The purpose of this article is to examine the evolutionary mechanisms of the development of concepts and the main directions of state regulation, as well as the current regulatory mechanisms. In the evolutionary chain of state regulation...
moreThe purpose of this article is to examine the evolutionary mechanisms of the development of concepts and the main directions of state regulation, as well as the current regulatory mechanisms.
In the evolutionary chain of state regulation of the economy mainly the following individuals or ideologies have been highlighted: Adam Smith, a representative of the classical school of economics, John Maynard Keynes, who made significant strides in state regulation in the early 20th century, the neoliberals, who emphasized the need for continued state support in a competitive environment, the Ordoliberals, who viewed free market competition not as a natural process but as an institution, and the institutionalists, from the point of view of one of its founders, T. Weblen.
Through the analysis of Western theories and world experience, we can also identify a standard package that is both organized into national models and organized in public forms and methods of state regulation: directly through state ownership, indirectly through various economic policy measures.
An indirect method of regulation is carried out solely through economic means, while direct intervention is carried out by the administration and economic influence.
Direct economic regulation includes various forms of irrevocable targeted financing of territories, enterprises, industries, as well as direct subventions and subsidies, including various types of subsidies, surcharges from budgetary and extrabudgetary funds, as well as preferential loans.
The methods of economic (indirect) regulation include government policy in monetary, currency, foreign economic (including customs) relations, tax systems, depreciable property and other areas.
At the node of administrative and direct economic methods of regulation are such forms of state regulation as the program-target approach, project financing and lending.
It is necessary for the state to implement an appropriate economic policy in order to create normal conditions for entrepreneurial activity, stabilization, and economic rebound, which is a combination of fiscal, scientific and technical, investment, pricing, depreciation, monetary, and other policies, in the complex implementation of which both economic and administrative resources are utilized.
It should be noted that the theoretical paradigms and concepts of state regulation of the market economy aim to establish constructive relations between the state and civil society (state and private entrepreneurship), to assure society's priority, the rights and the unity of economic and social efficiency of the development of society at different periods in history.
The article concludes that in a dynamically developing economy, the scientific society and various management units should constantly be focusing on issues of state regulation of the economy in order to prevent crisis situations from occurring.
