THE MODERN CHALLENGES OF FISCAL AND MONETARY POLICY IN THE REPUBLIC OF ARMENIA

The article deals with the issues on fiscal and monetary policies and the economic situation in the Republic of Armenia during the crisis and post-crisis period. The analysis shows that although there have been some signs of economic growth in Armenian economy in 2010-2013, however, the main macroeconomic indicators did not return to pre-crisis level and failed to provide long-term sustainable economic growth in the country. It is argued in the article that expansionary fiscal and monetary measures should be taken for sustainable economic growth. The main target of the fiscal policy should be the reduction of the tax burden, while financing the real sector of the economy and supporting a sustainable growth of the economy should be the primary objective of the monetary policy.