State regulation of the economy is a necessary system of control measures, legislative and executive measures, which aim to stabilize the economy and its adaptation to changing conditions.
State performs regulatory functions through a variety of methods and forms of impact on the economy.There are methods such as the regulation of economic and administrative.
In developed countries, dominated by economic sanctions, among which stands out the tax regulation of the economy.Fiscal policy is the oldest instrument of government intervention in a market economy.Changes in the level of taxation can adjust the position of the most important of the economy, such as aggregate demand, inflation, economic growth, and others.
market as a mechanism of control is an effective method for harmonizing the actions of economic entities.It leads to responsibility for quality business decisions and outcomes of economic activity.Prices in the market conditions are formed under the influence of supply and demand factors.They influence the decision-making in the allocation of work, carrying out the investment policy, etc.
However, unpredictable and unregulated market fails to ensure achievement of the planned long-term objectives and ensure the implementation of priority social and economic problems.State regulation of the economy in this context is a necessary factor in a balanced market situation.It is not coordinated market economy can lead to unnecessary spending on the issue of unclaimed goods, bankruptcies as a result of changes in market conditions and solvency of counterparties.
In fact, the laws of the market determine the prospects of development of society spontaneously.Therein lies their limitations.Therefore, government regulation of the economy should be combined with the operation of the market mechanism.
State intervenes in the economy, even in the most developed countries.It is justified and necessary measure.It is noteworthy that the higher the level of production of screens, the more significant division of labor between individual enterprises and industries, the more competition increases, the more popular it becomes part of the economy of the state.
chief ideologist of the theory of economic regulation is George. Keynes.According to the theory of British economist the state must intervene in the economy, since the free market does not provide mechanisms that would ensure the stability of the economy.
State regulation of the economy is the impact of the federal government and regional scale in the elements of the market (supply, demand), the quality of goods, the conditions of implementation, competition, market infrastructure, etc.
today in different countries there are different methods of regulating the economy: price controls, taxes, long-term regulations, expert assessments, limits and other limits.Each state chooses their own methods of influence, focusing on their performance in specific geographical and historical conditions.They allow you to influence the market and regulate the relationship between buyers and sellers.
methods are constantly being updated and improved under the influence of the new challenges of the economy.Flexible use of state intervention in the economy is provided by a combination of market principles to the planned methods.
Countercyclical regulation of the economy - the direction of the state policy in the economic sphere, which is aimed at easing of regular cycles inherent in the development of the economy.Based on the application of this regulation stabilizers (taxes, grants, subsidies, etc.).
