The contents

The economic science is called to define how to use the limited resources maximum effectively - natural stocks, capitals, labour reserves. Like other branches of knowledge, the economy includes a set of axioms and proofs, suitable for the analysis in any concrete conditions. And in this narrow sense it can not be national, as well as there can not be a American physics or German mathematics. The prices of the goods everywhere are defined by a parity of a supply and demand, with the growth of the income there is a reduction of its consumed part and increase gathering.

But the economy has basic difference from exact and natural sciences: it has business not with the separate man on a uninhabited island, but with the member of a society subject to influence of traditions, national mentality and political institutes. The toolkit of the economist has therefore national specificity.

The science is formed approximately the same as the tree grows or the building is constructed. The great economists of the past have put in pawn the base, have created the theory named as microeconomy. As initial item for the analysis a facilities of the businessman and farmer were taken. The microeconomy studies the relation between the businessmen (competition), businessmen and hired workers, sellers and buyers. It formulates the laws: supplies and demand, rarity-decreasing income, limiting productivity of work or capital. The microeconomy is directly connected to enterprise activity, at the same time being a management for business.The economic theory created in 18 - 19 centuries is named classical, it answered requirements of development of an industrial society based on a private property and freedom of an economic choice. The creativity of ingenious Adam Smite for economy is compared to the invention of a wheel.

Gradually national economy is turning to complex systems of branches forming a global economy. Periodically repeating economic crisises, chronic - unemployment and inflation become a rule.

Business practice includes problems, which are not solved through traditional means. The economists begin to be interested in questions of general balance, cumulative demand, money manipulation.

The 20 centuries appeared to be a stage of macroeconomy. The large system is not only set of small subsystems - firms and branches, but also a new quality. Its actions are operated by other mechanisms. Macrosystem can not be described by categories of microsystem (price, profit, competition etc.). New techniques and tools here are necessary.

The Macroeconomic analysis becomes a basis of state politics, development of the programs, selective (“dot”) methods of influence. But macroeconomic is knowledge that works not far from business. You see such formulas, as the return dependence between inflation and unemployment in scale of a society, or between bank percent and rates of growth of a total product, between growth of inflation and downturn of the exchange rate of domestic currency is necessary to know, even to expect changes of a conjuncture and probable general idea of government, direction of state regulation of economy.

“ Most of all laws were created in vague times of republic... ”

The state regulation of economy has a long history. The practice here outstrips the theory. During early capitalism in Europe there was a centralised control above the prices, quality of the goods and services, interest rates and foreign trade.

17 century – is a century of the pioneers of the normative economic theory - wrote that only detailed management on the part of government is capable to supply the order in economic sphere. They saw in a state management a means of ensuring social validity.

With transition to capitalism and appearing of free competition, many aspects of “pioneers” theory were destroyed. The approach of people who based a classical economy (18 centuries), limiting state intervention in economic life, has the historical explanation. You see in that period economy was ruled by the market and freedom of a choice. In economic sense freedom assumes two main components: the right, to a private property protected by the law and independence of acceptance of the decisions. In 18 - 19 centuries the economic role of the state was reduced, basically, to protection of these primary rights. The XX century was market by almost universal strengthening of economic presence of the state.

From the second half of 19 century national manufacture has achieved unprecedented scales. The end of the century is connected with explosion, jump in scientific - technical development and appearance of new branches. All these circumstance needed requirement for co-ordination, for maintenance of proportions on macro-level, for anticyclic regulation.

The amplification of state regulation was dictated by the purposes of preparation to wars, their conducting, maintenance of war-protection. The whole system of measures including compulsory movements system (GERMANY), protectionism (Japan) was developed. The army-industrial complexes closely connected to government were formed.

The state regulation of economy was necessary for realisation of social politics, for general strategy socialisation in a broad sense. Collective consumption or satisfaction of public requirements (public health services, education, support deprived and others) are impossible without use of state levers and organisations.

And, at last, it would be desirable to emphasise, meaning day today's, need for state support and sometimes organisations of fundamental scientific researches, and also protection of environment.

The state regulation, thus, is caused by occurrence of new economic needs, with which the market on the nature can not consult.

And, though the similar regulation in modern market economy is carried out in much smaller scales, than in administrative - command system, nevertheless here economic role of the state is great, is special in comparison with the system of a free competition.