The role of economic schools in regulating economic crises. The concept of state regulation of the economy, its main goal and task
The role of the state in economic regulation throughout the history was to one degree or another the subject of economic science. In any territorial education, the state not only carried out regulatory activities to legal regulation of public life, but also revenue revenues, forming budgets for the implementation of common functions. However, the role and boundaries of state economic activity have always been the subject of discussion. Depending on the overall conceptualination, economic scientific schools evaluate the essence and importance of the toolkit of state regulation of the economy and economic policies. The main provisions of modern economic theories about the role of the state in the economy are presented in Scheme 1.1.
One of the first scientific schools that determined the economic functions of the state became mercantilism (XVI-XVII centuries), whose largest representatives are T. Man, J. Stewart, J.-B. Colbert. Based on the fact that the source of wealth is foreign trade, the results of which increase the amount of gold and silver in the country, mercantlers justified the need for the existence of tough measures of state administration, aimed at preventing the outflow of money from the country, export support.
Economic policy support national manufacturers and merchants, import restrictions protectionism. Elements of such policies are often used today. Developed countries in certain situations apply the measures to support exporters and protect the domestic market from imports, strive for the balance of trade and balance sheets. One of the forms of obstacles to protectingism is the World Trade Organization (WTO), created to withdraw economic and administrative barriers that restrain international competition.
Scheme 1.1. The main theories of state regulation of the economy
The essential increment of scientific knowledge about the role of macroeconomic regulation has made theory of physiocrats (XVII century), whose representatives are F. Kene, A. R. Turgo. Speaking for freedom of trade, representatives of this school considered the source of wealth of the state agricultural production, labor in agriculture, since only a clean product is created in this area. The merit of this school is the output of the study on the macroeconomic level, the analysis of reproduction, the circuit of social product and cash income. At the same time, it was concluded that the need to respect intersectoral proportions between agriculture and industry. The amount of money in circulation is determined by the needs of the relationship between production sectors.
The theory of physiocrats raised the issue of developing industry priorities in economic policy (agriculture), supporting these priorities to the instruments of state regulation (taxes, duties).
The theoretical basis of the state's non-interference in the economy shared by a majority economists to today is definition of the principles of self-regulating market A. Smith, set out in the work "Research on the nature and causes of the wealth of peoples" (1776). According to A. Smith's theory, the market mechanism is moving thanks to the rational solutions of its participants, the constant adjustment is carried out by free competition, the signals of which are given prices. The market movement is sent by the "invisible hand" of supply and demand, where there is no place for state regulation. In different versions, this market model is reproduced in later liberal market economy models.
However, based on the practice of the real functioning of the state, A. Smith examines the most important functions and tools for state functioning, such as budget and taxes. Among the tasks of the state (monarch) A. Smith calls the creation and support of public enterprises and institutions that for reasons for the lack of profitability will not create individuals, but necessary to the whole society. In modern economic terms, this situation is deployed to the function of manufacturing public goods and creating positive external effects. A. Smith identified the basic nationwide expenses to which the state costs for defense, justice, infrastructure (roads, bridges, ports) necessary for the development of trade, as well as the cost of training and education of the younger generation.
Much of attention A. Smith paid a tax system research, identifying its main principles: equality of all before taxes, accuracy, convenience. An indispensable condition for the functioning of the state A. Smith considered the balance of income and expenses: an increase in public debt can lead to the ruin of the state.
The overall evolution of economic theories, denying the active role of the state in the economy, violated the theory of J. M. Keynes ("General theory of employment, percentage and money", 1936).
Unlike the positions of other scientific schools keynesianism Primary when considering the motion of the market, it considers not a proposal, but aggregate demand and denies the possibility of complete self-organization of the economy with the help of prices, salaries, interest rates. The expression of market non-equilibrium is unemployment, reduction of production. Analyzing the cumulative demand, J. M. Keynes showed the circumstances of the lack of investment in the economy and the need for state intervention to achieve the effective use of available resources and economic growth. The main problems of the market economy - unemployment and reducing investment. The state from its sources should invest financial funds into the economy, stimulate demand and thereby maintain an effective equilibrium. The source of additional investment in the economy is the state budget. Therefore, budget and tax instruments of state regulation are dominant, and budget deficit acts as one of the ways to stimulate demand.
Before the early 70s. XX century Keynesianism was the most popular theory, on which the economic policy of developed countries was based. However, other economic theories that justified the possibility of market self-regulation were published on the fore. In the 1970s. On the wave of a serious global energy crisis, two circumstances revealed: a decline in production and inflation that received a generalized name stagflation.
According to Keynesianhood critics, this theory could not sufficiently explain the new phenomena of economic development, and their conclusions for economic policies in practice deepened negative consequences.
Among such theories is the most significant monetarism(M. Friedman "Inflation and money circulation", 1969). Monetarism as a basis for the economic policy of developed countries was in demand as the crisis of the Keynesian concept is deepened, in the context of new phenomena of economic life - inflation and periodic recession.
Monetarism, based on recognition of the possibility of self-regulation of a market economy without state intervention, special attention is paid to the study of monetary circulation, financial sector, analysis of the causes and methods of combating inflation. The course of the economic cycle according to monetarism is determined by the cyclic of money supply in circulation, which determines the business cycle. Public investments and one of their sources - budget deficit - only activate inflation processes. Therefore, the main object of regulation should be a monetary mass, the constancy of its growth, depending on the value of the rates of gross domestic product. Note that the regulation of the money supply is not the executive function, nevertheless refers to the sphere of national institutes of macro regulation - central banks (federal reserve system in the USA). The macro regulation of the economy by targetting money, varying interest rates, the norms of mandatory reserves and other financial resources indicates the need to macro regulating the financial sphere.
However, as shown by the global economic crisis, which began in 2008, the monetary methods of regulating the economy themselves do not give non-infuridated results - the complication of economic relations in the global economy, apparently requires the adjustment of these methods. In almost all countries, the exit from the crisis has become budget financing, an increase in the deficit of the state budget.
Among scientific schools, denying the active role of the state in the regulation of the economy, there are also different branches of modern theories of neo-secretationalism (R. Kouz, J. Bucanen, D. North, etc.). However, based on the position of the need to determine the rights of ownership, contractual relations and regulatory activities of the state in this area, representatives of the theory of public selection allocate "market failures", which should replenish the state, i.e. The mechanism of market self-regulation itself is questioned. Such "failures" includes monopolies, asymmetry of information, the need to produce public goods and external effects. In turn, according to this theory, the state has its own "failures" (lack of reliable information, features of the political cycle, bureaucracy and corruption), so the problem is to optimize and the effectiveness of the economic functions of the state.
The practice of economic development has shown that the state impact on market relations cannot be limited exclusively to regulatory activities to establish and implement property rights. The newest story, starting from the 60s. XX century, testifies to the active role of the state in the economy.
The role of the state in the financial sphere increased, its influence on the stability of the financial system is carried out, first of all, through the macro regulation of interest rates, the implementation of credit policy measures, national currency exchange rates. The state, conducting the procurement of goods and services for national needs, has become a subject of business activities, affects market prices, supply and demand. Budget, tax and financial and credit instruments act as real factors of impact on economic development, stimulating and supporting stability and dynamics. The transfer of state transfers to unprotected segments of the population and in general, investments in human capital. According to the World Bank, for three and a half decades (from 1960 to 1995), the scale of the state presence in the economy of industrialized countries has increased twice.
Under these conditions, the modern economy is characterized as mixed. Its dynamics and mechanism are based on the actions of the market and the state.
In modern economic science, despite the continuing discussions and contradictions, there is a general approach that recognizes the following areas of state activities in the economic sphere:
- - coordination of macroeconomic policies (taxes, budget, regulatory regulators);
- - entrepreneurial activities at certain scales (government procurement);
- - regulation of monopolies;
- - the impact on economic growth (investments in human capital, the effectiveness of state institutions);
- - provision of benefits to vulnerable groups of the population (pensioners, unemployed, disabled).
The key objectives of the theory and practice include the definition of the borders of the participation of the state in economic processes, assessing the effectiveness of state regulation actions, the search for forms and methods that do not undermine the foundations of the market mechanism.
The emergence of certain views and concepts is always associated with objective conditions for the development of society, its economic system. The attitude to state intervention in the market economy was different at different stages of its formation and development.
This can be traced at various economic schools.
The economic policy of the state during the initial accumulation of capital and the formation of market relations with the XV century. Until the middle of the XVII century. reflected the interests of commercial capital and industry (then they were connected).
The views on the need for state regulation for development in the country of trade and industry were then developed by an economic school - mercantilism (FR. Mercantilisme; IT.mercante is a merchant, merchant). Mantilism as an economic school has developed in England, Italy and France. The most prominent representative of this school is A. Monkeyen (Fr.). For the first time introduced the term "political economy". The main work was called "the treatise of political economy" (1615).
Mercalistists considered the main source of wealth of money, more precisely, trade, and therefore the accumulation of money wealth can be achieved with the help of state power, support for artisans and trading protectionism in the foreign market.
In the middle of the CHVS in. As a reaction to mercantilism in France, a new direction of economic thought occurred - physiocration (rp.philsis - nature + kratos - power, strength, domination). FRF. KENE - "Economic Table" (1758).
The physiocirats believed that the attention of governments should not be addressed to the development of trade and the accumulation of money, but on agriculture, where, in their opinion, the richness of society is created.
In practical conclusions, physiocrats have sought the implementation by the state of economic policies aimed at developing major agriculture.
With the development of market relations, the class of entrepreneurs began to consider state intervention and related restrictions as interference in their activities. The changed situation confirmed the need to create a new system of economic knowledge, which found its expression in the formation of a classic school. Bright representatives of this direction of economic thought: V.Petti, A.Smith, D.Rikarto.
For the first time, the main ideas of the classical school justified A. Smita in his "research on the nature and causes of the wealth of peoples" - (1776). According to his interpretation, a market system is capable of self-regulating, which is based on a "invisible hand" - personal interest based on private property and related to the desire to obtain profits. Personal interest acts as a majority of economic development. One of the central ideas of the teachings A. Smita was the idea that the economy would function more efficiently, if we exclude its regulation by the state.
The best option for the state is to adhere to the policy of Laisser Faire (FR. Expression: Let everyone goes to be sought) - non-interference of the state. English version of this expression: Let IT Be - let everything goes as it goes. Since the main regulator of the economy, according to A.Smit, the market acts, therefore, a complete freedom must be provided to him (market).
The classic direction dominated quite a long time, while crisis phenomena 1929-1933. Doubted the many of his provisions. Representatives of this direction believed that the mechanism of market competition automatically ensures equality of supply and demand and any long disturbance of this equilibrium and deep economic crises are excluded. It was argued by the fact that in the market conditions prices, wages, interest rates are quite flexible and quickly change under the influence of supply and demand, adapting to a new market situation.
An important stage in the theoretical awareness of the role of the state in a market economy was associated with the name of the outstanding English economist J.Kanes. The ideas that committed a coup in classical views on the market economy were set out in the CN. "Communication Employment, Percentage and Money" - (1936). This means the emergence of a new direction in views on the GRE - Keynesianship. The significance of Keynesian ideas on economic thought and economic practice is difficult to overestimate. The economic policy reflecting the ideas of Keynes was held by most developed countries of the world after World War II. It is believed that it was precisely she in many ways contributed to mitigating cyclic fluctuations in the economy of these countries.
Keynesian theory, based on the actual facts of the first half of the XX century, proceeded from the fact that prices, interest rates, and mostly wages are not quite flexible on the market and change in the short term slowly, and not fast - as in the classical version . Therefore, they move to the equilibrium point of total demand and sentences in slow motion.
Keynes believed that the classical theory could not explain what ways to reduce unemployment, which, becoming mass, requires more and more public funds and creates an unfavorable social situation. He explained that the essence of macroeconomic regulation is to manage expenses when changing revenues that change much faster than inflexible prices and salary.
Unlike the classical theory, Keynes believed that the state could regulate the development of the economy, affecting aggregate demand. Cumulative demand is a real amount of national production of goods that consumers, enterprises and government are ready to buy at a given price level. It was in the lack of "effective" demand, Keynesian theory saw the main reason for crisis phenomena in a market economy.
In a purely market economy there are no such levers, I considered Keynes that would automatically contribute to the growth of GNP. Therefore, "... our ultimate goal, he wrote," may be the selection of such variables that are amenable to conscious control or management from the central authorities within the framework of the economic system in which we live. " Keynesianschitali that the state economic policy can contribute to the growth of GNP and employment. Thus, government spending growth will contribute to an increase in the GNP and thereby increasing employment. In addition, the state should stimulate for these purposes an increase in investment by increasing money circulation and reducing the rate of interest.
Cane's investment regulatory instruments also referred: increasing government investments and their effectiveness, expanding government spending and purchases of goods. As a result, production will expand, additional employees will be attracted, employment will increase.
Considering the economic instruments for regulating the aggregate demand - monetary and budget, preference was given to the budgetary.
Monetarism (eng. Money - money; Monetari - money). From the second half of the 70s - early 80s. There was an intensive search for new approaches to GRE. If, when developing Keynesian theory, the central question was employment, then the situation has changed. The main problem was the problem of inflation while recession of production (stagflation). Keynesian recommendations to increase budget expenditures and thereby pursue a policy of scarce financing in the changed conditions turned out to be unsuitable. Budget inflictions in the economy could only increase inflation, which happened in reality.
As a school in economic science, monetarism is based on market relations with monetary relations. In the post-war period, the role of monetarism revived the famous American scientist, the Nobel Prize laureate Miltonfreedman (Chicago School) "Counter-revolution in the Monetary Theory" - 1970, "Money and Economic Growth" - 1973
Unlike Keynesians, who are reducing the money minor role in determining economic activity, monetarists believe that the monetary offer is the only most important factor affecting the level of production, employment and prices. Keynesians advocate a broad intervention of the state in the interests of stabilizing the economy, and monetarists are supporters of a free market with limited state regulation.
Supporters of the monetarist direction focus on "stable demand for money", i.e. At the constancy of the growth rate of the money supply. When the mutual connection is reached between the number of money in circulation, and the cumulative demand, the constant growth of money supply allows cumulative demand to synchronously respond to the growth of the natural level of real production. In this case, the long-term work will reach full employment and price stability. In this case, the important role of the central bank in maintaining the sustainable and predictable growth rates of bank reserves and money suggestions.
Consideration of two alternative variants of mechanism and credit policies by monetarists and KeynesiansPount:
1) Monetarists believe that the change in the money supply, i.e. the money supply directly affects the aggregate demand and then on the volume of production in the country;
2) Keynesians in their mechanism for conducting monetary policies a special role is discharged by interest rates and investment spending in the impact on the volume of production in the country.
It should be borne in mind that the specific monetary policy policy of a country is not based in its pure form on the provisions of one economic school. But at the same time, it can be given a greater priority at this stage of development of one specific concept. Thus, in the United States, despite the prevailing impact of monetarism in monetary policy, it also present tools that are promoted by Keynesians - forced regulation of interest rate and investment costs.
The priority role of monetarism in the development and conduct of credit policies over the past decades in Western countries has led to a reduction in state intervention in the banking and credit sphere. In almost all countries of the West, the main responsibility for monetary policy is a central bank, which seeks to influence macroeconomic processes by more flexible (indirect) methods:
Regulation of money in circulation;
Regulation of bank reserves;
Regulation of the size of loans and loans provided to commercial banks;
Percentage rate regulation, etc.
The essence of monetarism can be reduced to two fundamental items:
1. Money play a major role in macroeconomics.
2. The Central Bank can affect the money supply, i.e. By the amount of money from money (growth of no more than 3-5% per year).
The monetarist approach is that the markets are sufficiently competitive and that the market competition system provides a high degree of macroeconomic stability. The ideological roots of monetarism go into classical economic theory. Monetarists, as well as representatives of the classic school, are nuclear supporters of the free market.
In the history of the development of world civilization, various approaches are known to assess the role of the state in the economy. Among them can be called mercantilism, classical approach, Marxism, Keynesianism, monetarism.
All modern schools can be divided into two groups: schools that advocated the active intervention of the state in the economy, and schools that took the state a very minor role.
Mercantilism.The main economic school in the period of the Middle Ages was the school of mercantilism. Mercantism is the view that took place among the English economists of the 16th century, the essence of which was that the state should play an active role in the country's economic life in order to promote the wealth of the country and the king. They are facing trade and crafts. The source of the inflow of wealth, the means of multiplication of money serves foreign trade.
The classical theory of non-interference in the economy.An important step of the development of ideas about the role of the state was the work of A. Smita "Research on the nature and causes of the wealth of peoples", in which he argued that "the free game of market forces creates a harmonious device." One of the main ideas of Smith is an idea of \u200b\u200bthe "invisible hand", which sends the course of economic development in the right direction.
In accordance with the classical approach, the state should only be engaged only to ensure the safety of human life and the protection of his property, resolve disputes, in other words, to do what an individual is either not able to fulfill independently or makes it ineffective. In its description of the market economy, A.Smita argued that it was precisely the leader of an entrepreneur to achieve his private interests, the main driving force of economic development, increasing ultimately well-being of both his own and society as a whole.
The main thing, according to the classics, was that the main economic freedoms should be guaranteed for all business entities, namely the freedom to choose the sphere of activity, freedom of competition and freedom of trade.
Marxism - Economic theory, based partially on the representations of the classics and the decisive tasks of the fundamental reorganization of the system of economic relations of capitalism on the way:
· Liquidation of private ownership of the means of production;
· Introduction of a new product distribution system in accordance with labor theory of value;
· Implementation of the state regulation system in the form of economic planning of economic development based on the goals and tasks formulated in advance.
K. Marks first put the problem of achieving a general economic equilibrium in the economy in the way of constructing reproduction schemes, which find out the conditions of balance of balance with simple and expanded reproduction. Marx created a fundamental scheme of interconnections between sectors, which can be considered as a preoperation of intersectoral balance ideas.
Neoclassical Schooldoes not deny the need to regulate the economy (in this one of the differences from classics), but it believes that it should be limited and selective. The state is intended to create conditions for effective economic activities. The market mechanism itself is capable of providing a balanced economic growth (in this similarity in views with classics).
Basic monetarist approach existing within the framework of the neoclassical theory, the postulate of the strict connection of the money supply and the speed of their treatment with the volume of production and price levels. When analyzing economic relations, supporters of the monetary approach believe that the rate of money is stable. This statement directly contradicts Keynesian postulates about the direct proportional dependence of the speed of circulation of money from the interest rate and inversely proportional dependence on the money supply.
The principle of economic equilibrium is one of the defining provisions of neoclassics. Equilibrium in the economy has a diverse character. This is the balance of demand and suggestions, this is the balance of production resources, this is the balance of financial indicators.
The theory of general economic equilibrium is based on the studies of economic growth, the development of the concept of the welfare of the population, the construction of a system of intersectoral ties.
Keynesian concept Got distribution in the 30th century in the 30th century. After the deepest recession of the US economy, J.Keyins put forward the theory in which he refuted the views of the classics to the role of the state. J.Kanes's theory can be called "crisis" as he considers the economy in a state of depression. According to his theory, the state should actively interfere in the economy due to the absence of the free market of mechanisms that would actually provide the exit of the economy from the crisis.
The merit of J.Keynes is that he has developed a new theory of production and employment regulation. He proposed ways to adjust the market mechanism with the help of state macroeconomic regulation, introduced new methodological approaches to an arsenal of economic science: substantiated the role of the cartoon effect, credit policy. At the same time, J.Kains believed that the state should affect the market in order to increase demand, as the cause of capitalist crises - overproduction of goods.
Keynes offered several impact tools. This is a flexible monetary policy, active budget policy and direct creation by the state of workplaces.
The state regulation proposed by J.Kains allowed us to weaken cyclic oscillations for more than two post-war decades. However, since the beginning of the 70s. There was a discrepancy between the possibilities of state regulation and objective economic conditions. The Keynesian model could be sustainable only in the conditions of high growth rates, which created the possibility of redistribution without prejudice to the accumulation of capital.
In the 70s, the reproduction conditions deteriorated sharply. Keynesian ways out of crisis only spinned the inflationary spiral. Under the influence of this crisis, a cardinal restructuring of the state regulation system occurred and a new, neoconservative model of regulation.
Neokeinsians - Supporters of the Economic Theory of J.Keynes, who believe that cyclic oscillations and inflation are caused by changes in total expenses and the proposal of money. Neokeinsians advocate active stabilization policy with the preferred use of tools not only on the demand side, but at the same time budget and tax regulation.
The multiplicity in theoretical ideas relative to the role of the state in the economy is primarily due to the absence of a holistic conceptual idea of \u200b\u200boccurring in the economic life of phenomena, the predominance of an empirical approach to the development of scientific generalizations on the processes occurring in the economy.
The absence of a unified and holistic economy theory does not allow to reasonably approach the assessment of the role and forecasting of actually observed phenomena and processes.
The application of the methods of state regulation of the economy should be based on the entire system of economic theories, since each of them was caused by some important problem (phenomenon) and retains its relevance and so-in.
2 Economic Schools on State Regulation of the Economics
State regulation of the economy has a long history and goes back to the end of the Middle Ages. The attitude to state intervention in the economy at different stages of its formation was different.
The merit of the first representatives of economic schools is not that they found an exhaustive response to the assigned question, but in what they identified him. To deliver the problem - it means to outline the direction in which the search should be kept, feeling, let several in common, vague form, the scope of public relations, which should be engaged in economic theory.
The first stones in the foundation of the new branch of public knowledge laid the mercantlers. Mercaltists - from the Italian Mercante - a merchant, a merchant - supporters of strong power, advocated state trade support (especially exports). The condition for the growth of the wealth of the nation was considered not only the benefit of foreign trade relations with other countries, but also the development of its own industry, handicraft and manufactory production, shipping, processing of free lands, the involvement of the population into a productive work. Mercalistists argued that the main indicator of the country's wealth is the amount of gold. In this regard, they called on encouraging exports and restrain the imports, maintain an active trade balance (that is, spend less than earning). Mercantilists emphasized the exceptional role of the state in the economy, as the main institute, capable of managing all economic processes.
The next step in the development of economic thought was the classic school. The beginning of its formation put William Petit. He believed that the state plays a major role in regulating economic processes. All his actions should be aimed at an increase in the welfare of citizens of the country, since what they are richer, the silence of taxes with them can be collected.
As you know, the twin priest of the classical school is called Adam Smith. The fact is that it was he who developed and presented the economic picture of society as a system, and not as separate theses. In his famous work, "Research on the nature and causes of the wealth of peoples" Smith argued that the economy is not controlled from the Unified Center, it does not obey the overall plan, however, it functions on a certain rules. In accordance with the classical approach, the state should:
1. Ensure the military security of the country, people and their property;
2. Ensure justice;
3. Create and maintain public institutions.
In its description of the market economy system, Adam Smith argued that it was the leader of an entrepreneur to achieve his private interests, the main driving force of economic development, increasing ultimately welfare, both his own and society as a whole. This is achieved as Smith wrote, through the "invisible hand" of market laws. The desire for personal gain leads to the overall benefit, development and progress. Everyone individually takes care of itself, and wins society. Smith showed the strength and significance of personal interest as the inner springs of competition and the economic mechanism. Thus, representatives of the classical school did not see the large importance of the state in regulating economic processes, as it was believed that the market itself was able to regulate themselves through competition.
In the 30th year of the last century, after the deepest recession of the US economy, John Keynes in his book "The general theory of employment, percentage and money" put forward his theory in which he denied, the views of the classics for the role of the state. The concept put forward and defended by Keynes provides for the active intervention of the state in economic life. He did not believe in a self-regulating market mechanism and believed that to ensure normal growth and equilibrium, it is necessary to intervene in the process of economic development from the outside. But Keynesian state regulation was aimed at preserving a market economy (competition and free pricing), that is, did not break with the classical tradition.
In the mid-70s. And this theory was insolvent, the reason was the excessive state intervention in the economy. Now the new concept was required, which, while maintaining the characteristic nature of the market economy, helped to find the state "economic" mechanism of its intervention, and not "administrative". It was this task that the monetarist concept was fully known today, which Milton Friedmen developed. His theory, not denying the need for state intervention in the economy, reduced this intervention to the "indirect" - through the regulation of the monetary sphere. Friedmen, continuing the thought of mercantilists, believed that the most powerful factor affecting economic activity is the change in the cash supply. There is a direct connection between the amount of money and price level, prices are determined by the number of money in circulation, and the purchasing power of money is due to the price level. Money mass increases - prices are growing, and on the contrary, the money mass is reduced - prices are reduced, i.e. In other other conditions, commodity prices are changed in proportion to the number of money.
The most deeply need for state regulation of the market economy outlined Marx in its work on the capitalist production method. Marxism reasonably and consistently leads to the conclusion about the limited capitalist method of production in its pure form and the need to replace it with another more progressive system with a priority of a social aspect. The main disadvantage of the Marxist theory from the position of modern domestic political economy is considered to be the conclusion about the need for the revolutionary way of changing the method of reproduction and socio-economic system.
The attitude to state regulation of the economy at different stages of its formation was different: some scientists believed that only the state was able to ensure the stability and prosperity of the economy, some occupied the opposite point of view, believing that the market itself was able to regulate himself. In the total mass of modern economic teachings, the conviction of the need for state intervention in the action of a market mechanism is dominant. For the most part, economic schools differ only in the opinion of the methods and sizes of such an intervention.
The society is arranged in such a way that coercion to a certain extent is a condition of freedom. The market free from any state intervention can only be theoretical abstraction. The economic reality is that the state acts as an active participant in market relations. Already during the period of free competition, a significant part of the productive forces will develop the framework of classical private property, and the state was forced to take on the content of large economic structures: railways, mail, telegraph, etc. In terms of monopolistic competition, when production began to be characterized by great complexity, capital- and energy intensity, the monopolies themselves were interested in strengthening the regulatory role of the state, in constant support from its part in the domestic and foreign markets. The current effort of interstate integration leads to the fact that the general economic processes step by national borders, form new socio-economic tasks associated with defense, science, ecology, reproduction of labor.
economic provisions that we can rely on long-term socio-economic development. Therefore, the conduct of scientific research and the development of a comprehensive system of state regulation of the Russian economy as a fundamental, strategic basis for the development of society in the context of the transition to market relations is an important, extremely relevant scientific and practical ...
The economic strategy of the state, but also coordinates the efforts of ministries and departments, relying on the laws of the Russian Federation, decrees and orders of the President of the Russian Federation, the decree of the Government of the Russian Federation. State regulation of the economy is carried out through administrative and economic methods. Administrative methods involve the creation of a legal framework, economic legislation regulating ...
A strictly defined purpose and usually form extrabudgetary trust funds accumulated or not accumulated in the budget. Tax Budget State 1.3 The concept and types of tax policies Tax policy reflects the type, degree and purpose of state intervention (regulation) into the economy and varies depending on the situation in it. It is a system of events ...
And impact. This is justified. It has been proven that the full neglect of the regulatory role of the state in the management of the economy is an idea, alien to modern economic conditions. 1.2. Objectives and forms of state regulation. As the French entrepreneurs noticed, who arrived in Moscow in the fall of I991 in the invitation of the Scientific and Industrial Union of the USSR, "the conviction that the main sign of the market ...
Schools of state regulation of the economy
The role of state regulation of the economy was studied and analyzed by various schools since the XVIII century. The mains are such theoretical schools as: mercantilism, classics of non-interference theory in the economy, Keynesian, representatives of the neoclassical theory of monetarists, Neokeinsian. Representatives of these schools interpreted the role of the state in different ways in the formation and development of economic relations.
In world practice, there were three main approaches to the question of the role of the state in the regulation of the economy: the first, based on the concept of non-interference of the state into economic processes, the second, limits the role of the state in the economy management, while the degree of state intervention in the economy depends on the level of its development and specific economic conditions; The third approach involves the active intervention of the state in the development and implementation of economic policies.
Mercantilism
The basis of the economic school in the period of the late Middle Ages was the school of mercantilism. Mantilism is the teaching of French economists of the XVIII century, the essence of which was that the state should play an active role in the country's economic life in order to promote the enrichment of the country and the king. Supporters of mercantilism (T. Meng, A. Monkeyen) proclaimed the need for an active state intervention in the economy in order to replenish the state treasury. Given the specifics of economic development at that time (the main indicator of the country's wealth is the amount of gold) Mercalists called on to encourage exports and restrain imports.
Classical theory of non-interference in the economy
In the work of A. Smith, "Research on the nature and causes of the wealth of peoples" was argued that "the free game of market forces (the principle of" invisible hand ") creates a harmonious device." According to the classical approach, the state should ensure the safety of human life and solve disputes, in other words, Doing the fact that an individual is either not able to fulfill independently or makes it inefficiently. In its description of the market economy system, A. Smith proved that it was the leader of an entrepreneur to satisfy his private interests is the main driving force of economic development, increasing the ultimate well-being, both its own and society as a whole. The essence of this theory was that the main economic freedoms should be guaranteed for all business entities, in particular: freedom to choose activities, freedom of competition and freedom of trade.
Keynesian concept
Gained widespread in the 30s xx century. After a deep decline in the US economic development. J. Keynes put forward the theory in which refuted the views of the classics for the role of the state. The theory of J. Keynes can be called "crisis" because he considered the economy in a state of depression. According to his theory, the state should actively intervene in the economy due to the lack of the free market of mechanisms that would truly ensure the exit of the economy from the crisis. At the same time, J. Keynes believed that the state should affect the market in order to increase demand, as the cause of capitalist crises - overproduction of goods. He offered several tools: flexible monetary policy, active budget and financial policy and direct creation by the state of workplaces. The state regulation model proposed by J. Keynes made it possible to weaken cyclic oscillations during the two post-war decades. However, from about the beginning of the 70s, the discrepancy between the possibilities of state regulation and objective economic conditions. The Keynesian model could only be stable only in the conditions of high growth rates. High growth rates of national income created the possibility of redistribution without prejudice to the accumulated capital. However, in the 70s, the reproduction conditions deteriorated sharply. The Keynesian way out of the crisis only spinned the inflation spiral. Under the influence of this crisis, a cardinal restructuring of the state regulation system occurred and a new, neoconservative model of regulation.
Neoclassical theory of monetarism
The theoretical basis of the neoconservative model was the concept of the neoclassical direction of economic thought (I. Fisher, M. Friedmen). The transformation of the state regulation model was to refuse to impact reproduction through demand and use instead of indirect measures of impact on the proposal. Supporters of the theory of the economy of proposals consider it necessary to recreate the classic accumulation mechanism and revive freedom of private entrepreneurship. Economic growth is considered as a function of capital accumulation, which is carried out from two sources: at the expense of own funds, that is, the capitalization of part of income, due to borrowed funds (loans). According to this theory, the state should provide conditions for the process of accumulating capital and improving production productivity. The main obstacles on this path are high taxes and inflation. High taxes limit investment growth, and inflation increases costs a loan and thus makes it difficult to use borrowed funds for accumulation. Therefore, supporters of non-interference in the economy proposed the implementation of anti-inflation measures (based on the recommendations of monetarists) and the provision of tax benefits to entrepreneurs. According to neoclassical theory, the state can only indirectly affect the economy. The main role in the implementation of the country's economic development is carried out by market forces. The basis of the monetarist approach in the framework of the neoclassical theory is the postulate of a tough connection of money supply and the speed of their turnover with production volumes and price level. Analyzing economic ties, supporters of a monetary approach believe that the rate of money circulation is stable. This statement directly contradicts Keynesian postulates on the direct proportional dependence of the speed of money from the interest rate and inversely proportional to the money supply.
Neokeinsians - argue that cyclic oscillations and inflation cause changes in total expenses and money supply (J. Robinson, R. Kharrod, B. Domar). Neokeinsians advocate an active stabilization policy with the predominant use of budget and tax regulatory tools.
Such a number of theories on the role of the state in the economy is primarily due to the lack of holistic conceptual ideas about the phenomena arising in economic life, the predominance of an empirical approach to the development of scientific generalizations on economic processes. Thus, it turned out to be both Keynesian approaches to overcome the stagnation by enhancing state interventions and monetarist recommendations on the restriction of the state's intervention in economic processes only by the methods of monetary policy. The absence of a holistic theory does not allow neoquinsians to reasonably approach the assessment of the role and forecasting of phenomena, actually occur. The modern theory of state regulation of the economy is based on a rational combination of basic approaches, which makes it possible to send public efforts to achieve certain economic development and social security goals.
The concept of state regulation of the economy, its main goal and task
State regulation of the economy is the intervention of state authorities through various methods and tools for the development of basic economic processes in order to ensure positive socio-economic results.
The objective necessity of such an intervention is the inability of the market characterized by the elevation of development, to ensure the implementation of the state economic policy, which provides, firstly, creating a solid material basis for the growth of the well-being of the people; secondly, providing public reproduction in the necessary proportions and scales; Thirdly, maintaining the balance of socio-economic interests of various segments of the population and, fourth, the preservation of the integrity of the country's territorial space. The main goal of state regulation of the economy is to ensure appropriate conditions for sustainable economic development and on this basis an increase in the level and quality of life of the population. According to this purpose, it is possible to formulate the main tasks of state regulation of the economy: ensuring planned economic growth and development; achieve the productive employment of labor resources; creation of transparent and fair redistribution of income of the population; achieve economic efficiency in the country; Ensuring the country's foreign trade balance.
The subject of state regulation is a person (citizen), which is specified in government bodies, namely: to the President, Verkhovna Rada, the Council of Ministers, representatives of local administrations (in Ukraine - regional government administrations).
The objects of state regulation of the economy include:
Economic subsystems: economics of regions and sectors of the economy;
Economic sectors: social production; monetary; Fiscount and financial; Investment and innovative; foreign economic and other;
Real sector of the economy;
Pricing process and inflation;
The activities of enterprises and organizations, as well as entrepreneurial activities.
State regulation of the economy E is one of the functions of economic management. The main functions of economic management are both strategic economic development planning (development of a national economy development strategy); programming (development of national economic development programs); organization of national economy management; Motivation of state authorities; Control and regulation of economic development.
Despite the fact that government regulation of the economy is one of the main functions of public administration, in practice, an integrated approach to the implementation of all functions is used to ensure national economic development, as they are interconnected.