PaleshkoYa. The possibilities and potential for implementation of domestic borrowing in the economy of Ukraine

Abstract

The paper examines the opportunities and potential for the implementation of domestic borrowing in the economy of Ukraine. Analyzed some of the theory of public debt and debt policy. The emphasis on the problem of modern national economies of the world, which is, in particular, that the accumulated debt so large that current payments begin seriously "put pressure" on the country's budget, forcing to reduce current consumption. Determined that the implementation of the provisions of domestic borrowing in the economy is a corresponding increase in savings and households, ie voluntary deposits money to meet their needs in the future. Accordingly, the dynamics of household savings in Ukraine in 2007-2015. Maturity. Special attention is paid to the study of internal flaws such government borrowing as they inflationary in the long run and crowds out private investment by limiting the absorption capacity of the domestic market. The article proved that in Ukraine, despite government securities conferring zero risk government securities actually a risky investment instruments. Researched ratio of T-bills and the funds raised in the budget in 2008 - 2015 yy. The conditions of implementation of internal borrowing. The economic effect of the content of crowding out private investment. Investigated the relationship between the dynamics of private investment as a component of GDP, and the budget deficit as a means of neutralizing the negative trends associated with the drop in private investment. It is concluded that domestic borrowing is not only a cause but a consequence of reducing private investment and GDP.