THE ROLE OF THE MARKET AND THE STATE IN THE MANAGEMENT OF LIMITED RESOURCES: THEORETICAL FOUNDATIONS, EMPIRICAL EVIDENCE AND POLICY IMPLICATIONS – THE CASE OF NORTH MACEDONIA

Trenovski, Borce (2026): THE ROLE OF THE MARKET AND THE STATE IN THE MANAGEMENT OF LIMITED RESOURCES: THEORETICAL FOUNDATIONS, EMPIRICAL EVIDENCE AND POLICY IMPLICATIONS – THE CASE OF NORTH MACEDONIA. Forthcoming in: Paper presented at the roundtable "The Role of the Market and the Government in the Management of Limited Resources – the Case of the Republic of Macedonia", , Vol. 1, No. Conference -discussion paper : pp. 1-7.

Abstract

Abstract: This paper examines the enduring debate on the optimal balance between market mechanisms and state intervention in the allocation of limited resources, with a particular focus on North Macedonia as a small, open economy with a fixed exchange rate. Rather than offering a comprehensive theoretical survey, the paper synthesises findings from a series of the author's empirical studies covering macroeconomic policy effectiveness, public spending efficiency, fiscal transparency, inequality, local government finance, and monetary policy communication. The findings consistently suggest that neither pure market fundamentalism nor maximalist state intervention provides an adequate response to the structural challenges of a transition economy. What is required is an intelligent, evidence-based coordination of policies calibrated to the specific institutional context.

• Item Type: MPRA Paper
• Language: English
• Keywords: Keywords: market, state intervention, fiscal policy, monetary policy, limited resources, North Macedonia, public spending efficiency, fiscal decentralisation
• Subjects: E - Macroeconomics and Monetary Economics > E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook > E61 - Policy Objectives ; Policy Designs and Consistency ; Policy Coordination; E - Macroeconomics and Monetary Economics > E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook > E64 - Incomes Policy ; Price Policy; H - Public Economics > H1 - Structure and Scope of Government; H - Public Economics > H3 - Fiscal Policies and Behavior of Economic Agents

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