Abstract
Despite numerous studies and polarized debate, no consensus on the implementation of fiscal austerity has been achieved because this complex subject has not been the subject of a sufficient methodological exploration. Emphasis should be placed on defining the methodology of austerity and gathering statistical data to influence the implementation of social transfer policies. In addition, it is necessary not only to take a hybrid approach to fiscal and monetary policy but also to adopt economic laws and quantitative economic relationships. The benchmarking country used in this paper is Croatia. The outcome of this research can serve as the basis for future decision-making and research.
Highlights
The concept of “fiscal austerity” and its adjustment has attracted considerable attention in recent years
Despite numerous studies responding to the issues of whether governments should adopt austerity despite their weak economies and whether balanced budgets can ensure sustainable economic growth, because these complex issues have not been the subjects of a sufficient methodological exploration, there is no consensus—only a polarized debate
Structural imbalances are reflected in the decline in annual percentage growth rate of GDP recorded by Croatia records since the beginning of its transition
Summary
The concept of “fiscal austerity” and its adjustment has attracted considerable attention in recent years. This focus on fiscal austerity is of particular importance, especially in transitional countries affected by declining GDP, decreasing wages and social protections, increasing inequality, balance-of-payments difficulties, and a sharply declining aggregate demand. The EU’s authority over new Member States includes the authority to monitor national fiscal policies to impose new rules. Governments expected to avoid creating deficits Vizja Press&IT. Despite numerous studies responding to the issues of whether governments should adopt austerity despite their weak economies and whether balanced budgets can ensure sustainable economic growth, because these complex issues have not been the subjects of a sufficient methodological exploration, there is no consensus—only a polarized debate
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