Open AccessPolitical economy of economic policy - the monetary reconstruction program (Serbia 1994) as a case study
Author(s) -
Ljubomir Madžar
Publication year - 2022
Publication title -
panoeconomicus
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.289
H-Index - 14
eISSN - 2217-2386
pISSN - 1452-595X
DOI - 10.2298/pan2202157m
Subject(s) - destiny (iss module) , serbian , politics , remuneration , elite , economics , power (physics) , economic policy , executive power , political economy , political science , economic system , finance , law , philosophy , linguistics , physics , quantum mechanics , astronomy
The paper deals with initiation and destiny of the unique 1994 Program of combating the extreme Serbian hyperinflation. Despite the originality of the Program and decisiveness with which the related steps had been undertaken, the Program lasted not much more than half a year. It turned out to be unsustainable as it is collided with inefficient institutional framework where contracts and rule of law were not honored, and employees, in self-managed firms, decided on their own remuneration. We show that for lasting stabilization a farreaching institutional reform was needed, and for implementing such reform an equally radical reform of the political system was necessary. However, there was not political will for these reforms, since they would oust the then political and economic elite from the power.