Croatian future based on the debt doctrine – cause-effect connection of consumption and foreign debt

Abstract

The article is based on analysis of debt economy functioning in conditions of non-conceptual economic environment in Croatia. The debt doctrine economy as a subject of culture and civilization has emerged and functions in the period of deconstruction of the world of states and construction of the world of global interests. Concurrently, the influence of supranational types of political and socio-economic system has been increasing on all levels of management ( from local to national and supranational). The basic hypothesis is that external debt in Croatia is a consequence of irrational governance, managing resources and organizing life, no matter whether it is a state or an individual. The paper has two main objectives. The first one is to conduct research into basic elements of psychology of debt economy prevalent in Croatia, and the other one is to investigate – by applying the Granger’s test - the connection between macroeconomic aggregates (personal and state costs and investments) and external debts.

Keywords

• External debt
• Economics of rent
• Grangers test
• Macroeconomic aggregates