Abstract. The development of the national economy in modern realities is directly related to the processes of state regulation of economic relations. An integral part of the implementa-tion of state regulation of the economy is the mechanism of such regulation, which is a set of all parameters and elements that, in combination, will allow it to be implemented. It is alsoextremely difficult to form an effective system of state regulation of economic processes in the country, which actualizes the need for new scientific mechanisms of such regulation, which would expand the theory of state regulation of the economy, complement the theoretical, meth-odological and applied aspects of its implementation.The article, based on the analysis of the content of such concepts as "regulation", "state regulation", "state regulation of the economy", "mechanism", specifies the essence of the mechanism of state regulation of the economy, which is proposed to be considered as an or-dered system of interconnected components, namely methods, tools , forms and principles that are used and can be applied by state authorities and local self-government bodies to in-fluence the economic behavior of economic entities. Taking into account the nature of the men-tioned mechanism, the article also specifies its features.It is also justified that, taking into account the nature of the mechanism of state regulation of the economy, such a mechanism is characterized by a complex hierarchical structure of the main components, which in their interaction was considered during the analysis of the model of the specified mechanism. This made it possible toestablish that an important condition for its effective functioning is the provision of a rational and logically structured system of interac-tion between its main components: subjects, methods, forms, tools and regulatory levers. Also, the principles on the basis of which it develops and the available resources play an important role in the functioning of such a mechanism.
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