Abstract
The paper points to the interaction and mutual connection of monetary and fiscal policy and their synergetic effect on economic growth. Regardless of the fact that both policies are independent in the implementation of their goals and apply different measures and instruments, they are not at odds in shaping economic policy, on the contrary, they complement each other and jointly contribute to ensuring macroeconomic stability and economic growth. In the Republic of Serbia, the joint effect of monetary and fiscal policy measures is reflected in the provision of macroeconomic and price stability and the reduction of public debt and a stable budget, which are key prerequisites for long-term economic growth.
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