THE ROLE OF THE STATE IN REGULATING THE MARKET ECONOMY

Abstract

This article provides an in-depth analysis of the role, methods and mechanisms of the state in regulating a market economy. There are theoretical views that a market economy is a system operating on the basis of free competition, private ownership and the laws of supply and demand, in which state participation should be limited, and at the same time, practice shows that without the active and effective participation of the state in the economy, it is difficult to achieve such important indicators as macroeconomic stability, a fair competitive environment, social protection, infrastructural development and economic growth. The main functions of the state in regulating the economy are studied in the course of the study - the formation of a regulatory framework, budgetary and tax policy (fiscal policy), monetary policy, coordination of foreign economic activity and mechanisms for supporting social sectors. In particular, the need for state intervention in eliminating "failures" in a market economy is highlighted. The article attempts to define the role of the state in the effective functioning of a market economy, not only as a controller, but also as a developer, regulator, and protector, as well as to draw scientifically and theoretically based conclusions on how these processes can be organized in the context of the national economy.