Imperfect Fiscal Policy – the Root Cause of the Economic Crisis of the Country and the World

The prolongation of the state deficit in the debitor countries couse a payments deficit, which means the accumulation of domestic and foreign debt due to the prolongation of expansionary fiscal, which causes liquidity traps. Solving the problem of domestic debt through seigniorage, and external – through loans, causes inflation, growing impoverishment, deteriorating demographic situation due to emigration of the most productive part of the population, excess mortality over birth rate, deteriorating production structure, rising unemployment, increasing share of the shadow sector of economy, depreciation of national currency, the outflow of capital, reducing the benefits of foreign economic relations. World hybrid warfare reduces the efficiency of economic resources.