Macroeconomic stability evaluation in countries of lower-middle income economies

Lyeonov, S. V.; Vasylieva, T. A.; Lyulyov, O. V.

Purpose. Developing methods to evaluate macroeconomic stability of countries with lower-middle income economies. The results of analysis will help to make conclusions concerning regulatory economic policy in the given countries to their macroeconomic dynamics level. Methodology. While investigating macroeconomic stability, the conception of macroeconomic stability pentagon was used which is based on evaluation of five basic macroeconomic indexes: level of GDP growth; unemployment rate; inflation rate; budget balance of the state to GDP; balance of the current turnovers size to GDP. The applied methodic tools are modification of methods, suggested by Professor of Economics Grzegorz W. Kolodko, Dr. Constantin Zaman, and Branko Drcelic. It is completed with the authors' ideas to consider break of the standard fluctuations, asymmetry and extreme deviations as dynamic indicators of the economic agents' response to the positive or negative impacts of the macroeconomic destabilization. Findings. The results of macroeconomic stability pentagons empiric analysis for countries with the lower-middle income economies at different stages of the economic cycle (precrisis period (2000 - 2006), crisis period (2007 - 2010) and postcrisis period (2011 - 2015)) proved the lack of coordination in different economic policies of every studied state. The statistic indicator of the macroeconomic stability is calculated. It is suggested to calculate its dynamic indicator, which differs from statistic one by considering standard fluctuations, asymmetry and extreme deviations of its subindices. It lets to define low syncronization of the analyzed countries' policies, which have to provide the main five directions of the macroeconomic stability. Originality. The authors propose to calculate the dynamic indicator together with statistic indicator of the macroeconomic stability, that allows: taking into account negative tendencies, which can be leveled owing to stabilization of all other subindices; analyzing behavior of the economic agents as a response to positive or negative impacts; considering the character of distinguishing subindices of the macroeconomic stability integral indicator. Practical value. The obtained results will allow evaluating the rate of coordination of separate components of the economic policy in the studied states with the purpose of achieving macroeconomic stabilization. It is a ground to investigate scripts to achieve macroeconomic stability taking into account an optimal rate of the main subindices of macroeconomic stability integral indicator, minimization of the standard fluctuations break, asymmetry of extreme deviations.


	Наукова періодика України		Naukovyi visnyk Natsionalnoho Hirnychoho Universytetu