THE EFFECT OF DOMESTIC SAVINGS ON MACROECONOMIC STABILITY OF THE REPUBLIC OF SERBIA

Accumulation, or saving, is an essential assumption of economic development on the basis of which can be achieved and a higher level of well-being. In this sense, every society is forced to accumulate, so that it could survive and that is constantly evolving. In developed countries (USA, Germany, Japan, etc.) In the last 50 years, the savings rate - the share of savings in GDP, amounted to an average of 18% -34%. This is certainly an important assumption for the faster economic growth of national economies and the world economy, especially from the standpoint of increasing the size of the domestic product and living standards. One of the greatest curiosities of the economics of economic growth is that after almost seven decades of exploring the fundamental determinants of savings, consumption and economic growth, economists have not yet determined whether savings are growing, or economic growth is conditioned by the growth of savings - or both variables act simultaneously, which opens space with multiple balance balances and economic growth. This causal link is crucial for understanding the process itself, as well as for identifying recommendations for economic policy. If saving is only a consequence of the growth process, the policy of economic growth should focus on improving the investment climate and increasing competitiveness, and the growth of savings will be the result of the successful implementation of these policies. But if the process goes in the opposite direction, the authorities should focus on policies that encourage both the growth of savings and the growth of the savings rate. Today, Serbia has generally accepted the position in favor of the second hypothesis - that the necessary prerequisite for sustainable growth is the increase in the domestic savings rate, in order to generate investment funds.