In this book Ognjen Radonjić and Srdjan Kokotović reject widely prized and adopt paradigm of efficient markets and universally undisputed measures of economic success of small open economies, such as macroeconomic stabilization and full liberalization and deregulation of financial and trade flows. In contrast, as authors emphasize, if policy creators do not limit the level of debts of local market participants, most importantly the short-term debts and debts denominated in foreign currency, which is in the most cases directed towards consumption and development of non-tradable sectors, crisis is certain.
This is because, prior to and during massive capital inflows, local economy has not created foundations for sustained development necessary not only because debts have to be repaid, but also to provide more economic independence in the future. All in all, this book represents refreshment in both domestic and international literature and indisputably bears scientific contribution to present and future analysis of this quintessential economic issue.
Professor Miodrag Zec, Faculty of Philosophy, Belgrade
Izdavač: Filozofski fakultet Univerziteta u Beogradu; 2012; Broširani povez; latinica; 24 cm; 192 str.; 978-86-86563-99-6;