: the Case of Croatia

Luka Brkić ; Faculty of Political Science, University of Zagreb, Zagreb, Croatia


Puni tekst: engleski pdf 129 Kb

str. 17-32

preuzimanja: 3.498

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Sažetak

In this paper contributions to the theory of economic growth are discussed, starting from the standard Harrod-Domar's model, R. Solow's neo-oclassical model and the model of growth by the new Cambridge school to modern trends in the theory of growth which focus on the development of dynamic models. Dynamic models include macroeconomic aggregates such as the inflation rate, money supply and government expenditure. Special attention has been paid to the approach based on the theory of rational expectations. The author shows that the current relationship constellation of key categories in the Croatian economy is not, either from a static or from a dynamic point of view, particularly favorable for autonomous formation of strong short-term impulses for economic growth with the relative stability of prices being sustained. From the time when hyperinflation was being stopped, and at reasonable economic and social costs, the goal of the economic policy has evolved into a much more subtle and multi-dimensional demand for inducing economic growth at a low inflation rate. Within this framework the author points to the restrictions of the prevailing orthodox approach to the transformation of economies in transition, and due to its orientation only towards those policies which enable market incentives, he suggests that there is a need for broadening such a conceptual framework.

Ključne riječi

Hrčak ID:

105794

URI

https://hrcak.srce.hr/105794

Datum izdavanja:

16.1.1997.

Posjeta: 4.304 *