Effects of fiscal policy on the maintenance of macroeconomic stability in Serbia in the 2001-2007. period
This paper presents the research conducted to find out the effects of fiscal policy in Serbia over the 2001-2007 period. A dominantly procyclical fiscal policy had an unfavourable impact upon both external and internal balances. Larger budgetary revenues were followed by equally increased budgetary expenditures, which in terms of inadequately flexible aggregate supply created adverse pressures on the macroeconomic stability maintenance.
