Lessons from world economic crises: cleaning, remodeling and harmonizing the economy
Tome Nenovski ()
MPRA Paper from University Library of Munich, Germany
Abstract:
Every bigger economic crisis, as the current one, leaves behind a huge material damage to the world economy, and to separate national economies as well. However, every such crises reminds national authorities of the mistakes done in the past while creating and running macroeconomic policy and teaches them how they should overcome them in the upcoming period. That is the positive part of the crises: it should be understood as a good teacher who gives lessons based on which an ambient for a lasting and sustainable growth in future should be created. From the current economic crises we’ve learned that it worked as a purgatory: the weak and fragile companies fell down; the more resistant ones took the chance and became even stronger; new companies emerged which create optimism and faith in an upcoming sustainable course towards the expansive path of the economic cycle. The crisis reshapes the world economic map. Market forces are not in the same geographical borders as before. Spheres of interest are not the same as before. Competition on world markets gets new forms and players. The authorities of most of the countries became aware that they should remodel the domestic economy, if they wanted a better position in the incoming distribution of world markets. Finally, the crisis showed that a stabile economic growth may not be expected in future, either locally or globally, without appropriate harmonization of the basic instruments of macroeconomic policy: fiscal policy, monetary policy and foreign trade policy. Has Republic of Macedonia learned those lessons? How can its economy shift into a lasting and sustainable economic growth in the upcoming period? The simple and, at the same time, very complex answer would be: by remodeling its economy!
Keywords: crisis; lessons; growth; remodeling; harmonization. (search for similar items in EconPapers)
JEL-codes: E6 (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)
Published in Publishing Complex (2012): pp. 137-149
Downloads: (external link)
https://mpra.ub.uni-muenchen.de/42249/2/MPRA_paper_42249.pdf original version (application/pdf)
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:42249
Access Statistics for this paper
More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().