The Second Decade of Transition in Emerging Europe

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, Serbia