PLATNOBILANSNA POLITIKA REPUBLIKE SRBIJE U NOVOM MILENIJUMU: IZAZOVI, MOGUĆNOSTI I OGRANIĈENJA

Abstract

For open market economies, balance of payments policy represents one of the most significant segments of economic policy and, at the same time, a representative indicator of its effectiveness. Therefore, the efficiency of the balance of payments policy depends on its alignment with broader macroeconomic goals, as well as on the ability to adapt to global economic trends. The essence of successfully conducting balance of payments policy is based on establishing external balance, whereby this task is considerably more delicate in countries with chronic balance of payments deficits, as is the case with the Republic of Serbia. In line with the above, the subject of this paper is the evaluation of the balance of payments policy of the Republic of Serbia in the new millennium. The research results suggest that the chosen model of balance of payments policy in the Republic of Serbia, which relies on financing the balance of payments deficit, is unsustainable in the long run, since its application does not eliminate the fundamental causes of external imbalance. At the same time, the paper points out the key challenges in conducting balance of payments policy in the coming period in the event of lower inflows of foreign capital and personal transfers.