INSTABILITY AND ITS GOVERNMENT REGULATION

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 and economic 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.