Šarganović, Haris
May 2012
Business Consultant / Poslovni Konsultant;May/Jun2012, Vol. 4 Issue 18/19, p85
Academic Journal
This paper shows the effectiveness of monetary policy with the goal of streamlining the market towards economic development. The first part of this paper shows the impact of inflation on economic growth, which is reduced by inflation growth as well as how monetary policy plays a crucial role and so impacts the rise or fall of inflation. The second part points out the claims that the solution is the flexibility of monetary policy. Monetary policy must be flexible in order to allow the impact of other economic policies primarily the fiscal policy with which it will in a synchronized manner act on the market, and so create conditions for a stable economic growth, which is a precondition for creation of the welfare state.


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