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State regulation of the economy and its place in economic schools. State regulation of the economy and its place in various economic schools. The decisive role belongs to price regulation, which school

2 Economic schools on state regulation of the economy

Government regulation of the economy has a long history and dates back to the end of the Middle Ages. Attitudes towards government intervention in the economy at different stages of its development were different.

The merit of the first representatives of economic schools is not that they found an exhaustive answer to the question posed, but that they identified it. To pose a problem means to outline the direction in which the search should be conducted, groping, albeit in a somewhat general, vague form, the sphere of social relations that economic theory should deal with.

The first stones in the foundation of a new branch of social knowledge were laid by the mercantilists. Mercantilists - from the Italian mercante - merchant, trader - supporters of strong power, advocated state support for trade (especially exports). The condition for the growth of the nation’s wealth was considered not only the benefit of foreign trade relations with other countries, but also the development of its own industry, handicraft and manufacturing production, shipping, cultivation of free land, and the involvement of the population in productive labor.

Mercantilists argued that the main indicator of a country's wealth is the amount of gold. In this regard, they called for encouraging exports and curbing imports, maintaining a trade surplus (that is, spending less than earning). Mercantilists emphasized the exclusive role of the state in the economy, as the main institution capable of managing all economic processes.

The next stage in the development of economic thought was the classical school. Its formation was started by William Petit. He believed that the state plays a major role in regulating economic processes. All his actions should be aimed at increasing the well-being of the country's citizens, since the richer they are, the more taxes can be collected from them.

As you know, Adam Smith is called the founder of the classical school. The fact is that it was he who developed and presented the economic picture of society as a system, and not as individual theses. In his famous work “An Inquiry into the Nature and Causes of the Wealth of Nations,” Smith argued that the economy is not controlled from a single center and is not subject to a general plan, nevertheless, it functions according to certain rules. According to the classical approach, the state must:

1. Ensure the military security of the country, people and their property;

2. Provide justice;

3. Create and maintain public institutions. In his description of the market economy system, Adam Smith argued that it is the entrepreneur’s desire to achieve his private interests that is the main driving force, ultimately increasing the well-being of both himself 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 general benefit, production development and progress. Each individual takes care of himself, but society benefits. Smith showed the power and significance of personal interest as an internal spring of competition and an economic mechanism. Thus, representatives of the classical school did not see much importance for the state in regulating economic processes, since they believed that the market itself was capable of regulating itself through competition.

In the 30s of the last century, after the deepest recession in the US economy, John Keynes in his book “ General theory employment, interest and money” put forward his theory, in which he refuted the views of the classics on the role of the state. The concept put forward and defended by Keynes provides for active government intervention in economic life. He did not believe in a self-regulating market mechanism and believed that external intervention in the process of economic development was necessary to ensure normal growth and achieve equilibrium. But Keynesian government regulation was aimed at preserving the market economy (competition and free pricing), that is, it did not break with the classical tradition.

In the mid-70s. and this theory turned out to be untenable, the reason was excessive government intervention in the economy. Now a new concept was required, which, while maintaining the regulated nature of a market economy, would help the state find an “economic” mechanism for its intervention, rather than an “administrative” one. It was this task that was accomplished by the monetarist concept, widely known today, developed by Milton Friedman. His theory, without denying the need for state intervention in the economy, reduced this intervention to “indirect” - through regulation of the monetary sphere. Friedman, continuing the thoughts of the mercantilists, believed that the most powerful factor influencing economic activity is a change in the money supply. There is a direct connection between the amount of money and the price level; prices are determined by the amount of money in circulation, and the purchasing power of money is determined by the price level. The money supply increases - prices rise, and vice versa, the money supply decreases - prices decrease, i.e. other things being equal, commodity prices change in proportion to the quantity of money.

Marx outlined the need for state regulation of a market economy most deeply in his works on the capitalist mode of production. Marxism reasonably and consistently leads to the conclusion about the limitations of the capitalist mode of production in its pure form and the need to replace it with another more progressive system with the priority of the social aspect. The main drawback of Marxist theory from the position of modern domestic political economy is considered to be precisely the conclusion about the need for a revolutionary path to change the method of reproduction and the socio-economic system.

Attitudes towards state regulation of the economy at different stages of its development were different: some scientists believed that only the state was able to ensure stability and prosperity of the economy, some took the opposite point of view, believing that the market itself was able to regulate itself. IN total mass Modern economic teachings are dominated by the belief in the need for government intervention in the operation of the market mechanism. For the most part, schools of economics disagree only on the methods and extent of such intervention.

Society is structured in such a way that coercion is, to a certain extent, a condition of freedom. A market free from any kind of government intervention can only be a theoretical abstraction. The economic reality is that the state is an active participant in market relations. Already in the period of free competition, a significant part of the productive forces outgrew the framework of classical private property, and the state was forced to take upon itself the maintenance of large economic structures: railways, post office, telegraph, etc. In conditions of monopolistic competition, when production began to be characterized by great complexity, capital and energy intensity, the monopolies themselves turned out to be interested in strengthening the regulatory role of the state and in its constant support in the domestic and foreign markets. Today's efforts at interstate integration lead to the fact that common economic processes transcend national borders and form new socio-economic tasks related to defense, science, ecology, and reproduction of the labor force.

economic conditions, on which we can rely in long-term socio-economic development. Therefore, conducting scientific research and developing 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, and resolutions 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 formed by off-budget trust funds, accumulated or not accumulated in the budget. tax state budget 1.3 Concept and types of tax policy Tax policy reflects the type, degree and purpose of government intervention (regulation) in the economy and changes depending on the situation in it. It is a system of events...

And impact. This is justified. It has been proven that complete neglect of the regulatory role of the state in economic management is an idea alien to modern economic conditions. 1.2. Goals and forms of government regulation. As French entrepreneurs who arrived in Moscow in the fall of 1991 at the invitation of the Scientific-Industrial Union of the USSR noted, “the conviction that the main feature of a market...

In the western economic science There are several areas that characterize the role of the state in the economy. There are similarities and differences between them. What they have in common is that they assume the importance of a market economy. The differences lie in different points of view on the economic role of the state. Keynesians, institutionalists, and neoliberals adhere to the concept of a mixed economy. Monetarists, supporters of the theory of rational expectations and supply-side economics substantiate the thesis of state non-intervention in the economy or the minimization of such intervention.

Keynesianism

Since the times of Say and Ricardo, economists have argued that supply itself creates demand. All sellers are inevitably buyers. Say's Law declared that a market economy, by its nature, independently ensures the balance of supply and demand. Crises are impossible. There are no barriers to achieving full employment. Before Keynes, economists assumed that a theory of production and employment could be built on the basis of natural exchange. Money does not play any independent role in the economy.

Say's Law was criticized by K. Marx, but Western economic thought ignored it. K. Marx believed that the exchange of goods with the help of money creates serious problems. There is a gap between the acts of sale and purchase. No one is obligated to buy, even if he has sold something. Money is withdrawn from circulation, and further exchange of goods is suspended. J. Keynes significantly changed the course of Western economic thought. He concluded that the market economy is inherently unstable.

It is argued that for J.M. For Keynes, money is nothing (and for supporters of monetarism, money is everything). Meanwhile, his main work is called “The General Theory of Employment, Interest and Money.” Keynes's assessment of the instability of the market economy could not have appeared without recognizing the role of money.

For Keynes, the problem is not simply an imbalance between supply and demand. Society suffers from a lack of aggregate demand: C + I, Where WITH- consumption, I- investments. At this point, the positions of J. Keynes and K. Marx coincide. The latter believed that the main problem for capitalism is the problem of implementation. But there are differences between them in explaining the reasons for the insufficiency of aggregate demand. K. Marx explains this by the specifics of capitalist relations, the nature of distribution, as a result of which consumption grows, but grows more slowly than production. The basic proportions of production are violated.

Keynes discovered a basic psychological law: “People tend, as a rule, to increase their consumption as their income increases, but not to the extent that their income increases” 1 .

A higher absolute level of income leads to a widening gap between income and consumption. The excess of income over consumption is saving:

Saving = Income - Consumption.

The gap between income and consumption must be filled by new investment. With equal savings and investment, full employment and a balanced economy are achieved. The factors that govern savings and investment are different. Households and financial institutions save, and firms make investment decisions. This is where savings and investments can become decoupled. If saving exceeds investment, then aggregate demand decreases. The situation is also getting worse because there is a tendency towards a decrease in the share of consumption in national income. Regulation of investment and consumption volumes is impossible without government intervention.

Marxists raised the question of the economic role of the state earlier than J.M. Keynes. But they had different approaches to this issue. F. Engels in “Anti-Dühring” pointed to the outgrowing by the productive forces of capitalist property in all its forms (private, collective). failure to individual entrepreneurs, joint stock companies to cope with the productive forces forces society to take them into its own hands.

J.M. Keynes did not believe that capitalist property had become obsolete. There is no reason to believe that the existing system, he wrote, makes poor use of the factors of production that it uses at all. Of course, mistakes in foresight happen, but they cannot be avoided even with centralized decision-making. “The result of filling in the gaps of classical theory should not be the elimination of the “Manchester system”

Keynes J.M. General theory of employment, interest and money. P. 157.

we”, but to clarify the conditions required by the free play of economic forces so that it can lead to the realization of all potential possibilities of production.”

Keynes assumed that the state would take on increasing responsibility for the direct organization of investment. It will also exert its guiding influence on the propensity to consume. Apart from the need for centralized control to achieve consistency between the propensity to consume and the incentive to invest, there is no basis for socializing the economy. Keynes opposed a system of state socialism that would cover most of the economic life of society. Unlike Keynes, Marxists absolutized the tendency towards nationalization, which over time led the economies of Eastern European countries to bureaucratization and deprived it of any incentives for scientific and technological progress.

Keynesianism ushered in changes in economic policy. Traditionally, it was believed that tax rates should be the same at all times, good and bad. Keynes considered taxes an important method of regulating the economy, and therefore it was necessary to change tax rates depending on the economic situation.

Before Keynes, economists believed that the state should act like a family: expenses should be equal to income.

Accordingly, the state budget must be balanced annually. Keynesians substantiated the principle of balancing the budget throughout the cycle. During a recession, the budget runs a deficit; during a boom, it runs with an excess of revenue over expenses. But during the cycle the budget must be balanced. In the late 1980s, the idea of balancing the budget throughout the cycle was modified. Developed countries have begun to implement the so-called consolidation of fiscal relations. This policy included limiting the size of the budget deficit, the volume of public debt, and balancing budgets on an annual basis. Some countries sought to create surplus budgets.

J. Keynes proposed using monetary policy to regulate the economy primarily through changes in the interest rate. True, he wrote that he was somewhat skeptical about the possibility of success of a purely monetary policy aimed at regulating the interest rate. During the Great Depression of 1929-1933. monetary policy was insufficient to revive the economy. And it is right. But Keynes cannot be credited with underestimating monetary policy in general. Modern Keynesians, unlike monetarists, recognize the importance of both fiscal and monetary policies.

J. Keynes and his followers created a realistic theory of the cycle. Marxism explains cyclical development by the overaccumulation of capital, in which the increase in capital is not accompanied by a corresponding increase in the mass of profit. The renewal of fixed capital, K. Marx argued, is the material basis of the cycle.

J. Keynes believed that the cycle is associated with a change in the marginal efficiency of capital. The main explanation for the crisis must be sought in the sudden drop in the marginal efficiency of capital (the rate of return on the marginal cost of capital). The time factor in the economic cycle (i.e. its duration) is determined by the reasons that determine the restoration of the marginal efficiency of capital. These reasons include the lifespan of non-expendable property and the cost of maintaining excess inventory. The period of time that must pass before the shortage of capital due to its use, deterioration and material obsolescence becomes quite obvious and causes an increase in its marginal efficiency may be a fairly stable function of the average service life of capital in a given period.

Marxism considered the cycle an attribute of capitalist relations of production. However comparative analysis This phenomenon by K. Marx and J. Keynes shows that the cycle is determined not so much by capitalist property as by the need to renew durable property. The economy cannot develop at the same pace. It is necessary to renew worn-out equipment, buildings and structures, the growth rate of production is falling, its volume is decreasing absolutely. After the renewal of durable property, the movement of production resumes again. Thus, Keynesianism and Marxism explain the cycle by the movement of investment and changes in the rate of profit.

Keynes J.M. General theory of employment, interest and money. P. 454.

Economic policy system

Conditions of occurrence: primary accumulation of capital under the auspices of the state (16-17 centuries), active colonial policy.

Protectionism – protection of domestic producers (manufacturers) and trade.

The field of competition is foreign trade.

Physiocrats on GR

17-18 Century - the state should not interfere in economic management.

The first economic doctrine requires freedom, trade, above all. Land is the only source and factor of production and wealth. Regulation in favor of agriculture.

Developed a theory money circulation and trade.

They believed that a certain natural order prevails in the life of society, which must be determined and not violated. The main concern of the state is the protection of natural law. Based on private property.

Physiocrats argued that economic laws are as natural as the laws of nature, they do not need to be invented, they must be known and obeyed. In contrast to the mercantilists, the physiocrats rejected state regulation of economic life. They put forward the slogan (Let him go as he goes). The role of the state, the physiocrats believed, boils down to protecting freedom and property.

Physiocrats rejected the need for state regulation of foreign and domestic trade and called on the government to promote the development of agriculture. They advocated a free economic mechanism on the principles of complete freedom of pricing in the country and the export of agricultural products abroad. The principle of freedom of economic activity becomes fundamental among the physiocrats. They assigned to the state such functions as maintaining the natural order, organizing public enterprises, and the fiscal function of collecting taxes (the main function of collecting taxes).

Main representatives: Francois Quesnay; A. Turgot

Francois Quesnay - Three classes participate in economic life:

Productive (those who cultivate the land, tenant farmers)

Land owning class (king, nobility, clergy)

Unproductive "sterile" (those associated with industrial production: artisans, entrepreneurs, wage workers, traders)

Quesnay showed how commodity and money flows between classes move in the national economy, as a result of which farmers produce food for all classes, raw materials for industry, and seeds for the next year. They transfer the resulting clean product to the land owners in the form of rent. Quesnay's theoretical concept was the basis of the political demands of the physiocrats. They believed that since the entire net income was delivered to the owner class, it was necessary to introduce this income and collect it from the land of the owners.

The theory of physiocrats received further development in creativity and activity A. Turgot – he tried to implement tax reforms and reduce the cost of maintaining the courtyard. Like all physiocrats, he advocated freedom of trade and freedom of pricing.

17-18 centuries - the state should not interfere in economic management.

First economic doctrine

Land is the only source and factor of production and wealth, providing a surplus of gross income over production costs.

They contrasted agricultural trade and manufacturing industry.

The first macroeconomic diagram of product flow. Regulation in favor of agriculture.

Developed a theory of money circulation and trade.

A certain natural order prevails in the life of society, which must be determined and not violated.

Classical school of political economy about GR

The classical school of political economy revised the theories of its predecessors, in particular the mercantilists - the ideologists of merchant capital.

For restrictions on state intervention in economic life, “A. Smith and D. Ricardo substantiated the slogan of “economic freedom”

Main representatives: A. Smith, D. Ricardo

The basic principles of the classical school, based on the principles of non-interference of the state in economic processes, unlimited freedom of competition for entrepreneurs.

In the development of classical political economy, with a certain convention, four stages can be distinguished.

The first stage covers the period from the end of the 17th century. until the beginning of the second half of the 18th century. This is the stage of expanding the sphere of market relations, reasoned refutations of the ideas of mercantilism and its complete debunking. The main representatives of the beginning of this stage, W. Petty and P. Boisguillebert, were the first in the history of economic thought to put forward the labor theory of value.

The first stage of classical political economy was completed by the so-called school of physiocrats, which became widespread in France in the middle and early second half of the 18th century. The leading authors of this school, F. Quesnay and A. Turgot, in their search for a source of pure product (national income), along with labor, attached decisive importance to land.

The second stage of development of classical political economy covers the period of the last third of the 18th century. and is associated with the name and works of Adam Smith. His “economic man” and “invisible hand” convinced more than one generation of economists in the natural order and inevitability of the spontaneous action of objective economic laws, regardless of the will and consciousness of people.

The third stage occurs in the first half of the 19th century, when in a number of developed countries The industrial revolution ended. During this period, A. Smith's followers subjected to rethinking and in-depth processing of Smith's basic ideas and concepts, enriching the school with fundamentally new and significant theoretical positions. Among the representatives of this stage, one should highlight the French J.B. Say and F. Bastiat, the English D. Ricardo, T. Malthus and N. Senior and others.

The fourth stage covers the second half of the 19th century, when J. S. Mill and K. Marx summarized the best achievements of the school. These authors, being strictly committed to the principle of efficient pricing under conditions of competition, sympathized with the working class and were converted to socialism. Marx emphasized the increasing exploitation of labor by capital, which, intensifying the class struggle, should, in his opinion, lead to the dictatorship of the proletariat, the withering away of the state and the economy of a classless society. Let us highlight the characteristic features of the classical school:

Rejection of protectionism in the economic policy of the state, upholding the principle of economic liberalism.

Predominant analysis of problems in the sphere of production in isolation from the sphere of circulation.

Development and application of progressive methodological research techniques, including cause-and-effect, deductive and inductive methods, logical abstraction.

Based on cause-and-effect analysis, calculations of average and total values of economic indicators, the classics tried to identify the mechanism for the formation of the cost of goods and prices on the market in connection with production costs, or the amount of labor expended.

Money was recognized as a commodity that spontaneously emerged in the commodity world, which cannot be “cancelled” by any agreements between people.

According to A. Smith, the state must fulfill three responsibilities:

Protect society from violence and invasions of other independent societies;

To protect, as far as possible, every member of the community from injustice and oppression on the part of other members, or to establish the good administration of justice;

To establish and maintain certain public works and institutions, the establishment and maintenance of which cannot be in the interest of individuals or small groups, and the costs of which cannot be met by private individuals.

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MINISTRY OF EDUCATION AND SCIENCE OF THE RUSSIAN

FEDERATION FEDERAL AGENCY FOR EDUCATION

State educational institution higher professional education

"RUSSIAN STATE TRADE AND ECONOMICS UNIVERSITY"

Yuzhno-Sakhalin Institute (branch)

Department of Management and Commerce

COURSE WORK

in the discipline: "Industry Economics"

on the topic “State regulation of the economy and its place in various economic schools”

Yuzhno-Sakhalinsk 2011

Introduction

Chapter 1. The essence of state regulation of the economy

2.2 Main directions of economic activity of the state

2.3 Methods of state regulation of the economy

Conclusion

List of used literature

Applications

Introduction

State regulation of the economy is a system of state measures through which it can influence the socio-economic development of society. The need to include the state in regulating the economy is caused by many objective reasons related to imperfections, “failures” of the market, and contradictions that arise in it. The market, by its nature, cannot achieve a level of self-regulation that would ensure full employment of the population, the development of healthcare, universal education, the construction of municipal housing, environmental protection and much more.

Today, the relevance of the topic lies in the need to develop our own market and expand the economy through government regulation. Thus, it is necessary to clearly define the role of the state in the economic system.

In the Russian economy, great emphasis is placed on central planning. Our economy is predominantly a market system. At the same time, the economic functions of the state play a very significant role in it. Therefore, there is a need for state participation in solving problems generated by the market. The reasons for this need include 3, p. 22-25:

The need to compensate for, eliminate, or avoid negative market externalities.

Each country has its own highest national-state interests, the guarantor and defender of which is the state, that is, there is a set of problems that only the state and no one else can solve.

The need for state regulation is determined by the tasks of solving social problems influencing economic development. Thus, the state establishes minimum dimensions wages, working hours, guaranteed leave, the cost of living. It regulates the relationship between labor and capital, determines the directions of social spending, establishes unemployment benefits, and pays various types of pensions and other benefits.

Only the state can provide the economy with the necessary amount of money.

According to some economists, the state should play a huge role in choosing the further development of the economic system. State intervention is considered necessary, since the spontaneous beginnings of the market aim economic development, first of all, at making a profit for a specific enterprise or industry, and not at the development of the economy as a whole.

Thus, government participation in solving problems generated by the market (“market failures”) is absolutely necessary. At the same time, the state should not replace the market and can only act in a certain coordinate system. The effectiveness of a market economy as a system is the limit of government regulation.

The purpose of the work is to study the essence and methods of state regulation of the economy. To do this, you need to complete a number of tasks:

Analyze theoretical aspects government regulation;

Study the theories of economic schools of government regulation;

Consider the tools of state regulation of the economy.

Currently Russian government proceeds from the fact that his “super task” is related to financial stabilization and reducing inflation rates. The next important problem is creating incentives for the economic revival of investment activity. The problem of unemployment in the current period does not yet seem so dangerous, so it does not come to the fore in terms of the priority of goals. For various reasons, the government has not yet included achieving foreign economic balance and environmental protection among its priority goals 14.

Chapter 1. State regulation of the economy

1.1 Mechanism of state regulation of the economy

Economic regulation means purposeful processes that ensure the maintenance or change of economic phenomena and their connections. Regulation is one of the most important functions of the national economic management system at all its levels. Regulation is determined by the laws of economic development and is based on legislative framework, on the widespread use of a system of centralized financing and lending, on the relations of enterprises with the budget, on pricing, on the use of incentives and various economic sanctions 3, p. 31.

To understand the mechanism of GRE, it is advisable to characterize its levels, objects and subjects. There are three main types of economic regulation: state, market and corporate. Their optimal combination requires organic coordination of various levels of state economic regulation. If we take the levels of GRE vertically, then these will be: macro-, micro-, meso-level (average, intermediate) 3, p. 35:

1) macro level of the national economy, and at modern stage to a certain extent, the supranational level of interstate unions;

2) meso level - individual sectors of the economy (agribusiness, fuel and energy complex, military-industrial complex), industries and regions of the country. GRE at this level is integral part industrial policy of the state;

3) micro level - economic entities (enterprise, firm), producers and consumers, sellers and buyers.

For the normal functioning of the economy and maintaining social stability, the state must have the following basic objects in its field of vision: the economic cycle; capital accumulation; employment; money turnover; payment balance; prices; competitive and social relations; training and retraining of personnel; environment and ecology; foreign economic relations.

For example, the essence of government countercyclical policy is to stimulate demand for goods and services, capital investment and employment during crises and depressions; employment regulation is the maintenance of a normal relationship between demand and supply of labor from the point of view of a market economy; regulation of competitive relations is the antimonopoly activity of the state aimed at demonopolizing the economy, creating a competitive environment in product markets, supporting and developing entrepreneurship. The state of the balance of payments is an objective indicator of the economy. Of course, the listed objects are completely different and can cover different levels of GRE.

As for the GRE subjects, they are the ones who implement the state economic policy, are the main executors of the economic interests of society.

Subjects are supranational, national, central or federal, regional, municipal or communal (local) government bodies. The executors of the economic interests of society - the subjects of the State Economic Expedition - are the bodies of the three branches of government, built on a hierarchical principle, as well as the Central Bank.

State regulation in a market economy is the purposeful influence of the state on the micro- and macroeconomic processes of economic development in order to maintain its stability or change in the direction desired by society 2, p. 27-30.

Based on the essence, the goals of state regulation are determined. Economic science considers the main, highest goal of regulation and applied goals at the global level. In any country, the highest goal should be to achieve the maximum welfare of the entire society. But its implementation is possible through the achievement of applied goals, which include: economic growth; full employment; stability of the price level and stability of the national currency; external economic balance.

In the system of economic goals, ensuring economic growth is considered the leading specific task. Its solution is associated with an absolute and relative increase in GNP.

Ensuring economic growth is associated with another important goal - meeting the requirements of full employment. Its essence is to achieve the maximum possible and long-term stable use of the entire working population. This particular problem is solved by creating new jobs and other methods of combating unemployment.

Stability of the price level and national currency is a condition for economic stability. Therefore, achieving the goal in question is the most important guideline in the actions of the state.

Solving the three listed targets means achieving relative macroeconomic equilibrium within the national economy, and creates more favorable conditions for achieving external economic equilibrium 2, p. 44:.

The significance and consistency of goal setting in a particular country is determined by a variety of internal and external circumstances. In relation to the conditions of Russia, the sequence of achieving the considered goals may differ markedly from the sequence characteristic of Western countries. And in the very composition of the goals there is a certain specificity caused by the insufficient maturity of market relations.

Targets are implemented based on the use of a number of specific principles of state regulation of the economy. There will be much more of them than the economic goals themselves. We list them without classifying them according to a specific order or criteria 3, p. 36-37:

Regulation of the economy requires compliance with the principle “don’t interfere with the market”: follow the “rules of the game”;

Ensuring economic freedom and efficiency of business activities;

Development of a system of priorities in the implementation of assigned tasks;

Social orientation of economic regulation;

A combination of federal state, regional and municipal regulation;

Forecasting the demographic situation;

Taking into account the political situation and stability in society;

Economic feasibility, justification and boundaries (limits) of regulation, etc.

The implementation of these principles involves creating conditions for the production of everything more goods and services on a constantly changing technological basis, minimizing costs while using limited resources, strengthening positions in the global market, creating jobs for everyone who wants and can work. This, in turn, presupposes economic freedom and equality of all types of economic activity, producers and consumers of products, sellers and buyers in the market so that they have freedom of choice. It should be added here that any economy (both market and non-market) does not have innate immunity against such economic diseases as inflation and monopolization. It is clear that a market economy needs a constantly pursued state anti-inflation and anti-monopoly policy 3, p. 38:.

So, let’s summarize what has been said and formulate the essence of the GRE - it is a system of legislative, executive and supervisory measures that are carried out by authorized government agencies. TO public organizations, which are also involved in regulating the economy, include trade unions, unions of entrepreneurs and farmers, environmental councils, etc.

Ultimately, the mechanism for regulating the economy should be aimed at orienting macroeconomic development in the direction of any envisaged option along the path of deepening economic reforms and achieving more high level and quality of life. countercyclical policy government regulation

1.2 Views of economic schools on government regulation

Modern economics represents a synthesis of the market mechanism and elements of government regulation. The forms of activity and the volume of state activity in the economic sphere change with the development of society, in particular with the complication of economic relations. In this regard, attitudes towards government intervention in the market economy were different at different stages of its formation and development. This can be seen in various schools of economics.

Economic policy of the state during the period of initial accumulation of capital and the formation of market relations from the 15th century. until the middle of the 17th century. reflected the interests of commercial capital and industry (then they were united). Views on the need for state regulation for the development of trade and industry in the country were then developed by the economic school - mercantilism (French mercantilisme; Italian mercante - merchant, merchant). Mercantilism as an economic school developed in England, Italy and France. An outstanding representative of this school is A. Montchretien (French). For the first time he introduced the term “political economy”. His main work is “Treatise of Political Economy” (1615).

Mercantilists considered the main source of wealth to be money, or more precisely, trade, and therefore the accumulation of monetary wealth can be achieved with the help of state power, support for artisans and trade protectionism in the foreign market 6, p. 77-78.

In the middle of the 18th century. as a reaction to mercantilism in France, a new direction of economic thought arose - physiocratism (rp.philsis - nature + kratos - power, strength, domination). Founder Fr. Quesnay - “Economic Table” (1758). The physiocrats believed that the government's attention should be paid not to the development of trade and the accumulation of money, but to agriculture, where, in their opinion, the wealth of society is created. In practical conclusions, the physiocrats sought the implementation of economic policies by the state aimed at the development of large-scale agriculture.

With the development of market relations, the increasingly powerful class of entrepreneurs began to view government intervention and related restrictions as an obstacle to their activities. The changed situation has confirmed the need to create new system economic knowledge, which found its expression in the formation of the classical school. Prominent representatives of this direction: V. Petty, A. Smith, D. Ricardo.

For the first time, A. Smith most fully substantiated the basic ideas of the classical school in his “An Inquiry into the Nature and Causes of the Wealth of Nations” (1776). According to his interpretation, the market system is capable of self-regulation, which is based on the “invisible hand” - personal interest based on private property and associated with the desire to make a profit. Personal interest acts as the main driving force of economic development. One of the central ideas of A. Smith’s teaching was the idea that the economy would function more efficiently if its regulation by the state was excluded 6, p. 84-86.

The best option for the state is to adhere to the policy of laisser faire (French expression: let everyone go their own way) - non-interference of the state. The English version of this expression is: let it be - let everything go as it goes. Since the main regulator of the economy, according to A. Smith, is the market, therefore, it (the market) should be given complete freedom.

The classical direction dominated quite long time, until the crisis phenomena of 1929-1933. many of its provisions were not questioned. Representatives of this direction believed that the mechanism of market competition automatically ensures equality of supply and demand and any long-term disruption of this balance and deep economic crises are excluded. This was justified by the fact that in market conditions prices, wage, interest rates are quite flexible and change quickly under the influence of supply and demand, adapting to new market conditions.

An important stage in the theoretical understanding of the role of the state in a market economy was associated with the name of the outstanding English economist J. Keynes. The ideas that revolutionized the classical views on the market economy were presented in the book “The General Theory of Employment, Interest and Money” (1936). This means the emergence of a new direction in views on GRE - Keynesianism. Keynesian theory, based on actual facts of the first half of the 20th century, proceeded from the fact that prices, interest rates, and mainly wages are not quite flexible in the market and change in the short term slowly, and not quickly - as in classic version. Therefore, they move towards the equilibrium point of aggregate supply and demand in a slow motion.

Keynes believed that classical theory could not explain how to reduce unemployment, which, becoming massive, requires more and more government funds and creates an unfavorable social situation. He explained that the essence of macroeconomic regulation is to control expenses when income changes, which change much faster than inflexible prices and wages 12, p. 91.

Keynes believed that the state can regulate economic development by influencing aggregate demand. Aggregate demand is the real national production of goods that consumers, businesses, and the government are willing to buy at a given price level. It was in the lack of “effective” demand that Keynesian theory saw main reason crisis phenomena in a market economy.

In a purely market economy, Keynes believed, there are no such levers 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 by the central authorities within the framework of the economic system in which we live” 12, p. 93.

Keynesians believed that government economic policies could contribute to GNP growth and employment. Yes, growth government spending will contribute to an increase in GNP and thereby increase employment. In addition, the state must stimulate investment growth for these purposes by increasing money circulation and lowering the interest rate. Keynes also included among the tools for regulating investments: increasing public investment and their efficiency, expanding government spending and purchasing goods. As a result, production will expand, additional workers will be attracted, and employment will increase 12, p. 94.

Thus, economic policies reflecting the ideas of Keynes were pursued by most developed countries of the world after the Second World War. It is believed that it was she who largely contributed to mitigating cyclical fluctuations in the economy. Considering the economic instruments for regulating aggregate demand - monetary and budgetary, preference was given to the budgetary one.

Monetarism (English money - money; monetari - monetary). From the second half of the 70s - early 80s. There was an intensive search for new approaches to GRE. If employment was the central issue during the development of Keynesian theory, then the situation changed. The main problem was inflation with a simultaneous decline in production (stagflation). Keynesian recommendations to increase budget expenses and thus pursuing a policy of deficit financing in the changed conditions turned out to be unsuitable. Budgetary injections into the economy could only increase inflation, which is what actually happened 12, p. 99.

As a school in economic science, monetarism places monetary relations at the basis of market relations. IN post-war period The role of monetarism was revived by the famous American scientist, Nobel Prize winner Milton Friedman (Chicago school) “Counter-revolution in monetary theory” (1970), “Money and economic growth” (1973).

Unlike Keynesians, who assign money a secondary role in determining economic activity, monetarists believe that the money supply is the single most important factor affecting the level of production, employment and prices. Keynesians advocate extensive government intervention in the interests of stabilizing the economy, while monetarists are supporters of a free market with limited government regulation 12, 103.

Supporters of the monetarist trend focus on “stable demand for money,” i.e. at a constant rate of growth of the money supply. When a mutual relationship is achieved between the amount of money in circulation and aggregate demand, constant growth in the money supply allows aggregate demand to respond synchronously to the increase in the natural level of real output. In this case, full employment and price stability will be achieved in the long run. Monetarists assign an important role to the Central Bank in maintaining stable and predictable growth rates of bank reserves and money supply 12, p. 106.

A consideration of two alternative options for the monetary policy mechanism by monetarists and Keynesians shows:

1) monetarists believe that a change in the money supply, i.e. money supply, directly affects aggregate demand and then the volume of production in the country;

2) Keynesians assign a special role in their mechanism for conducting monetary policy interest rates and investment spending in influencing the country's output.

It should be borne in mind that the specific monetary policy of a particular country is not based purely on the provisions of one economic school. But at the same time, it may give greater priority at a given stage of development to one particular concept. Thus, in the USA, despite the predominant influence of monetarism in monetary policy, it also contains tools promoted by Keynesians - forced regulation of interest rates and investment costs 6, p. 89-91.

The priority role of monetarism in the development and implementation of monetary policy over the past decades in Western countries has led to a reduction in government intervention in the banking and credit sector. In almost all Western countries, the main responsibility for monetary policy lies with the Central Bank, which seeks to influence macroeconomic processes using more flexible (indirect) methods: regulating the amount of money in circulation; regulation of bank reserves; regulation of the size of loans and credits provided to commercial banks; interest rate regulation, etc.

The essence of monetarism can be reduced to two fundamental theses:

1. Money plays a major role in macroeconomics.

2. The Central Bank can influence the money supply, i.e. on the amount of money in circulation (growth of no more than 3-5% per year).

The monetarist approach is that the market system, if it is not subject to government intervention, they believe, provides significant macroeconomic stability, since it is sufficiently competitive. Public administration considered bureaucratic, ineffective and even harmful to individual initiative; it suppresses human freedom. The public sector, in their opinion, should be as small as possible. The ideological roots of monetarism go back to classical economic theory 6, p. 92.

Thus, the views of Keynesians and monetarists on the role of the state in the economy, on the private and public sectors, are almost diametrically opposed. For all their inconsistency and discrepancy, it can be definitely noted that the differences relate to the forms and share of government intervention in the economy. The modern market is impossible without government intervention. The market is characterized by antisocial actions and tendencies that lead to a violation of not only micro-, but also macro-proportions, and, consequently, to financial, economic and other crisis phenomena. Experience has shown that they are limited only by government regulators.

1.3 The role and limits of government intervention in the economy

Despite the fact that the state takes on the functions of eliminating the negative socio-economic consequences of an imperfect market, creating favorable conditions for the functioning of the national economy as a whole, its intervention in the economy should not be unlimited. The border, the limit of state regulation of the economy is the effectiveness of the market economy as a system. Crossing this line can lead to the disappearance of economic incentives that ensure the effective functioning of the market mechanism. Excessive participation of the state in the economy and its performance of unusual functions contribute to the nationalization of the economy and changes in the economic system 7, p. 82.

So, the state is an integral subject of the economy in any economic system. The place and role of the state in the economy differ depending on one or another type of economic system 7, p. 83-85.

The state occupies a significant position in the traditional economy. In conditions of backward, primitive technology, which does not allow for economic growth, the state performs important distribution functions, redistributing a significant part of the national income. These funds are allocated by the state to provide material support to the poorest segments of the population.

In a planned economy, the role of the state reaches significant proportions. This is especially characteristic of a command planned economy, which operates primarily on the basis of administrative methods of management. In a command planned economy, the state concentrates economic power in its hands, makes basic economic decisions (what, how much, how and for whom to produce), disposes of state property, which occupies a dominant place in the economy.

Due to the fact that the state strictly controls and patronizes enterprises, they are deprived of economic and operational independence, self-financing is proclaimed only in words. Of course, enterprises strive to focus on the market, but market requirements are not decisive. And such a market itself consists of a complete deficit.

The state strives to achieve balance and proportionality in the economy through directive planning. Work plans are communicated to economic entities (enterprises, organizations) from a single planning center (ministry, committee), prices are approved, suppliers are identified and assigned, and sales are regulated. Government authorities strictly monitor the implementation of plans. The objective basis of directive planning is the presence in the economy of only one owner - the state.

Directive planning turns into administration for enterprises, which contradicts the laws of economic development. Negative traits state intervention in the economy consists of the bureaucratization of economic and political structures. It is no coincidence that they were called the administrative-command or administrative-bureaucratic system. Such government intervention goes beyond reasonable boundaries, blocks the mechanism of competition, putting in its place a state monopoly 7, p. 88.

Consequently, excessive concentration of economic functions in the hands of the state leads to the emergence of an extreme form of command economy - a state-owned economy. Too much expansion of the state's sphere of activity in the economy and the performance of functions unusual for it contribute to a decrease in the efficiency of its functioning, a slowdown in the rate of economic growth, and the emergence of imbalances.

In a funny economy, the state is freed from functions unusual for it (satisfying the full aggregate demand, directive planning, etc.). It deals with what society cannot exist without in modern conditions and what it avoids private sector economy. Such an economy is based on a multi-structure economy, on market competition and macroeconomic regulation; the state is assigned a strictly defined role in economic life.

Even the system of free competition does not work without the state, which takes on a certain responsibility within those limits of economic life where the market mechanism does not give the effect society needs, since it has both positive and negative aspects (monopoly, inflation, crises, unemployment). Therefore, it is natural that the state seeks to develop a mechanism for forecasting and programming the market.

As a result, a transition must be made to a system where the market regulates the activities of enterprises and firms, and the state regulates the functioning of the market in accordance with its laws. This means a minimum of government intervention in the activities of enterprises and the market. This intervention is carried out through the mechanism of state regulation of the economy, which should meet the interests of not only the state, but also the interests of enterprises, firms and workers 7, p. 89.

Currently, the economic basis of state regulation of the economy is GDP, redistributed through the state budget and extra-budgetary funds, and state property. The effectiveness of GRE, other things being equal, is higher, the higher government revenues, the greater the share of GDP is redistributed by the state, and the greater the role the public sector plays in the economy. But state revenues and the public sector have relative growth limits 2, p. 99.

1. Limits for the growth of government revenues: limits for sufficient motivation for entrepreneurial activity; social boundaries of taxation of employees and the middle strata; GDP growth boundaries (market boundaries).

2. The possibilities of state ownership are also limited. The public sector cannot grow, capturing more and more positions in key sectors of the national economy.

So, the main limit of the GRE is the possible discrepancy between its goals and the private interests of capital owners in conditions of relative freedom to make economic decisions.

In general terms, the permissible limits of government intervention in the economy are wide enough for reasonable government regulation measures and an effectively functioning market mechanism to solve major socio-economic problems. If the state tries to do more than what is allotted to it by the market economy, then, as a rule, negative deformations of market processes occur, production efficiency decreases and, as a result, the level and quality of life of the people decreases. Then, sooner or later, it becomes necessary to denationalize the economy, freeing it from excessive government intervention 2, p. 103.

Thus, the following conclusions can be drawn from the chapter:

The state plays an important role in the economic development of society. The state throughout the history of its existence, along with the tasks of maintaining order, legality, organizing national defense, etc. performed certain functions in the economic sphere. Therefore, in modern conditions, non-interference of the state in socio-economic processes is unthinkable.

By defining the goals of state regulation for a specific time period, the state is faced with the problem of mutually contradictory goals. Therefore, the most difficult issue of state regulation is the search for an optimally harmonious system of goals.

For effective economic development, it is still necessary to more decisively remove unnecessary, burdensome functions in the economy from the state, transferring them to the market system. In this regard, speaking about the problem of the state and the market, the solution must necessarily be built on the basis of the market mechanism, but in no case separately.

Chapter 2. Instruments of state regulation of the economy

2.1 Main directions of economic activity of the state

One of the most important areas of state activity in a social market economy is regulation of the economy. In turn, state regulation of the economy is a system of economic activities of the state, through which it can influence the socio-economic development of society and is aimed at achieving the following goals 5, p. 241:

Creation of normal conditions for the functioning of the market mechanism;

Ensuring sustainable growth rates;

Regulation of structural changes in the economy caused by the needs of the modern scientific and technological revolution;

Ensuring social stability and social progress;

Solving environmental problems.

State regulation of the economy includes various areas of economic activity of the state (Appendix 1).

Creation of a legal basis for economic activity; development of legislative and regulatory documents regulating the functioning mechanism of the economy as a whole and its individual subjects. Through this function, the state determines a set of “rules of behavior” in the economy.

Creation of public goods - the creation and implementation of public goods is the task of the state. At the same time, the state can only guarantee such a level of consumption of public goods that is allowed in this moment time resources state budget. Their production above this level is entrusted to non-governmental organizations 5, p. 242-243.

3. The implementation of antimonopoly policy can only be entrusted to the state, which, using administrative and economic measures, has an active influence on maintaining the competitive order. Antimonopoly legislation includes a set of legal acts aimed at protecting the competitive environment, countering monopolism and unfair competition.

4. An external effect is an effect that influences firms and consumers in the production of goods and services; it can be either negative or positive. For example, the construction of railways caused environmental pollution - this is a negative externality. And the construction of an irrigation system by one farmer, as a result of which the quality of the land of other farmers improves without additional investments, is an example of a positive external effect 5, p. 244.

5. Creation of economic infrastructure - a complex of organizations that provide conditions for reproduction; there are several types of infrastructure 5, p. 245:

Production (power supply, transport and communications networks);

Institutional (state management apparatus);

Social (educational, medical, cultural institutions);

Information (a set of information channels and storage facilities, information technologies).

Society urgently needs the creation and operation of economic infrastructure. At the same time, the market, due to the uncertainty of effective demand for infrastructure elements, limits its participation in this process and transfers this function to the state.

6. State entrepreneurship - the activities of state enterprises that produce goods and services necessary for the development of the national economy. The state as an entrepreneur acts, on the one hand, as a typical entrepreneur, and on the other hand, as a special “public” entrepreneur. Unlike a private entrepreneur, the state is focused not only on making a profit, but also on providing goods, works, and services that ensure the functioning of the economy as a whole, including private capital. The expansion of public entrepreneurship activities is closely dependent on the capabilities of the state budget. Stimulating its development with relatively limited resources may force the state to use internal and external loans. This in turn will limit the financial base of state entrepreneurship 5, p. 246.

7. Redistribution of income is the withdrawal of part of the income from some persons for the purpose of transferring it to other persons or the voluntary transfer of income by some persons to others who need it more. There are various forms of income redistribution (Appendix 2).

Government procurement of goods and services - this method of redistributing income mainly affects military orders, civil construction programs, and the financing of capital investments in state-owned enterprises. State procurement of goods guarantees entrepreneurs a stable sales market, making a profit, and also helps solve problems of employment and welfare.

Government loans and subsidies - provided to legal and individuals, local authorities at the expense of state or local budgets, as well as special funds.

Tax redistribution of income - implies partial or complete exemption from paying taxes for some persons and an increased rate of payment for others. This measure of income redistribution is aimed at achieving certain social and economic goals.

A market economy is characterized by unevenness and cyclical development, which is accompanied by job loss and stratification of the population by income. The state assumes the function of paying benefits to the unemployed, families with children, disabled people and other groups of the population in need of social assistance. The state supports social programs that ensure the population's access to education, healthcare, culture, physical culture and sports 5, p. 247-248.

8. Macroeconomic stabilization of the economy - a measure of state regulation aimed at preventing and slowing down the economic downturn, consolidating and maintaining economic performance indicators at a certain level, and improving the economy. Macroeconomic stabilization is achieved primarily through fiscal and monetary policies. The main measures aimed at achieving macroeconomic stabilization include: changes in government spending, taxes, etc. During a crisis situation, achieving economic stabilization requires emergency measures provided for by the program for stabilization or recovery of the economy 5, p. 249.

9. Fiscal policy is the conscious use of expenditure and tax functions government to achieve certain macroeconomic goals. If the economy operates below its capabilities, then the state pursues an expansionary fiscal policy. It is carried out through an increase in government spending and a reduction in tax rates, which, as a rule, leads to an increase in the budget deficit. To overcome inflationary gaps, a restrictive fiscal policy is used, which involves reducing government spending and increasing tax rates 5, p. 250.

10. Support for small businesses. Small business is understood as a set of small and medium-sized private enterprises that are not directly included in any monopoly association and perform a subordinate role in relation to monopolies in the economy. Small business helps maintain competition in a market economy, create jobs through tax and credit policies, provision of services, and so on.

11. Regulation of foreign economic activity. The strengthening of the role of the state in foreign economic activity is influenced by factors such as increased competition in world markets; destabilization of exchange rates; increased balance of payments imbalances; huge foreign debt 5, p. 252.

Each state strives to create favorable external conditions for the development of the national economy. Based on specific national interests, the state pursues either a policy of liberalization or protectionism. State regulation of the external environment occurs through a set of measures that can be divided into customs tariffs and non-tariff regulatory measures.

12. Support for fundamental science, implementation of a general scientific, technical and innovation policy - the constant introduction of new equipment, technologies that are the result of scientific and technological progress, and the development of invention. Further improvement of market relations implies an even greater increase in the importance of knowledge, scientific developments, ideas, etc.

13. Security environmental safety- an important function of the state in a social market economy. The second half of the 20th century showed that extensive economic development is accompanied by a number of negative consequences. Among them are the destruction of ecosystems and the loss of part of GDP. Such losses lead to negative economic, financial and social consequences. They can be eliminated either by reducing the rate of economic development, or by implementing a set of measures to green production. In turn, the state 5, p. 253-255:

Organizes a system for monitoring, assessing and monitoring changes in the state of the environment under the influence of anthropogenic influences;

Creates a network of stationary observation stations; aerospace monitoring equipment makes it possible to monitor changes in parameters characterizing the state of the environment;

Through laws, tax policy, and administrative sanctions, forces entrepreneurs to comply with environmental measures and environmental standards;

Controls operation natural resources, establishes bans and restrictions on the production of certain products.

2.2 Methods of state regulation of the economy

The state carries out its functions using a variety of methods of influence. Methods are classified according to various criteria. There are different methods of direct and indirect influence.

Methods of direct influence force economic entities to make decisions based not on independent economic choice, but on state regulations. Direct methods are often highly effective due to the rapid achievement of economic results, but they also have disadvantages. They affect not only those market agents who are directly targeted by government measures, but also the subjects associated with them through market relations. In other words, direct methods disrupt the natural development of market processes 8, p. 124.

Methods of indirect influence create only the prerequisites for the fact that when making an independent choice, subjects of economic relations prefer options that correspond to the goals of economic policy. Such methods include, for example, programming, providing economic information to the market sector. The disadvantage of indirect methods is a certain time lag that occurs between the moments when the state takes measures, the economy reacts to them and real changes in economic results 8, p. 125.

Methods of state regulation are also classified according to organizational and institutional criteria. Here, administrative and economic methods are distinguished; let's look at this classification in more detail 8, p. 127-129.

1. Administrative methods are based on regulatory actions related to the provision of legal infrastructure. The purpose of the measures taken is to create certain “rules of the game” in a market economy. Administrative methods prescribe a strictly controlled line of behavior for economic agents. Administrative methods of regulating the economy include:

A ban is a prohibition of any activity, recognition of any goods and services and their components as socially harmful, unnecessary, and not permitted for use. For example, a state may introduce a transit ban, i.e. passage through the territory under its sovereignty of persons, goods and vehicles of other states it does not like for the purpose of ensuring security or for other reasons.

A permit is a consent issued in written or oral form by a management entity that has the appropriate right. The state gives permission to conduct many types of economic activities, to import and export a number of goods (medicines, food). For example, in the UK there is special permission to expand production capacity. It is issued by local authorities in agreement with the fire supervision and control authorities. environment and etc.

Coercion is one of the management methods based on censure and the application of penalties for violation of established norms. For example, late payment taxes, a decrease in the tax base leads to the collection of fines from taxpayers.

2. Economic methods do not limit freedom of choice; sometimes they expand it. An additional incentive appears to which the subject can either react or not pay the slightest attention, in any case reserving the right to freely make a market decision. A change, for example, by the state in the interest rate on its debt obligations adds one more option to the number of available options for profitable placement of savings - the purchase or sale of government securities.

IN modern society State regulation of the economy is carried out primarily on the basis of economic methods. Significant positions among economic methods are occupied by 8, p. 133-135:

Monetary policy is a set of measures in the field of money circulation and credit aimed at regulating economic growth, curbing inflation, ensuring employment and equalizing the balance of payments. Monetary policy includes the following regulatory instruments: regulation of the discount rate; establishing and changing the amount of minimum reserves that financial and credit organizations are required to keep at the central bank; operations of government organizations on the securities market.

Fiscal policy comes down to the purposeful activities of the state to use the fiscal and monetary systems to implement socio-economic policies and depends on the specific economic and political situation, as well as on the country’s economic development strategy. Depending on these factors, different degrees of redistribution of national income through the budget are envisaged, a greater or lesser level of centralization of financial resources within the budget system, strengthening or weakening of regulation of the use of budget funds, priority of budget financing of certain activities, and the choice of ways to achieve balance budget revenues and expenses, etc.

Accelerated depreciation is depreciation at increased rates compared to current or average rates. The meaning of accelerated depreciation is to establish a level of annual write-offs to the depreciation fund that exceeds the actual moral and physical depreciation of fixed capital elements. Accelerated depreciation allows you to transfer a significant portion of profits to tax-free production cost items. This policy helps to increase the own financial capabilities of entrepreneurs to make capital investments, as well as to reduce the share of borrowed funds in the process of capital construction and modernization of capital.

In developed countries, current economic regulation and state economic programming are used 10, p. 355.

1. Current regulation of the economy is carried out mainly through fiscal policy. A significant role in such regulation is given to government spending: orders and purchases of goods and services, direct military expenditures, various subsidies and other expenses.

Current economic regulation is aimed primarily at maintaining a certain level of production and employment. In a period when economic development is characterized at a fast pace, measures are envisaged to curb investment and thus prevent overproduction. Such measures include reducing government spending on the purchase of goods and services, increasing the cost of credit, reducing subsidies, and increasing taxes 10, p. 356-357.

In the context of falling production volumes and rising unemployment, opposite measures are applied: government spending increases, credit becomes cheaper, taxes are reduced. At the same time, it must be taken into account that excessive growth of government spending leads, as a rule, to a budget deficit, to cover which additional taxes are introduced and external loans are taken.

2. State programming is a long-term, targeted regulation of the economy, providing for the development of not only economic, but also social programs. State programming can cover the entire economy as a whole or its individual sectors, regions, individual population groups, and so on. Exist different kinds state programs, depending on the use of specific criteria, they can be divided into a number of types 10, p. 360.

1. Depending on the time period, programs are: short-term (from 1 to 3 years); medium-term (period of 3-5 years); long-term (drawn up for 5 years or more).

2. Depending on the programming object, there are:

The national program sets out the main economic and economic guidelines that are desirable for society as a whole. social development. The programs are aimed at the activities of the public sector, as well as at regulating the activities of private firms.

Regional programs cover the activities of individual parts of the economy. In a number of countries, the socio-economic development of regions is carried out through regional planning.

Targeted programs provide for the development of specific areas (scientific research), support for certain groups of the population (retired people, military personnel).

An emergency program is developed in cases where the economy is in a state of crisis (consequences of climate, environmental disasters, military operations, economic crises).

State programming is most common in Western European countries, as well as in Japan, less so in the USA and Canada, where preference is given to the current regulation of the economy. Economic programming is also used in developing countries. This is explained by the fact that developing countries are faced with problems in their development that cannot be overcome through the mechanism of spontaneous regulation of economic processes 10, p. 362.

Responsibility for the development of state programs rests with public authorities, which involve famous scientists, entrepreneurs, public figures etc. A financial and economic feasibility study is drawn up for the state program, and government bodies approve the volume and mechanism of financing. At the same time, government programs are advisory (indicative) in nature; they are not obligatory for implementation by the private sector of the economy.

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