Shamborovskyi G. Optimality criteria of state intervention in the market economy in the world economic crisis.

Abstract

The article reviews the problems of optimal state interference in market processes. The questions of needs for government intervention and its positive and negative consequences for the national economy are analyzed. It studies the conditions in which state intervention in the market is objectively necessary. It proves that to establish a direct relationship between the level of state intervention in the economy and economic development is difficult. At once it was proved that the optimal government intervention could be determined through calculation of economic efficiency of state regulation of market relations and economic processes. The kinds of state intervention efficiency in the economy are specified in accordance with the criteria of ratio of costs and benefits. It was determined that the anticrisis policy of the Ukrainian government during the global crisis of 2008-2009 was ineffective. Summing up, it should be noted that the issue of achieving an optimal level of state interference in market processes is individual for each country. The optimum government interventions directly related to its efficiency. If the definition of performance found that government intervention does not improve the economy, the question of its limitations must be one of the key. Despite the objective need for government intervention in the market subject to the availability of crisis, such influence should also be economically justified and can only be appropriate for conditions to achieve improvements in the shortest periods of time.