IDEAS home Printed from
   My bibliography  Save this article

The misbalances of aggregate demand in Ukraine's economy


  • T. Shynkorenko, Т. Makushenko


The article presents the results of an investigation on the formation of aggregate demand in Ukraine. The authors prove that, as a result of the inefficient government's policy, in Ukraine, the misbalances of domestic demand are aggravating, being the main disproportion the excessive inclination towards consumption, with a clearly insufficient development of the investment component. The low rate of the generation of fixed capital cannot ensure the financing of an active modernization of Ukraine's economy, especially with regard of the unprecedentedly high level of the physical wear and tear of fixed assets, insufficient development infrastructure and a weak development of many modern Economic activities. Domestic consumer demand is distorted towards the excessively high share of private demand, while the government demand is clearly insufficient to solve the problems of restructuring and sustainable development of Ukraine's economy. Predominant expansion of private demand without a corresponding development of domestic production encourages the expansion of imports leading to the increase in the deficit of the foreign trade balance.

Suggested Citation

  • T. Shynkorenko, Т. Makushenko, 2014. "The misbalances of aggregate demand in Ukraine's economy," Economy and Forecasting, Valeriy Heyets, issue 1, pages 7-24.
  • Handle: RePEc:eip:journl:y:2014:i:1:p:7-24

    Download full text from publisher

    File URL:
    Download Restriction: no

    More about this item


    Access and download statistics


    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:eip:journl:y:2014:i:1:p:7-24. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Iryna Bazhal). General contact details of provider: .

    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.

    We have no references for this item. You can help adding them by using 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.