Subjects, objects and methods of state regulation of the economy

The economic policy pursued in this or that state is very important for ensuring the attainment of the goals of society and power. The methods of state regulation, as well as special tools, often referred to as funds, help to fully implement it.

Instruments for regulating the economy can be divided into the following groups:

1. Monetary Policy:

- refinancing policy (discount rate of interest);

- a policy of minimum reserves (the norm of mandatory minimum reserves);

- open market policy.

2. Fiscal policy :

- public expenditure policy ;

- a policy of state revenues.

The subjects of economic regulation are all those who implement economic policy - this can be the state, regional, local institutions, as well as non-state unions and associations.

Many schools have differently defined what is included in the concept of the object and what methods state. Regulation exist. I would like to take a closer look at the rather popular system of views of ordoliberalism, which is most often found in educational literature.

They referred to the objects of reproduction conditions, regions, sectors of the economy, territories, situations, foreign policy environment, as well as economic interests of the subjects.

The methods of state regulation were divided, firstly, into general and private ones. The first group includes the following:

- a method of scientific abstraction;

- analysis and synthesis;

- system approach.

The second group is represented by methods such as extrapolation, economic groupings, and also budgetary (balance sheet) methods.

In addition to this classification, there are several others, in which the methods of regulating the economy are divided according to direct or indirect effects. Direct assumes that all the ways of the subjects regarding the adoption of economic decisions are deliberately outlined by the state, and their behavior must correspond to certain guidelines.

These include control over financial operations of enterprises, the establishment of prices and tariffs, the definition of production assignments.

Indirect methods of state regulation are less rigid, they tend to direct subjects in the right direction. The sense is not in coercion to do so, but not otherwise, but in creating conditions in which a voluntary decision would be beneficial to society and consistent with the goals of economic policy, i.e. There is an impact on economic interest.

Indirect methods include state methods. Regulation:

1. Preventing bankruptcy (legislatively).
2. Conjunctive (anti-crisis, anti-inflationary policy).
3. Fiscal policy.
4. Monetary policy.

Also, the methods of regulation are advisory, in which the state's main task is to facilitate the functioning of the economy; Institutional, related to the formation of institutions (market), as well as vertical and horizontal management.

Undoubtedly, the application of these or those methods depends on the country itself, the political regime, as well as many economic factors. In developed countries, very rarely, they resort to direct, administrative methods of influence. However, in extreme conditions, for example, during wars or serious crises, such methods of state regulation are not ignored.

It is worth reminding that even advanced countries in many cases do not neglect state intervention, combining indirect and direct methods, which under certain conditions leads to a positive effect.

You can not say that some methods are bad, and some are good. Depending on the political, economic and social situation in the country, the state prefers this or that influence, sometimes using a combined effect.