Dealing with Inflation and Unemployment as the most Significant Macroeconomic Problems - a Precognition for Integration (Aspects of the Macedonian Economy)

Karadjova, Vera and Simoncheska, Lidija Dealing with Inflation and Unemployment as the most Significant Macroeconomic Problems - a Precognition for Integration (Aspects of the Macedonian Economy). In: International Scientific Conference "European Integration Processes" - Faculty of Economics - Nis, 18 October 2005, Nis, Serbia.

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Globalization and integration as contemporary tendencies in Europe and in the World are objective processes of connection of the national production regions and business conditions in a global system of production, trade and consumption. This process, conditioned by the objective factors that came from the continuity of the development of the production forces in the world, scientific and technological progress, informatics technology, traffic and modern means of communication, globalization of the financial flows, the global aspects of employment, the necessity of openness of the national economies and etc. make it impossible for any economy to stay out of the integration process. But, the crucial question is about the degree and the dept of the implementation of the integration and the position the national economy will manage to win in that process. Because the integration offers positive processes and changes but in same time it is a dangerous process that creates contradictions and problems, mostly for the weakly developed economies like spreading of the uneven economic development, the dominant role of certain countries and the competition between the regions, the global interdependence between the countries and etc.
Therefore, an imperative for the national economies is to create an optimal ratio between the openness of the economy and the functional integration in the internationally dispersed economic activities and to minimize the economic expenses from the inventible appliance of the international quality and quantity standards. With these crucial problems of the integration the transition countries must deal before all, among which Republic of Macedonia too. Doing that, the economic policy must give primacy to regulating the inflation and the unemployment as most important macro economic problems and bring them closer to the European standards. This process can be viewed as an imperative that will determine the ratings of the country for its positive ranking in the European economic, financial and monetary union.
This work will elaborate the direct connection between the inflation and the unemployment, the factors that condition that connection and their influence on creating the economic policy, and will review the aspects of the mentioned problems that concern the Macedonian economy. Since its independence, Republic of Macedonia hasn’t had any problems with inflation but therefore a huge problem on the road towards integration is the enormous unemployment, the partial usage of the production factors, and GDP that is under the potentials of the country. It should be kept in mind that the unemployment is a central problem of all modern market economies and many countries have to deal with it, both developed and countries in development. The theory and the practice confirm that in the market economy full employment happens rarely and accidentally and therefore, the macroeconomic policy must be directed towards dealing with the two crucial problems of the modern market economies – inflation and unemployment.

Key words: integration, globalization, transition economies, macro economic policy, inflation, unemployment, Macedonian economy

Item Type: Conference or Workshop Item (Paper)
Subjects: Scientific Fields (Frascati) > Social Sciences > Economics and Business
Divisions: Faculty of Tourism and Hospitality
Depositing User: Prof. d-r Vera Karadjova
Date Deposited: 27 May 2020 22:18
Last Modified: 27 May 2020 22:18

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