Transformation of the instruments of government regulation of the economy: from non-interference to strategic managementt

Aim. The presented study aims to investigate the evolution of interpretations of the government's role in the economy and to identify and describe the modern functions of the government in the economy and the corresponding regulatory instruments.

Tasks. The authors theoretically analyze the approaches of major economic schools to the interpretation of the government's role in the economy in different periods; identify historical patterns in the transformation of government functions depending on external conditions; describe economic problems in the modern world; determine government functions and effective instruments for their implementation in the current context.

Methods. This study uses general and special methods, such as induction and deduction, analysis and synthesis, generalization, systematization, comparative analysis, and content analysis. The methodological basis of the study includes the works of economists of various historical eras representing major economic schools, as well as modern research on the history of economic thought and government regulation.

Results. The approaches of leading economic schools to substantiating the adequate degree of government intervention in the economy are analyzed – from the pre-scientific period to modern Nobel laureates. The historical and economic features of different eras are established, and the most effective instruments of government regulation of the economy are indicated for each era. Based on global development trends, the main economic features and problems of the XXI century are highlighted, which are universal in the context of globalization. The transformation of government functions in the modern economy is substantiated. The authors propose an original approach to the classification of government functions depending on their focus on solving specific problems and identify instruments for implementing new functions.

Conclusions. The study highlights universal government functions in any society, such as producing public goods, protecting law and order, and updating legislation. The scope of government intervention in the economy and the selection of regulatory instruments are justified differently in the concepts of economic schools, depending on the characteristics of the external environment. During the development of human society, the degree of government influence on the economy changes. As social relations and technology become more advanced, government functions in the economy become more complex and new goals and forms of regulation appear. Government functions in the modern economy can be divided into four categories: ensuring economic development, facilitating technological progress, maintaining human capital, and economic globalization. The focus is shifting towards instruments for strategic planning, forecasting, and management and a program-oriented approach to the implementation of government functions.

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