Features of the counter-cyclical policies target orientation defining for the Ukrainian redistributive economy

Economic Annals-ХХI: Volume 137, Issue 1-2(1), Pages: 27-29

Citation information:
Leliuk, Iu. (2014). Features of the counter-cyclical policies target orientation defining for the Ukrainian redistributive economy. Economic Annals-XXI, 1-2(1), 27-29. https://ea21journal.world/index.php/ea-v137-07/

Iuliia Leliuk
PhD (Economics),
Associate Professor,
Poltava State Agrarian Academy
1/3 Skovoroda St., Poltava, 36003, Ukraine
iuliia_leliuk@i.ua

Features of the counter-cyclical policies target orientation defining for the Ukrainian redistributive economy

Abstract. The article deals with the necessity of revising the purposes of counter-cyclical government regulation for the Ukrainian economy. It is proved that Ukraine’s economy tends to non-market ones, thus, to the redistributive economy of the X-type. The economic system of this type is characterized by the unstable macroeconomic equilibrium state, and the pursuit of economic entities to maximize profits leads to the increase in the total loss for the society. This means that the counter-cyclical regulation of the Ukrainian economy, which is aimed at achieving the return of a new macroeconomic equilibrium, drives the economic system into «the trap of crisis cyclicality». The cyclical behaviour acquires the character of «rocking vibrations», and the business cycle actually turns into a two-phase phenomenon of the «crisis-depression» type, which is not able to provide an updated translational motion with respect to the general trend of development. The «kick-out» of the economy from the trap is possible with the help of such counter-cyclical policy, which considers as the main objective not the achieving a new equilibrium point (in the framework of the existing state), but the transition of the economic system into a qualitatively new state. In this regard, the theoretical basis for counter-cyclical policy should not consist in the growth theory, but in the theory of evolution. Changes in the targeting of counter-cyclical policy mean its «greening», the pre-emptive usage of centralized methods (comparing with market methods), and the measured and cautious approach to the usage of conventional tools of counter-cyclical regulation inherent in the Y-economies. The continuous control of the economic system state and its degree of approximation to the X- or Y-type in order to determine the «shift point» gains the particular importance.

Keywords: Counter-Cyclical Policy; Industries with Increasing and Decreasing Return; the Equilibrium State of the Economy; the X- and Y-Economies; «Trap of Crisis Cyclicality»

JEL Classification: B49; E39; E60; H19; P59

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Received 02.10.2013