AUGIMO POLITIKA GLOBALIOS EKONOMIKOS SĄLYGOMIS.

The aim of the paper to survey the academic and policy debate on macroeconomic imbalances, growth of economy, and appropriate policy to address the issue. Fiscal consolidation alone is insufficient to reduce today's global current account imbalances to more sustainable levels as they are driven by economic fundamentals: demography, catching up process in emerging economies, structure of economy, supply and demand. Overall a key issue to policy makers to ensure a sustainable long - term growth of economy and compatability of different growth models. The paper assesses recent theoretical debates and provides an outline of economic policy framework the most conducive to global environment. Scientists have been researching economic growth for a long time and theoretical debates are still going on whether public policy can and to what extent influence the growth. A stable economic and political framework facilitates economic development as a result of the accumulation of factors of production, including human capital. The growth can be elusive, and can hinge on factors well beyond domestic policy control. Whether or not public policies do, in fact, foster growth depends on the sources and impediments to growth prevailing in the economy and the wider constellation of constraints and opportunities posed by the global economic setting. Economic integration and globalisation encourage trade liberation and lead to market expansion, more investment and more rapid adoption of technology. Traditional working patterns shifting to more flexible models, value of time is growing, so does demand for high quality services, creativity in employing available technologies is defining competitive ability in productive sector. Cultural background adds exclusivity to a quality of services. Integration also creates more employment opportunities for people by setting up a legal basis for free labour movement. However, increased factors mobility poses a challenge for policy makers and raises new questions how to avoid boom-and-bust with capital flows and how to deal with fiscal pressure driven by labour mobility. New challenges in fiscal forecasting related to the fact that traditional methods -- detailed modeling approach, effective tax rate, and elasticity -- relay on historical data and miss far - reaching changes. Public policy change can influence the expected long-term growth rate. [ABSTRACT FROM AUTHOR]