THE ROLE OF THE STATE IN REGULATING THE ECONOMY
DOI:
https://doi.org/10.55640/Keywords:
state regulation, economic policy, market failure, fiscal policy, monetary policy, economic stability.Abstract
The regulation of the economy by the state remains one of the central issues in modern economic policy. While market mechanisms are effective in allocating resources under ideal conditions, real-world economies frequently experience market failures such as monopolies, externalities, inflation, and unemployment. This study aims to analyze the theoretical foundations, instruments, and effectiveness of state regulation in the economy. Using qualitative analysis of economic literature and comparative policy review, the paper evaluates how fiscal, monetary, and regulatory tools influence economic stability and growth. The findings indicate that balanced state intervention improves macroeconomic stability, promotes social welfare, and corrects market failures, but excessive intervention may reduce efficiency and innovation. The study concludes that an optimal mix of market freedom and state oversight is essential for sustainable economic development.
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Authors retain the copyright of their manuscripts, and all Open Access articles are disseminated under the terms of the Creative Commons Attribution License 4.0 (CC-BY), which licenses unrestricted use, distribution, and reproduction in any medium, provided that the original work is appropriately cited. The use of general descriptive names, trade names, trademarks, and so forth in this publication, even if not specifically identified, does not imply that these names are not protected by the relevant laws and regulations.
Germany
United States of America
Italy
United Kingdom
France
Canada
Uzbekistan
Japan
Republic of Korea
Australia
Spain
Switzerland
Sweden
Netherlands
China
India
