Theoretical Analisis of the Effects of Fiscal Policy in Montenegro

The introduction of dollarization (euroization) in Montenegro has had its consequences for the subsequent economic policy, whose main pillar has become the fiscal policy. Given that fiscal policy must be directed towards the achievement of a number of fiscal and non-fiscal objectives, the importance of the careful and adequate management by its holders gains special importance. In the context of the euroized Montenegrin economy, fiscal policy is the most important, and practically the only relevant instrument of macroeconomic management in Montenegro, especially in terms of the realization of the effects of stimulus, stabilization and redistribution.