The stabilization policy effectiveness evaluation

Economic Annals-ХХI: Volume 137, Issue 1-2(1), Pages: 81-84

Citation information:
Savchenko, K. (2014). The stabilization policy effectiveness evaluation. Economic Annals-XXI, 1-2(1), 81-84. https://ea21journal.world/index.php/ea-v137-21/

Kostiantyn Savchenko
PhD (Economics),
Associate Professor,
Academy of Municipal Management
33 Ivan Kudria St., Kyiv, 01042, Ukraine
skv80@bk.ru

The stabilization policy effectiveness evaluation

Abstract. The implementation of stabilization policy should directly consider problems, which are linked to evaluating the effectiveness of instruments use, both on theoretical and applied levels.

The aim of the article is to form a model of the effectiveness of stabilization policy evaluating in the conditions of general equilibrium of markets.

When evaluation carried out by the deviation of current values of the parameters from their equilibrium values, it is necessary to take into account all important macroeconomic indicators. Based on analysis of modern approaches to monitoring of the financial stability, a set of parameters to characterize markets of goods, money and labor was established.

The study tested econometric modeling general equilibrium of markets in Ukrainian economy. Regression analysis was used to determine values of such indicators (endogenous variables) by deviations of actual values from equilibrium.

Since these indicators of stabilization policy reflect the level of used instruments of state regulation accuracy, there was an opportunity to make a conclusion about the effectiveness of different financial instruments. Moreover, proposed approach allowed determining the numerical values of the secondary parameters of general economic equilibrium characteristics that is helpful within the effectiveness of the stabilization policy complex evaluating.

Finally, the main conclusion is that for effective stabilization measures impact, it is necessary to use simultaneously reasonable fiscal and monetary instruments. This finding has important implications for the stabilization policy developing.

Keywords: Stabilization Policy; Effectiveness Evaluation; Financial Instruments; Economic Equilibrium

JEL Classification: E27; E63

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Received 10.11.2013