Ways out of the crisis for the economy of Ukraine

Volodymyr Boreiko
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Volodymyr Boreiko: Stepan Demianchuk International University of Economics and Humanities, Rivne

Ukrainian Journal Ekonomist, 2016, issue 2, 17-19

Abstract: The national economy of Ukraine has been in crisis for a long period, which is deteriorating by external military aggression, corruptness of authorities, and the transfer of financial resources in the offshore zones and shadow of economic relations. However, the world economic science for a long time has accumulated many recommendations to exit from the crisis that Ukraine can benefit of. For example, prominent German economists Karl Marx believed that crises in market conditions are inevitable and proposed to eliminate the capitalist mode of production. However, the socialist mode of production was much less effective than the capitalistic that forced Ukraine and other countries with a planned economy to return to the market conditions. Instead, M. I. Tugan-Baranowskyi considered the main cause of crises an imbalance between movement of savings and investment. Therefore, according to the scientist, the regulation of investment only in sectors that produce capital goods could provide a steady expansion of production. The famous British economist John M. Keynes suggested mechanisms to ensure to growth of effective public demand, how determinative factor for increased employment and growth of national income. Based on the provisions of Keynesian theory, the article suggests a way out of Ukraine's economy from the crisis that should provide an increase in demand of legal entities and individuals on industrial products, the growth of income of population and the create a favourable environment for the attraction of foreign investment.

Date: 2016
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