nature of government regulation depends mainly on the type of economy, but it is always present in the planned economy and the market.In the first case, the state control is total and determines all areas of socio-economic development, as we move to a market economy begins to weaken its value.State regulation in this case becomes a periodic intervention in the economy and is intended to eliminate potential and existing problems.

main methods of state regulation

Methods of state regulation is directly dependent on the nature of the economy.Key management practices are divided into direct and indirect.

Direct methods aimed at resolving economic relations administrative tools.These include statutory standards in t
he form of bans, permits, and various forms of coercion.They are called direct because the address have an impact on economic actors, for example, introduced a license for the sale of certain goods.

administrative methods are used mainly in the fields of public conduct, such as national security, environmental protection, etc., as well as separate legislation in other areas of economic activity.These control methods are essential in the planned economy, but the market is more limited and must be justified by economic interests.

Indirect methods are called different economic, which makes them particularly important in a market economy.The essence of indirect methods is to influence the economic situation in general, retaining the right to choose individual subjects.

main government instruments in this case are the financial and monetary policies and a variety of government programs with which the state is able to smooth out economic fluctuations and to create a more modern, competitive operating environment.This is most clearly the action of indirect methods is shown during a recession or overheating of the economy, when stabilize the situation can only state holding a certain fiscal and monetary policy.

ratio methods of state regulation

not the case that the state interfering in the economy, using any one type of methods.Always have the relation of both direct and indirect methods of regulation.It depends on the area in which is held this or that policy, and the nature of economic development in general.As we move from a command to a market economy and economic direct methods of regulation are becoming increasingly connected to each other.