კონფერენცია

∘ Leila Mamulashvili ∘ Maka Sosanidze ∘
MACROECONOMIC POLICY AS AN IMPORTANT GUIDELINE FOR GOVERNING ECONOMIC BEHAVIOR

Summary

Flexiblemacroeconomic policy is an important factor for maintaining macroeconomic stability and economic growth.Its significance lies in the fact that it deals with all spheres of public life, and macroeconomic indicators clearly show where and how they should be aimed at improving the welfare of human resources.

Macroeconomic policies are the government's economic measures adopted in this area, actions and goals of the system, objectives and interests of economic processes giving directions, economic behavior and controlling them to influence.

Macroeconomic policy includes two main levers of economic management: fiscal (budget and finance) and monetary (money-credit). Fiscal policy is the main tool of economic stability. Wrong fiscal policy can lead to serious negative consequences for the national economy.

Except fiscal and monetary tools which gain pure economic character, other factors also effect on the formation of the macroeconomic policy,-‘’non-economic factors’’ which are worthy taking into consideration in practice.

Three major problems of the macroeconomic policy are highlighted:

1. High and steady level of unemployment over a long period of time;

2. Inflation;

3. The growth rate of output.

The article examines the problems of macroeconomic policy in Georgia. Georgia has sharply reduced the number of jobs. Unemployment among young people is dominant, which further increases social risks and jeopardizes the country's future.

It is necessary to take measures to prevent climate change and policies for promoting economic growth. The Ministry of Finance will continue to provide budgetary expenditures of non-inflationary in future as well.

The government must control global economic events every day as the world economic, international financial market are rather insecure and without having perfect information, it will be impossible to study,analyse and make conclusions of current processes and regulating of own strategies and tactics. Georgian economics must be fully based on the development of the local industry and stimulation of savings; and it also must protect the local market from poor quality production and dumping prices.

Ivane Javakhishvili Tbilisi State University Paata Gugushvili Institute of Economics International Scientific C O N F E R E N C E S "ECONOMY – XXI CENTURY"

E ISSN 2587 - 4691	∘ Leila Mamulashvili ∘ Maka Sosanidze ∘ MACROECONOMIC POLICY AS AN IMPORTANT GUIDELINE FOR GOVERNING ECONOMIC BEHAVIOR Summary Flexiblemacroeconomic policy is an important factor for maintaining macroeconomic stability and economic growth.Its significance lies in the fact that it deals with all spheres of public life, and macroeconomic indicators clearly show where and how they should be aimed at improving the welfare of human resources. Macroeconomic policies are the government's economic measures adopted in this area, actions and goals of the system, objectives and interests of economic processes giving directions, economic behavior and controlling them to influence. Macroeconomic policy includes two main levers of economic management: fiscal (budget and finance) and monetary (money-credit). Fiscal policy is the main tool of economic stability. Wrong fiscal policy can lead to serious negative consequences for the national economy. Except fiscal and monetary tools which gain pure economic character, other factors also effect on the formation of the macroeconomic policy,-‘’non-economic factors’’ which are worthy taking into consideration in practice. Three major problems of the macroeconomic policy are highlighted: 1. High and steady level of unemployment over a long period of time; 2. Inflation; 3. The growth rate of output. The article examines the problems of macroeconomic policy in Georgia. Georgia has sharply reduced the number of jobs. Unemployment among young people is dominant, which further increases social risks and jeopardizes the country's future. It is necessary to take measures to prevent climate change and policies for promoting economic growth. The Ministry of Finance will continue to provide budgetary expenditures of non-inflationary in future as well. The government must control global economic events every day as the world economic, international financial market are rather insecure and without having perfect information, it will be impossible to study,analyse and make conclusions of current processes and regulating of own strategies and tactics. Georgian economics must be fully based on the development of the local industry and stimulation of savings; and it also must protect the local market from poor quality production and dumping prices.