money supply. Since the exclusive right to issue money in circulation belongs to the
state, then, by conducting monetary policy accordingly, it can influence economic
development. This direction arose in the middle of 50-ies of XX century in the USA,
suggests maintaining a growth rate of money supply at a level of 3-5% per year. Its
founder - the head of the Chicago School of Political Economy Milton Friedman - in
the book "Research in the field of quantitative theory of money" (1956), the book
"Freedom of Choice" opposes active and widespread interference on the economy. On
the cover of the last R. Reagan wrote: "It should be read by anyone who is interested
in the future of America". Monetarist recipes by M. Friedman used by R. Reagan in
the United States, Pinochet in Chile, are largely embodied in the programs of the
International Monetary Fund [7].
The Ukrainian government, Mykola Azarov (2010-2014), also tried to use the
work of the monetarists to stimulate the country's economy, but in our opinion the error
was that: firstly, such actions bring the effect only in the short term and secondly by
increasing the amount of money in circulation the work of foreign enterprises, in the
first place China, has been stimulated, since the Ukrainian consumer market is
represented the products of this particular country the most.
Representatives of neo-liberal doctrine advocate the priority of the freedom of
economic subjects. In their opinion, private entrepreneurship is capable to bring the
economy out of the crisis, ensuring its development and raising the standard of living
of the population. The state must provide conditions for competition and not engage in
excessive regulation of economic life. The main theorist of neo-liberalism is Frederick
von Hayek.
The
institutional
and
psychological
direction
in
economic
theory
(institutionalism) that arose in the United States and other countries at the end of the
IX and the beginning of the 20th century (representatives of Weber T., Gelbrayd J.,
Mitchell U. and others) considers the economy as a system of relations between
business people subjects. The nature of these relations is strongly influenced by
political, sociological and socio-psychological factors, and therefore the object of the
study of institutionalism is the "institutions": the state, corporations, trade unions, as
well as legal, moral and ethical norms, customs, instincts, stereotypes of thinking, etc.
Institutionalism is a peculiar trend in economic science, its peculiarity is that the
supporters of institutionalism, based on the analysis, take not only economic problems
but also associate them with social, political, legal, and etc.
The institutionalization of the economic mechanism, that is, the adaptation of its
components to the development environment of the industry or any other subsystem of
the economy, can bear the corresponding risks, which in institutional theory are
referred to as institutional traps.
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