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Mirjana Lučić And Vladan Ilić, General Managers At Saint-Gobain

Anniversary Year

Saint-Gobain is a world leader in modern and sustainable construction that designs, produces and distributes materials and services for the construction sector and industrial...

UniCredit Bank Serbia

Why It’s Important To Save: The Future Is Certainty

There’s no need to talk about the fact that it’s important to find a certain degree of stability and certainty under the current circumstances...

Nemanja Bućinac, Retail Leasing Director, MPC Properties

Changing With The Times

UŠĆE Shopping Center has been the market leader for over 13 years. In order to retain this position, UŠĆE is preparing for a major...

Stylianos Tsoktouridis, Director, Alumil Yu Industry A.d.

Superior Customised Solutions

Alumil is one of the largest brands producing windows and doors, with 12 factories across Europe, including one in Serbia. The company continues, year-on-year,...

Sanja Stanimirović, CEO, Testeral

Demanding Markets Develop Quality

Testeral exports 95 per cent of its production to the markets of Western Europe and America, and one of the company’s goals is to...

Slaviša Tasić, Professor Of Economics, Researcher

Sobering Up Comes Next

Sobering-up will follow during this year, through a more restrictive monetary policy that will also be transferred to Serbia. That means reduced liquidity, a slower economy, fewer new jobs and rising interest rates. Rising inflation is no longer the main risk – we are awaited by more unpleasantness through the extinguishing of inflation that will follow

We’re accustomed to inflation. The only periods without inflation in the living memory of today’s Serbian citizens were three short periods when the dinar had a fixed exchange rate: the period of the fixed exchange rate of Ante Marković, the period of the fixed exchange rate of Dragoslav Avramović and the last few years, which were again marked by a de facto fixed exchange rate.

We were to blame for all the inflation experienced to date. Prior to 2001, the inflation and hyperinflation that we experienced were created by the state financing itself through the printing of money. In more recent times, inflation was generated by the NBS whenever it lacked the ear to maintain the exchange rate, as this country’s only successful anchor of monetary policy.

However, this current inflation is something we didn’t create ourselves. The dinar is stable against the euro, but that’s no help given that prices are now also rising in the eurozone. The European Central Bank, as well as other key central banks around the world, reacted to the pandemic by turning on the taps and allowing the money to flow. They increased liquidity in order to prevent the economic crisis triggered by the pandemic from deepening.

They succeeded in preventing an even greater crisis, but it seems that they overexaggerated. Monetary policy works with a delay of unknown duration. You print money today, and inflation comes later – but you don’t know precisely when it will come and to what extent. The inflation that we now see in the eurozone – and in zones of dollars, pounds, roubles, Turkish lira and other currencies – is a consequence of the excessive monetary expansion of the previous two years. Serbia, which previously imported price stability through a fixed exchange rate, has now imported inflation through just such an exchange rate against the euro.

Prior to 2001, the inflation and hyperinflation that we experienced were created by the state financing itself through the printing of money. In more recent times, inflation was generated by the NBS whenever it lacked an ear to maintain the exchange rate, as this country’s only successful anchor of monetary policy

The European Central Bank will not allow things to spin out of control. It currently has inflation of close to 5% and its task is to return to the targeted level of 2% annually. If the NBS continues to peg the dinar to the euro, it will continue to import the policy of the European Central Bank. That’s why further inflation flare-ups are unlikely.

However, the problem hasn’t dissipated. On average, companies and countries fared a little better than they’d expected last year. They had higher revenues. That is the early effect of inflation. Like an alcoholic beverage, it initially makes things better.

This year, the sobering-up will follow through a more restrictive monetary policy, which will be transferred to Serbia as well. That means less liquidity, a slower economy, fewer new jobs and rising interest rates. The main risk is no longer rising inflation – more trouble awaits us through the quenching of inflation that follows.

Sobering-up will follow during this year, through a more restrictive monetary policy that will also be transferred to Serbia. That means reduced liquidity, a slower economy, fewer new jobs and rising interest rates. Rising inflation is no longer the main risk – we are awaited by more unpleasantness through the extinguishing of inflation that will follow.

H.E. Mohamed Abdullahi Ahmed, Ambassador Of Somalia To Serbia

Somalia Is Potentially A Rich Country

Despite the fact that Somalia has experienced a variety of situations over the past 31 years, including civil wars, famine, and international terrorism that...

Comment by Zoran Panovic

Ana, Again

Of course, it’s absurd that, on the day when the gay prime minister received her third mandate, Serbian President Aleksandar Vučić simultaneously cancelled the...

Bojan Klačar, Executive Director Of The Centre For Free Elections And Democracy (CESID)

Open Doors

The return of the opposition to the parliament will lead to numerous changes. The national assembly will once again be pluralistic, with MPS that...

Despot Kovačević, Assistant Professor/Lecturer At The University Of Belgrade Faculty Of Political Sciences

Chance For The Opposition To Profile Itself Among Voters

The post-election dynamics of relations within the opposition showed that a debate will be led on the topic of genuine opposition to the regime...

Total Revenues Of Video Game Industry In Serbia Amounted To 125 Million Euros In 2021

The video game industry in Serbia employs 3,000 people who work in 130 gaming companies, with total revenues last...

Leaders Of 44 Countries Invited To The First Meeting Of The European Political Community

Representatives of 44 countries have been invited to the first meeting of the European political community, which will be...

Serbian Flag In Times Square

The flag of Serbia with a message about friendship between Serbia and the United States, as well as an...

Vučić At The UN: What Is The Difference Between The Territorial Integrity Of Ukraine And Serbia?

What is the difference between the territorial integrity of Ukraine and the territorial integrity of Serbia, which was violated...

Scientists In China Create World’s First Cloned Wild Arctic Wolf

The successful cloning of the species which is native to the High Arctic tundra of Canada's Queen Elizabeth Islands,...

Total Revenues Of Video Game Industry In Serbia Amounted To 125 Million Euros In 2021

The video game industry in Serbia employs 3,000 people who work in 130 gaming companies, with total revenues last...

Leaders Of 44 Countries Invited To The First Meeting Of The European Political Community

Representatives of 44 countries have been invited to the first meeting of the European political community, which will be...

Serbian Flag In Times Square

The flag of Serbia with a message about friendship between Serbia and the United States, as well as an...

Vučić At The UN: What Is The Difference Between The Territorial Integrity Of Ukraine And Serbia?

What is the difference between the territorial integrity of Ukraine and the territorial integrity of Serbia, which was violated...

Scientists In China Create World’s First Cloned Wild Arctic Wolf

The successful cloning of the species which is native to the High Arctic tundra of Canada's Queen Elizabeth Islands,...

Total Revenues Of Video Game Industry In Serbia Amounted To 125 Million Euros In 2021

The video game industry in Serbia employs 3,000 people who work in 130 gaming companies, with total revenues last...

Leaders Of 44 Countries Invited To The First Meeting Of The European Political Community

Representatives of 44 countries have been invited to the first meeting of the European political community, which will be...

Serbian Flag In Times Square

The flag of Serbia with a message about friendship between Serbia and the United States, as well as an...

Vučić At The UN: What Is The Difference Between The Territorial Integrity Of Ukraine And Serbia?

What is the difference between the territorial integrity of Ukraine and the territorial integrity of Serbia, which was violated...

Scientists In China Create World’s First Cloned Wild Arctic Wolf

The successful cloning of the species which is native to the High Arctic tundra of Canada's Queen Elizabeth Islands,...
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