Effects of monetary-exchange policy to development of agriculture competitiveness in the Republic of Serbia

The Republic of Serbia has one of the most important resources - agricultural resources, which are affected by the monetary - exchange policy, and that, as such, is the backbone of Serbia's economic development, which should be based on the exploitation of agricultural land since this resource puts our country in the region with expressed relative, comparative advantages in relation to a large number of countries. The rise in prices of agricultural products in the long period was much slower than the growth in the price level, which is the agricultural activity in the context of primary production was placed in a very disadvantageous position. The active fiscal policy, through excise taxes on petroleum products leads to higher costs in farming than in any other area. Consumption of petroleum products is the biggest expense that directly participate in the production process. Neither in terms of monetary -exchange policy situation is not favorable. The unreal exchange rate policy stimulated imports and discouraged real exports of agricultural product results in the "unrealistic" low productivity in this sector. In this regard, it is important to establish an appropriate economic policy through monetary, fiscal and exchange mechanism, in order to create a competitive advantage of agricultural production in this area.