Serbia Should Cut Costs, Raise Output, Fix Dinar, Mundell Says

Serbia should work to cut the government’s spending gap, boost output and fix the dinar to the euro to stabilize it before discussing whether it joins the euro region once it becomes a European Union member, said Robert Mundell, a Nobel-prize winning economist.

The Balkan country should keep current monetary policies of targeting inflation and allowing the national currency to trade freely for now, he said today at Belgrade conference.