ПЕРЕОСМИСЛЕННЯ ФІНАНСОВОЇ ТА ГРОШОВО-КРЕДИТНОЇ ПОЛІТИКИ В КОНТЕКСТІ ДОСВІДУ РИНКОВОЇ ТРАНСФОРМАЦІЇ ТА ПЕРСПЕКТИВ ЕКОНОМІЧНОГО РОЗВИТКУ УКРАЇНИ

Abstract

The article is dedicated to the issue of adequacy of financial resources for structural changes in the context of market transformation of Ukraine’s economy. It was determined that formal character and uncompleted market reforms in most cases had resulted a strong motivational environment to reduce the domestic development potential and the spread of the shadow economy. The decisive factor in the implementation of the relevant changes was the use of cheap labor, which allowed maintaining a high level of employment, but at the cost of falling efficiency and profitability of production. The GDP cut by almost half but unemployment rate achieved 2%, and not only the labor force but also the enterprises that were privatized depreciated. The funds raised from their sale served as an additional, but very limited, source of public finance. The objects of privatization were depreciated enterprises, the funds from which served as an additional, but very limited, source to public finance. Their permanent deficit with falling GDP required a stronger tax component to offset rising government spending. The article presents the consequences of using a deficit model of the economy financing, in particular: falling GDP, including GDP per capita, the formation of a large power of the self-employed population, a significant spread of the shadow economy and the associated large stratification, development of inflationary processes, strengthening of tax pressure on legal business, deteriorating technical and technological condition of enterprises, lack of investment resources in their renewal, a significant amount of non-performing loans, which limits the motivation to invest as well as essential accumulation of debts. The proposals are made to change the model of economy financing via the transition to domestic sources of expanding effective demand, which stimulates increased productivity through innovation and investment. The implementation of this model involves a consistent increase in the cost of labor, consistent with the reduction of the tax burden, strengthening incentives to reduce costs and increase efficiency and provides expanded investment based on increasing domestic demand.