The topic of this diploma paper is economic analysis of fines. Economic analysis of law as a discipline was given much less importance in Croatia than in developed Western democracies, especially the United States, but since the mid-nineties of the last entury this discipline became more interesting for legal theorists in the Republic of Croatia, and the first published articles on economic analysis of law originate from then. However, since those times until nowadays, there aren't any articles that focus on the economic analysis of fines as specific sanctions, and therefore this paper represents a research that aims to create a single comprehensive view of this discipline with a focus on fines and explain the importance of these sanctions from an economic point of view and its effect on criminal prevention. After the theoretical and empirical study of the effects of fines from the economic point of view follows the conclusion that economic analysis of law as a discipline should be more often used in the Croatian legal system, and that the Croatian courts should impose more fines in criminal proceedings.