JEL Classification: G20
Zelensky Andriy, PhD in Economics, Deputy Head of the Department of Finance, Banking and Insurance, Podolsky State Agrarian and Technical University, Kamyanets-Podilsky, Ukraine
ORCID ID: https://orcid.org/0000-0002-0725-0171
THE ESSENCE OF THE CONCEPT OF FINANCIAL REGULATION OF DEVELOPMENT OF THE ECONOMY OF THE STATE
Introduction. In the current conditions of post-crisis recovery of the economy, the problem of the effective use of financial resources and the maintenance of an effective financial policy becomes particular urgent. It should be noted that a successful solution to the strategic objectives of financial policy is implemented through the financial mechanism and its components. The main structural subsystems of the financial mechanism are financial support and financial regulation. They are, accordingly, financial methods of influencing economic processes in the state. Therefore, without studying the theoretical content of the regulatory categories essence, financial regulation, it is impossible to determine the priority of directions and ways of implementing the state’s financial policy at the present stage.
Purpose. The purpose of this paper is to determine the theoretical foundations of the essence of the notion of “financial regulation,” the allocation of the main forms and instruments of financial regulation of the development of the economy, as well as the substantiation of the own definition of the concept of “financial regulation”, taking into account existing scientific research and modern trends in the development of the state economy.
Results. The article deals with the views of scholars on the essence of the “state regulation of the economy” and “financial regulation” concepts. It is revealed that the mechanism of state influence on financial and economic processes is implemented through the category of financial regulation as an integral part of the state regulation system of the economy. Grouping and systematization of existing views on the essence of financial regulation are carried out. The actual definition of the concept of “financial regulation”, which emphasizes the interrelations between the constituent elements of the financial regulation system of the state economy development, is proposed. The main forms and instruments of financial regulation of economic development are allocated, their relationship is revealed. It is established that the choice of financial instruments and the appropriate degree of their influence should be based on the most stimulating nature. It is proved that only in this case, financial regulation can play an essential role in ensuring sustainable development of the state’s economy.
Conclusions. Summarizing the research of financial regulation instruments for the development of the state’s economy, one can conclude that only by combining internal sources of financing and available resources of financial and credit institutions and with the state support for the financial and credit provision development of production infrastructure it is possible to create a solid financial basis for the Ukrainian economy functioning.
Keywords: regulation, financial regulation, financial mechanism, forms of regulation, financial regulation instruments, financial policy.
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