Functions of the state in a market economy

in market conditions, government regulation of economic activity of the economic situation is the controlling measures, legislative, executive measures, which are carried out by state competent authorities and public organizations for the purpose of stabilization, optimization and adaptation of the existing economic system to changing market conditions.

functions of the state in a market economy mainly aimed at regulating the market situation in a way that preserved optimally productive balance in the economic and social environment.In addition, the functions of government in a market economy, the scope of cover such as the promotion of economic growth, employment regulation, promoting improvements in economic structures of industries and regions, support for exports.

For the countries of the former socialist state functions in a market economy, most clearly manifested in the transition from a planned economy to a market economy, which should be based on a new form of ownership - private.

subject of economic policy are the expression, the vehicle, and at the same time implementing economic interests.The objects of state regulation of the economy are the industry sphere, regions, situations, conditions and effects of social and economic life, in which there are difficulties and problems that can not be resolved automatically and requires intervention.

functions of the state in a market economy to regulate its condition manifested by acting on objects such as the economic cycle, employment, conditions of capital accumulation, balance of payments, the conditions of competition, the structure of the economy (sectoral, regional, sectoral), social security, prices, monetary circulationand retraining, scientific research, environment, social relations, foreign economic relations, and others.

infrastructure of a market economy - a set of industries and activities of production and non-production nature that ensure the full functioning of the market.It includes banks, stock exchanges, insurance companies, intermediaries, consulting, marketing, auditing firms, transport, means of business communication, information systems, personnel training system, etc.All these institutions facilitate the implementation of their activities barter, increase the efficiency of the individual elements of the economy.In Russia, most of these elements are in the process of improving, and some - still in its infancy.

State affects the market economy in order to maintain social and economic stability, to strengthen the existing system and adapt it to any changes in the country and taking into account the international situation.

During the crisis, the government aims to stimulate buying activity and demand for goods, to encourage investment and to monitor employment.Private capital in connection with the available financial incentives.In a situation of long-term economic growth of the contrary should slow down the growth of demand, production and investment, in order to prevent overproduction and over-accumulation of capital, which could lead to a crisis of overproduction in the future.

state regulates the economy with the help of different means: administrative (non-financial incentives and based on the prohibitions and enforcement) and economic.The latter include a means of monetary policy and fiscal policy.