№ 9/2018

Fìnansi Ukr. 2018 (9): 73–90https://doi.org/10.33763/finukr2018.09.073

FINANCIAL AND ECONOMIC REGULATION

DUNAEV Borys ¹, LYUBICH Oleksandr ²

¹SESE "The Academy of Financial Management"
OrcID ID : https://orcid.org/0000-0003-2925-0276
²SESE “The Academy of Financial Management”
OrcID ID : https://orcid.org/0000-0002-9339-4242

Financial management of macroeconomic processes

The article specifies that for today in the world practice the instruments of financial management of the state by macroeconomic processes are the amount of cash and demand deposits and the speed of circulation of money, which supplemented by fiscal, depreciation, investment and market instruments. The central bank of the country can offer as much money as necessary from year to year for the balance in the money market, setting the amount of cash and demand deposits and the interest rate that determines the speed of circulation of money. Keynesian provision of market equilibrium achieved by adjusting consumer demand to achieve full employment, and the concept of neo-conservatism stabilizes prices to ensure a potential output. The author’s dynamic, discrete deterministic model of the State Educational and SESE “The Academy of Financial Management” achieves a balance of the economy, that is, an increase in real GDP, due to the right amount of money in circulation and an expanded recovery of capital in production, and achieves market equilibrium through self-regulation of inflation. It is shown that in order to ensure stable development of the country’s economy with a constant growth of real GDP, an expanded reproduction of production capital and the amount of money in circulation at the cost of capital loaded in production are necessary for inflationary self-regulation of market equilibrium. Insufficient amount of money in circulation leads first to a depression of the economy, and then to deflation. In the article considered expanded reproduction of production capital provided by depreciation and net investments. Depreciation deductions are the main source of investment. If use depreciation charges for other purposes, it can destroy own production. Net investment is a part of the net profit of production. Without net profit it is impossible to expand the reproduction of productive capital. It is proved that the lack of investment in productive capital leads to the impossibility of a stable growth of real GDP.

Keywords:economy, capital, money, reproduction, investment, depreciation, inflation, finance, management

JEL: E22, G32, G34

Dunaev B. . Financial management of macroeconomic processes / B. Dunaev , O. . Lyubich // Фінанси України. - 2018. - № 9. - C. 73-90.

Article original in Ukrainian (pp. 73 - 90)

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