Original scientific paper
THE CAUSES OF THE PUBLIC FINANCE CRASH IN THE SOCIALIST FEDERAL REPUBLIC OF YUGOSLAVIA
Miljenko Brekalo
; Institute Ivo Pilar
Snježana Penava Brekalo
; Second grammar school Osijek
Abstract
The Socialist Federal Republic of Yugoslavia (SFRY) was a federal
state consisting of six socialist republics and two socialist autonomous
provinces. The self-governing form of government that
existed in the SFRY, was based on the leading role of the League
of Communists of Yugoslavia. Applying the hierarchical principle
of democratic centralism, the League governed the state, including
all the social activities, and it organized the economic activity that
was based on the collective. Thus, the main feature of this rule was
the absolute state-party control. The public finances were created
by applying a very high degree of ethatization as well as the planned
economy. Due to these two postulates, the public needs were
often financed by generating inflation, or by using gray money. The
unemployment in the SFRY was a very big problem, which was
never solved completely.
Keywords
SFRY; inflation; hyperinflation; public debt; external debt; gray emissions; economic stabilization
Hrčak ID:
233747
URI
Publication date:
31.12.2018.
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