IDEAS home Printed from https://ideas.repec.org/a/bal/journl/2256-07422018425.html
   My bibliography  Save this article

Instability And Its Government Regulation

Author

Listed:
  • Taisiia Bondaruk

    (Department of Finances, Banking, and Insurance, National Academy of Statistics, Accounting and Audit, Ukraine)

  • Nataliia Melnychuk

    (Department of Finances, Banking, and Insurance, National Academy of Statistics, Accounting and Audit, Ukraine)

  • Igor Bondaruk

    (Department of Marketing, Management and Business Administration, Pavlo Tychyna Uman State Pedagogical University, Ukraine)

Abstract

The research proves that the breach of stability in the economic system, as well as the appearance of the instability phenomenon, arise immediately after losing some balance between the population and government. As the result, the development of the institute of the state with the proper regulative set of instruments, as well as the extending of the international relations can take the instability from micro- and mezo-levels to macro- and meta-levels. It analyses and defines the concepts: state and budget instability. Particularly, the definition of the political, financial, social, as well as economic instabilities is enhanced. Key problems of state instability, which may occur as a result of unsuccessful government regulation and ineffective management with budgetary funds, are distinguished. The aim of the article is to develop the concept of instability and its types, to determine the causal interconnection for distinguishing the problems of state instability that may influence the state economic development. The target of the research is the theoretical and methodological bases of the instability occurrence and its state regulation. The research methodology. According to the aim set, we determined the methodological basis of the research: the abstract-logical method - to sum up the theoretical basis of instability; the systemic analysis - to characterize the types of instability; the analysis and synthesis - to estimate the influence of the state instability on the state economic development; the graphics method - to demonstrate final results of the research; economic-statistic - to define the problems of the state instability that may influence the state economic development. Conclusions. It has been proved that instability is the condition of the system that is characterized by the variation that happened through breaking the existing interconnection in it. The instability is that basic feature that characterizes all social andeconomic processes. The danger occurs when the level of instability in the state exceeds some standards. We determined political, economic, social, financial and budget instabilities as well as gave the authors' definition of these phenomena after distinguishing the theoretical bases of instability. It has been proved that the government instability consists of these types. We have proposed to determine the government instability as the condition of the state characterized by the constant changes in political, economic, social, financial, and budget spheres because of the factors that influence changes in its structure and functional characteristics accompanied by the phenomena that have a negative influence on the state development in general. The indexes analysis of the international rating and collation of its results with the graphic interpretation of the government instability have helped to prove that Ukraine has the low level of the government instability. It has been classified into five groups of problems in the economy. The analysis of the existing problems, the identification of their influence on the instabilities, as well as the clarification of their interconnection gave the possibility to study the influence of the unsuccessful state regulation on the management with budgetary funds.

Suggested Citation

  • Taisiia Bondaruk & Nataliia Melnychuk & Igor Bondaruk, 2018. "Instability And Its Government Regulation," Baltic Journal of Economic Studies, Publishing house "Baltija Publishing", vol. 4(2).
  • Handle: RePEc:bal:journl:2256-0742:2018:4:2:5
    DOI: 10.30525/2256-0742/2018-4-2-32-39
    as

    Download full text from publisher

    File URL: http://www.baltijapublishing.lv/index.php/issue/article/view/377/pdf
    Download Restriction: no

    File URL: http://www.baltijapublishing.lv/index.php/issue/article/view/377
    Download Restriction: no

    File URL: https://libkey.io/10.30525/2256-0742/2018-4-2-32-39?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. D. Colander & H. Follmer & A. Haas & M. Goldberg & K. Juselius & A. Kirman & T. Lux & B. Sloth, 2010. "The Financial Crisis and the Systemic Failure of Academic Economics," Voprosy Ekonomiki, NP Voprosy Ekonomiki, issue 6.
    2. Pavel Trunin & M. Kamenskih, 2007. "Monitoring Financial Stability In Developing Economies (Case of Russia)," Research Paper Series, Gaidar Institute for Economic Policy, issue 111.
    3. Guttentag, Jack & Herring, Richard, 1984. "Credit Rationing and Financial Disorder," Journal of Finance, American Finance Association, vol. 39(5), pages 1359-1382, December.
    4. Frederic S. Mishkin, 1996. "Understanding Financial Crises: A Developing Country Perspective," NBER Working Papers 5600, National Bureau of Economic Research, Inc.
    5. Mr. Garry J. Schinasi, 2004. "Defining Financial Stability," IMF Working Papers 2004/187, International Monetary Fund.
    6. Susan Schroeder, 2009. "Defining and detecting financial fragility: New Zealand's experience," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 36(3), pages 287-307, February.
    7. Crockett, A, 1997. "The Theory and Practice of Financial Stability," Princeton Essays in International Economics 203, International Economics Section, Departement of Economics Princeton University,.
    8. Hyman P. Minsky, 1992. "The Financial Instability Hypothesis," Economics Working Paper Archive wp_74, Levy Economics Institute.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ebrahimi Kahou, Mahdi & Lehar, Alfred, 2017. "Macroprudential policy: A review," Journal of Financial Stability, Elsevier, vol. 29(C), pages 92-105.
    2. Kremen Viktoriia & Shkolnyk Inna & Semenog Andrii & Kremen Olha, 2019. "Evaluating the Relationship Between Financial Sustainability and Socio-Economic Development of Countries," Central European Economic Journal, Sciendo, vol. 6(53), pages 25-38, January.
    3. Tabak, Benjamin Miranda, 2013. "Financial Stability and Monetary Policy - The case of Brazil," Revista Brasileira de Economia - RBE, EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil), vol. 67(4), November.
    4. Gabriel Jiménez & Jesús Saurina, 2006. "Credit Cycles, Credit Risk, and Prudential Regulation," International Journal of Central Banking, International Journal of Central Banking, vol. 2(2), May.
    5. Filip, Bogdan Florin, 2014. "Financial-Monetary Instability Factors within the Framework of the Recent Crisis in Romania," Working Papers of National Institute for Economic Research 141213, Institutul National de Cercetari Economice (INCE).
    6. Santiago Fernández de Lis & Jorge Martínez Pagés & Jesús Saurina, 2001. "Credit growth, problem loans and credit risk provisioning in Spain," BIS Papers chapters, in: Bank for International Settlements (ed.), Marrying the macro- and micro-prudential dimensions of financial stability, volume 1, pages 331-353, Bank for International Settlements.
    7. Cyrille Lacu, 2000. "Les ressorts de la crise financière majeure de 1997-98 au Japon : de la responsabilité du politique à l’action du superviseur," Revue d'Économie Financière, Programme National Persée, vol. 56(1), pages 77-125.
    8. Zoya Mladenova, 2017. "Reflections of the Global Crisis 2008-2009 upon Economic Theory: Attempt for Generalization," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 4, pages 3-40.
    9. Vincent Fleuriet & Catherine Lubochinsky, 2006. "Marchés d’actions et stabilité financière : les enjeux de la régulation," Revue d'Économie Financière, Programme National Persée, vol. 82(1), pages 251-261.
    10. Pavel Trunin & M. Kamenskih, 2007. "Monitoring Financial Stability In Developing Economies (Case of Russia)," Research Paper Series, Gaidar Institute for Economic Policy, issue 111.
    11. Didier SORNETTE, 2014. "Physics and Financial Economics (1776-2014): Puzzles, Ising and Agent-Based Models," Swiss Finance Institute Research Paper Series 14-25, Swiss Finance Institute.
    12. Hiroshi Nishi, 2019. "An empirical contribution to Minsky’s financial fragility: evidence from non-financial sectors in Japan," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 43(3), pages 585-622.
    13. Edwin Dickens, 1999. "A Political-Economic Critique of Minsky's Financial Instability Hypothesis: The case of the 1966 financial crisis," Review of Political Economy, Taylor & Francis Journals, vol. 11(4), pages 379-398.
    14. Tom van Veen, 2020. "Have Macroeconomic Models Lost Their Connection with Economic Reality?," CESifo Working Paper Series 8256, CESifo.
    15. Caccioli, Fabio & Marsili, Matteo, 2010. "Information efficiency and financial stability," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 4, pages 1-20.
    16. Grossman, Richard S., 2007. "Fear and greed: The evolution of double liability in American banking, 1865-1930," Explorations in Economic History, Elsevier, vol. 44(1), pages 59-80, January.
    17. D. Sornette, 2014. "Physics and Financial Economics (1776-2014): Puzzles, Ising and Agent-Based models," Papers 1404.0243, arXiv.org.
    18. Nadežda Sinenko & Deniss Titarenko & Mikus Arinš, 2013. "The Latvian financial stress index as an important element of the financial system stability monitoring framework," Baltic Journal of Economics, Baltic International Centre for Economic Policy Studies, vol. 13(2), pages 85-110, December.
    19. Serpil Kahraman Akdogu & Mehmet Umutlu, 2014. "The Link between Financial System and Economics: Functions of the Financial System, Financial Crises, and Policy Implications," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 5(4), pages 52-66, October.
    20. Kosta Josifidis & Alpar Lošonc & Novica Supić, 2010. "Neoliberalism: Befall or Respite?," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 57(1), pages 101-117, March.

    More about this item

    Keywords

    regulation; instability; Ukraine; state instability; problems of instability;
    All these keywords.

    JEL classification:

    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bal:journl:2256-0742:2018:4:2:5. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Anita Jankovska (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.