Financial stability as an important component of macroeconomic stability: theoretical and methodological aspect

Abstract

Introduction. Macroeconomic stability of the state has an extremely important role for all levels of socio-economic relations. Since the factors influencing the indicators of economic recovery and growth of the state are determined by indicators of macroeconomic stability, further research and development of effective measures to manage financial risks and increase stability do not lose their relevance. The purpose of the paper is to review and summarise the main approaches to defining the essence of the terms "macroeconomic stability" and "financial stability", considers the classification of approaches to the term "macroeconomic stability of the national economy", and indicates the main criteria for the stability of the financial system. Results. For thorough research and focusing attention on individual areas, as a set of the most interrelated processes, phenomena, and macroeconomic dependencies, four macroeconomic sectors were singled out - internal real sector, financial (fiscal), monetary, and external economic. Three levels of ensuring the financial stability of the macroeconomic system are considered: microprudential, mesoprudential and macroprudential. Endogenous and exogenous factors influencing financial stability and the macroeconomic and macro-financial stability parameters are defined, and guidelines for effective management of the national economy are substantiated. Conclusion. It was determined that ensuring economic recovery and further sustainable growth are defined by the effectiveness of the use of appropriate financial and monetary instruments, the development of the national financial infrastructure, the appropriate institutional environment, the proper performance by the financial system of its functions of redistribution of financial resources between economic entities, the ability of the financial system to be invulnerable to external and internal contingencies and adverse events. The necessity of the sound public finances, balanced monetary policy, a predictable and fair regulatory framework, and flexible labor markets were emphasized.