LEGAL ECONOMIC ORDER AS A BASIS FOR IMPLEMENTATION OF MONETARY POLICY

Author
, Doctor of Law, Associate Professor, Deputy Director, Ukraine, Kiev
, PhD in Law, doctoral candidate, Senior Researcher, Ukraine, Kiev

In heading

 Economic analysis of law;

Signed print

 20.09.2019

Issues number

 2019 - № 3 (38)

Page

 95-114

Type of articles

 Scientific article

Code UDK

 346.5

ISSN print

 2411-5584

Abstract

 Problem setting. Taking into account the normative approach to understanding the principles of the legal economic order, in the theoretical and practical plane it becomes important to clarify how the economic policy of the state, and in this case the monetary component of it, is formed and implemented in a proper relationship with law and order in the field of management. Equally important is the task of clarifying the completeness and correctness of defining the basics of the legal economic order set out in the Economic Code of Ukraine, in comparison with existing doctrinal approaches. After all, the results of monetary policy implementation at the present stage of state development, which are represented by large-scale anti-crisis activity of the National Bank of Ukraine, are unsatisfactory and make one think about whether conceptual approaches to shaping the specified direction of economic policy are justified and agreed with the legal economic order.
Recent research and publications analysis. Some aspects of the complex category “legal economic order” are reflected in the scientific works of domestic and foreign scientists. However, the scientific development of problems of interconnection and mutual consistency of monetary policy with the legal economic order, as well as the completeness and correctness of incorporation into the normative text of the doctrinal approaches to defining the basics of the legal economic order have not been widely spread.
Paper objective. Investigation of the relationship and coherence of monetary policy with the legal economic order and the formation of appropriate proposals.
Paper main body. The article examines the relationship and the consistency of monetary policy with the legal economic order. Particular attention is paid to the analysis of monetary policy at the current stage of state development. The German model of economic (economic) order is examined and the principles on which it is based are analyzed.
Conclusions of the research. The analysis made it possible to reach the following conclusions:
implementation of monetary policy at the present stage of state development is ineffective, which is conditioned by the substantive imperfection of the regulatory category “legal economic order” as a basis for shaping directions of economic policy;
it is argued that it is the principles, as the guiding basis, that should determine the starting points on which a system of legal rules should be formed, which will ultimately determine the substantive content of the legal economic order. It is emphasized that the existing approach to completing the legal economic order by regulations, regardless of the level of legal force, creates prerequisites for situational substantive filling of the legal economic order, depending on the needs of those entities that are able to manipulate lawmaking in their own economic interests;
the existing scientific models of economic (economic) order are considered and, in order to form a system of principles on which the national legal economic order should be built, it is proposed to use the achievements of the continental model presented by the German School of Ordoliberalism;
it is found that the essence of German ordoliberalism is manifested in the form of eight constitutive and four governing principles of the functioning of the social market economy, which can be defined as the doctrinal basis for the formation of the content of the domestic category “legal economic order”.
Short Abstract for an article
Аbstract. The article analyzes the relationship and mutual coordination of monetary policy with the legal economic order. It has been established that the implementation of monetary policy at the present stage of state development is ineffective due to the imperfection of the normative category “legal economic order” as the basis for the formation of economic policy directions. The German model of the economic (economic) order is examined and the principles on which it is based are analyzed. A hypothesis is expressed about the possibility of recognizing such principles as the doctrinal basis for the formation of the content of the domestic category of “legal economic order”, which will contribute to the sustainable development of the state economy.

Keywords

 monetary policy, legal economic order, principles, economic policy, sustainable development.

Reviewer

External reviewer

Article in PDF

 95-114

Bibliography

 1. Znamenskiy, G. L. (1996). Hozyaystvennoe zakonodatelstvo Ukrainyi: formirovanie i perspektivyi razvitiya [The economic legislation of Ukraine: the formation and development prospects]. Kiev: Naukova dumka [in Russian].
2. Podtserkovniy, O. P. (2009). Pravovoy hozyaystvennyiy poryadok kak orientir regulyatornoy politiki gosudarstva [The legal economic order as a guideline of the state regulatory policy]. Yurydychnyi visnyk – Legal Bulletin, 1, 45–49 [in Russian].
3. Ustymenko, V. A. (2007). Vlasnist terytorialnoi hromady mista (hospodarsko-pravovi aspekty) [Ownership of the territorial community of the city (economic and legal aspects)]. Extended abstract of Doctor thesis. Donetsk [in Ukrainian].
4. Gadamer, X.‑G. (1988). Istina i metod: osnovy filosofskoj germenevtiki [Truth and method: the foundations of philosophical hermeneutics]. Moskva: Progress [in Russian].
5. Eucken, W. (1952). Grundsätze der Wirtschaftspolitik [Principles of economic policy]. Tübingen and Zürich: Mohr Siebeck and Polygraphischer Verlag [in German].
6. Miksch, L. (1937). Wettbewerb als Aufgabe: die Grundsätze einer Wettbewerbsordnung [Competition as a task: the principles of a competitive order]. Stuttgart: Kohlhammer [in German].
7. Böhm, F. (1950). Die Idee des ORDO im Denken Walter Euckens. Dem Freund und Mitherausgeber zum Gedächtnis [The idea of ORDO in Walter Eucken’s thinking. To the friend and co-editor to the memory]. ORDO, 3, 15–64 [in German].
8. Lampert, H. (1994). Sotsialnaya ryinochnaya ekonomika. Germanskiy put [Social market economy. German way]. Moskva: Delo [in Russian].
9. Vanberg, V. (2015). Ordoliberalism, Ordnungspolitik, and the Reason of Rules. European Review of International Studies, 7–36.
10. Müller-Armack, А. (1950/1982). Social Irenics. In W. Stützel, C. Watrin, H. Willgerodt, & K. Hohmann (Eds.), Standard Texts of the Social Market Economy. Stuttgart and New York: Gustav Fischer.
11. Marx, R. (2006). Wirtschaftsliberalismus und Katholische Soziallehre [Economic liberalism and Catholic social teaching]. Freiburg Discussion Papers on Constitutional Economics, 06/3, 9 [in German].
12. Starbatty, J. (1984). Ordoliberalismus, in Geschichte der Nationalökonomie [Ordoliberalism, in History of National Economics]. München: Franz Vahlen [in German].
13. Hoppmann, E. (1968). Zum Problem einer wirtschaftspolitisch praktikablen Definition des Wettbewerbs [On the problem of a politically feasible definition of competition]. In H. Schneider (Ed.), Grundlagen der Wettbewerbspolitik (pp. 9–49). Berlin: Duncker & Humblot [in German].
14. Kantzenbach, E. (1965). Die Funktionsfähigkeit des Wettbewerbs [The functionality of the competition]. Hamburg: Göttingen, Vandenhoeck und Ruprecht [in German].
15. Butuzova, A. (2017) Kak vliyaet inflyatsionnoe targetirovanie na ekonomicheskoe razvitie stranyi? [How does inflation targeting affect the country’s economic development?] Finansy i kredit – Finance and Credit, 23 (18), 1063–1071 [in Russian].
16. Kornai, J. (1986). The Soft Budget Constraint. Kyklos, 39 (1), 3–30.
17. Oschadbank privlek u NBU refinansirovanie na 3 mlrd grn v svyazi s naraschivaniem kreditovaniya krupnyih korporativnyih klientov [Oschadbank attracted refinancing from the NBU for UAH 3 billion in connection with increased lending to large corporate clients]. (2017, November 21). Retrieved from https://interfax.com.ua/news/economic/463637.html [in Russian].
18. Ministry of Finance of Ukraine (2019). Indeks inflyatsii 2019 v Ukraine [2019 inflation index in Ukraine]. Retrieved from https://index.minfin.com.ua/economy/index/inflation [in Russian].
19. Hoffmann, A., & Schnabl, G. (2016). The Adverse Effects of Ultra-Loose Monetary Policies on Investment, Growth and Income Distribution. Financial History Workshop,Brussels, 35.
20. Oyken, V. (1995). Osnovnyie printsipyi ekonomicheskoy politiki [Basic principles of economic policy]. Moskva: Progress [in Russian].
21. National Bank of Ukraine (2018). Informatsiia pro nadani Natsionalnym bankom Ukrainy bankam kredyty na strok bilshe trydtsiaty kalendarnykh dniv u 2018 rotsi [Information on loans extended by the National Bank of Ukraine to banks for more than thirty calendar days in 2018]. Retrieved from https://bank.gov.ua/control/uk/publish/article?art_id=62468916&cat_id=37650 [in Ukrainian].
22. Prokuratura Avstrii pidozriuie 30 osib u prychetnosti do vyvedennia hroshei iz zbankrutilykh ukrainskykh bankiv [Austrian prosecutor’s office suspects 30 people involved in withdrawing money from bankrupt Ukrainian banks]. (2019, February 21). Retrieved from https://dt.ua/ECONOMICS/prokuratura-avstriyi-pidozryuye-30‑osibu-prichetnosti-do-vivedennya-groshey-iz-zbankrutilih-ukrayinskih-bankiv-303515_.html [in Ukrainian].
23. Müller-Armack, А. (1966). Wirtschaftsordnung und Wirtschaftspolitik: Studien und Konzepte zur sozialen Marktwirtschaft und zur europäischen Integration [Economic order and economic policy: studies and concepts on the social market economy and European integration]. Freaiburg im Breisgau [in German].

Code DOI

 10.31359/2411-5584-2019-38-3-95

18.09.2019