| Opis: | The master's thesis examines the relationship between inflation and public debt and their impact on macroeconomic stability and economic activity. Inflation, as one of the key indicators of economic status, significantly affects purchasing power, consumption, and investments, while public debt reflects the financial policy of the state and its ability to manage budgetary resources. The theoretical part presents the basic macroeconomic aspects of inflation, its factors and impact on economic indicators, the role of monetary policy in managing it, and the occurrence of deflation. Special emphasis is placed on the analysis of the economic effects of inflation in Slovenia and the European Union countries. Furthermore, public debt is discussed, with its causes, movement, structure, and legislative frameworks of borrowing, as well as methods of effective management analysed. The empirical part of the master's thesis is based on the analysis of data on inflation and public debt in Slovenia from 1995 to 2024. The purpose of the research was to study the relationship between the growth of public debt and inflation and to examine the impact of government borrowing on price stability and economic policy. Using regression analysis, key macroeconomic variables were analysed, the effects of inflation on the volume and structure of public debt were identified, and individual categories of public spending were assessed based on their impact on the country's indebtedness. The results of the research confirm that there is a significant correlation between inflationary pressures and the dynamics of public debt, which highlights the importance of coordinated fiscal and monetary policy for the long-term stability of the Slovenian economy. At the end of the master's thesis, suggestions for improvements are also given, among which the need for the formation of a proactive fiscal policy is emphasized, which would allow for more effective management of public debt during periods of higher inflation and contribute to greater fiscal stability of the state. |
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