Macroeconomic policy features analysis under macroeconomic instability

Economic Annals-ХХI: Volume 147, Issue 1-2(1), Pages: 11-14

Citation information:
Radionova, I. (2015). Macroeconomic policy features analysis under macroeconomic instability. Economic Annals-XXI, 1-2(1), 11-14. https://ea21journal.world/index.php/ea-v147-03/

Iryna Radionova
D.Sc. (Economics),
Professor,
Kyiv National Economic University named after Vadym Hetman
54/1 Peremohy Ave, Kyiv, 03680, Ukraine
irina.radionova@gmail.com

Macroeconomic policy features analysis under macroeconomic instability

Abstract. Introduction. The macroeconomic policy analysis is an important area of modern macroeconomics. It uses a rather complicated and advanced research instruments. However, there is a problem with the special instruments application for economies with slow economic development level and high macroeconomic instability, to which the Ukrainian economy belongs.

Results. The relevant evaluation of the macroeconomic policy results under unstable macroeconomic situation in Ukraine have been achieved in the research by implementation and critical consideration of four approaches: 1) estimation of actual macroeconomic parameters deviation from their equilibrium values, 2) estimation of actual macroeconomic parameters variability deviation from the optimal variability, 3) estimation of actual parameters the deviations from targeted by the government, 4) estimation of the government contribution to the macroeconomic imbalances overcoming. The conducted analysis made it possible to conclude about practicality of achieved results for actual evaluation of state macroeconomic policy effectiveness in highly unstable economies.

Conclusion. Each approach in the macroeconomic policy analysis has advantages and disadvantages. Identified disadvantages are: low probability of finding the equilibrium values of macroeconomic variables for unstable economies; the difficulties of representative group of countries forming for the optimal values of variability evaluation; lack of realism and complexity in assessing the macroeconomic situation under using one government target in some macroeconomic sector; the probability of over-abstraction model designs under estimation the government limitation of macroeconomic imbalances.

Keywords: Macroeconomic Policy; Macroeconomic Instability; Macroeconomic Variables Volatility; Macroeconomic Indicators Targeting

JEL Classification: B4; E6; H30

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Received 03.11.2014