Problems with Unemployment

Cost To Individual

· lower income and quality of life

· lower self-esteem, leading to stress and erosion of mental health

Cost To Society

· areas with high unemployment can see increased crime, vandalism and gang activity.

Cost To The Economy

· the average unemployed person costs the British government 8000 pounds a year

· loss of output

· diminished tax base

· increased transfer payments

· increased taxes, increased burden

· increased difficulty for labor market entrants - employers have more choices, they favor experienced workers

· unemployed workers lose their skills

Types of unemployment

· Classical Unemployment: your wage is too high, the price of the good goes up and no one buys it so the firm moves to a cheaper country

· Structural: Unemployment caused by the demand for your product falling e.g. coalmining, we use oil now. Some skills are no longer needed e.g. you are a trained draughtsman but we use computers now

· Frictional: This is the desirable process of finding work, employers looking for the right worker. In order to help accelerate this process, governments assist people looking for jobs with programs and qualification surveys.

· Seasonal: Unemployment caused by changes in seasons.e.g a ski resort is only open a few months a year

· Cyclical/Demand-deficient: Unemployment resulting from business recessions that occur when total demand is insufficient to create full employment.

· Regional Unemployment: if there is a coalmining area which closes down there will be large unemployment in that area

· Voluntary Unemployment: you are unemployed by choice, you get money from the government anyway

· real wage: is a form of dis-equilibrium unemployment that occurs when real wages for jobs are forced above the market clearing level. Traditionally, trade unions and wages councils are seen as the institutions causing this type of unemployment.

Solutions to unemployment

· boost aggregate demand e.g. increase gov. spending, build statues (creating jobs), reduce taxes

· interest rates reduced: more investment, more money borrowed, more money spend, more jobs

· Supply side economics: train the workers make them more skilful. Also reduce taxes to increase working incentives

· Lower the retirement ages/ raise school leaving age: it reduces unemployment however these days is unlikely

· Conscription: the army counts as employment

Inflation

· Definition of inflation and deflation

· Inflation is defined as a sustained rise in the average price level and a fall in the value of money.

· Deflation is defined as a sustained fall in the average price level and a rise in the value of money.

Costs of inflation

· Inflation may harm some individuals and benefit others. Individuals with liquid assets which are not collecting interest may be harmed. Individuals with fixed assets such as paintings, housing, etc. will benefit.

· creates uncertainty

· exports become less competitive

· efficiency of the price mechanism is lost because inflation distorts the signaling power relative price changes. A consumer of firm witnessing the price of good X rising cannot be sure that it is now relatively more expensive as she cannot know whether the prices of other similar good have increased by the same percentage. This confuses the decisions of consumers and firms.

· poor people are more vulnerable to inflation. They have fewer choices to hedge against inflation and, in addition, they cannot borrow money.

· if actual inflation proves higher than expected inflation, then borrowers gain at the expense of lenders. The money they will be paying back will be worth less than expected.

Costs of deflation

· consumers delay purchases since they come to expect further price decreases. Aggregate demand decreases due to fall in consumption, decreasing more average price level.

· The real value of outstanding debt increases, therefore less consumption.

· Firms are forced to cut prices to win over customers, squeezing their profit margins and forcing them to cut down on costs. Wages fall and layoffs follow so AD shifts further to left.

· Since the real value of indebtedness increase some banks cannot service their loans. Banks accumulate loans that are not repaid and thus the risk of a banking crisis.

· Monetary policies are unsuccessful because interest rates cannot be under zero

· Expansionary fiscal policy may also prove ineffective as households may prefer to save and postpone spending.

Causes of Inflation

· cost push: Inflation that occurs when there is an increase in the cost of production.

· demand pull: Inflation that occurs when a sector of the economy increases the demand for goods and services.

· excess monetary growth: The money supply increases, and prices increase.

12. Fluctuation of market economy and economic growth

12.1. Cyclic growth if market economy

12.2. The economic cycle and its stages

12.3. The types and reasons of economic growth

The Purpose to lectures - acquaint student with main positions given to lectures and give student theoretical material on subject "Cyclic economic development as regularity of macroeconomics"

Keywords: cyclic developments of market economies, economic cycle, crisis, falling-off of production, depression, stagnation, activity, ascent, expansion

The Economic cycle presents itself seasonally reiterative and the following friend for the other ascents and declines to economic activity on background of the general trend of the economic growing.

For the first time, the economic cycle has manifested themselves in England, where in 1825 was a noted first crisis over-production (so then named the economic decline or recession). Thereafter seasonally once in 7-12 years this phenomenon is repeated. With 1857года cycle became to carry the world nature, since this year economic decline (recession) has struck all the most developed countries. The deepest decline in capitalistic country existed in 1929-1933 and fell into history under name "Great depression": fall production reached in some country 40%.

The scientific theory of the round-robin development has developed K.Marks in "Capital" on base of the labor theory of the cost. The classicists and neoclassical did not acknowledge the natural nature of the round-robin development. They supposed (many their followers suppose and presently) that declines are caused exzogen (that is to say external for economy) factor: war, revolution, but basically wrong money-credit policy state.

Economic cycle is divided on four phases:

but) depression - a period of the quick fall of the total demand in combination with quick fall GDP and growing of the unemployment, which, finally, is terminated by achievement of the undermost point of the cycle (the achievement of the undermost point of the cycle possible and without depression).

b) ascent - increasing of the total demand in combination with growing GDP and reduction of the unemployment;

in) boom - a period, when total demand reaches, but then, on measure of the approximation to peak of the cycle, exceeds the level potential GDP. It is reached full employment, appearance of the surplus demand brings about growing total level prices (the inflation).

g) decline - a phase the following for boom. The total demand falls, causing in the beginning moderate reduction GDP and unemployment, but then, on measure of the further reduction of the total demand, begins depression.

Hereinafter, there were open cycles to other length, connected with periodic renovation of the component parts of the fixed capital and goods spare.

The cycles to small length (3-4) are identified the cycles Kitchina, are connected with fluctuations goods spare;

N. Kondratiev has opened "greater cycles of the economic conjuncture" (1928г.) - a cycles by length in 40-50 years, connected with structured changes to economy;

The economic growing exists, when grows the level of the potential volume of production at time. (Graphic this can be presented as shift of the crooked production possibilities to the right, or as shift to the right crooked total offer in models AD - AS.) However usually under economic growing understand the growing of the real volume of production at time.

Economic growing possible to define two ways:

1. as increase real GDP (or GNP, or national income, or any other unit, measuring real volume national production);

2. as increase real GDP (or GNP, or national income, or any other unit, measuring real volume national production) per capita. This factor pays as attitude of the total issue (the income) to the number of the population.

Both these ways are used for feature of the economic growing, however, for different integer.

Economic growing of any country is defined six times main factor, five from which are connected with physical ability of the economy to growing:

1. growing amount and quality capital good (the fixed capital);

2. growing amount and quality of the labor;

3. growing amount and quality natural resource;

4. efficient use factor production so as, raising their capacity, maximizing their contribution to expansion production output;

5. development and introduction technically progressive methods production and new products (technological прогрессивность).

The last two factors particularly important if on economic condition of the country affects world trade, intensifying importance of competitiveness for countries with high share of the export and import.

All transferred factors pertain to factor of the offer, and exactly they define the potential of the economic growing.

Depending on that, what way is realized economic growing, distinguish extensive and intensive type of the economic growing.

If the source of the economic growing emerges the growing to capacity of the labor, exists the intensive type of the economic growing.

However these two types sooner emerge as ideal models. In real reality economic growing can be determined as mainly extensive if dominating role in increase the product plays the extensive factors. But if dominate the intensive factors, that economic growing characterize as mainly intensive.

Questions for self-control

1. What is an economic cycle?

2. Give the feature a phase economic cycle- crisis, depression, activity, and ascent?

3. What is an economic growing?

13. The money system of state

13.1. The money system and its types

13.2. The main of credit

13.3. The bank system of Kazakhstan

Keywords: money system, credit system, money market, supply and demand, credit, forms of the credit, credit system,

The historically established forms of money circulation in different countries, which are subject to regulation on a national scale.

The basis of any monetary system is a defined money commodity that serves as a universal equivalent. Its stipulated weight represents the content of metal of the country’s monetaryunit, but in its functions as a circulation and payment medium this commodity may be substituted for nominal symbols of value (hard or paper money). Feudal and subsequentlybourgeois states legislatively regulated the conditions and forms of monetary turnover, establishing certain kinds of currencies, the rate of exchange of these currencies, and theconditions of their interchangeability and convertibility into real money (or into foreign exchange which could be converted into gold). State monetary policy in presocialist formationsreflects interests and contradictions within and between classes, the struggle of social groups, the struggle between the interests of every state in the world economy, and economicand political contradictions between different countries and groups of countries (monetary unions and foreign-currency blocs).

In regulating money circulation, the state establishes the name of the monetary unit and the weight content of the monetary commodity (currency metal) contained in this unit, whichserves as a monetary standard. (If the weight of the currency metal in the monetary unit is not fixed by law, its gold content is set indirectly through the rate of foreign exchange.) Thestate also determines the kind of money, whether hard or paper, the procedure of its issue into circulation and the nature of the security, the forms and conditions of clearing operationsand the circulation of private credit money (notes, checks), and the procedure of exchange of national currency for foreign currency and of the establishment of the rate of exchange.From these fundamental principles follow the requirements of uniformity and also of the relative constancy of the value of monetary units and the elasticity of the mechanism ofmonetary systems.

There are several basic types of monetary systems. Systems of metal circulation in which the money commodity is functioning in monetary form can be divided into monometallicsystems, in which one metal serves as currency, and bimetallism, in which two metals gold and silver serve as currency. In systems of the circulation of nominal money, the money commodity does not function at all in monetary form: these systems include paper money circulation and banknote circulation. Systems of both metallic and nominal-money circulationbecame predominant under the conditions of the general crisis of capitalism. With banknote circulation, the following subtypes of monetary systems are possible: (1) banknotes freelyredeemable for gold in bullion (goldbullion standard); (2) banknotes indirectly redeemable for gold through foreign currencies convertible in gold (goldexchange standard); (3) banknotesredeemable with limitations for foreign exchange (allowed to all citizens, only to foreigners, only on current items of balance of payment, or different combinations of these conditions at a single or differentiated rate of exchange); (4) restricted redemption of banknotes and monetary media on current accounts, redeemable in gold only for foreign central banks ofissue (such an exchange system existed after World War II until August 1971 only in the USA); and (5) the inconvertibility of money media in the accounts of central and other bankseither to gold or to foreign exchange (closed currency).

With regard to their role and importance in the capitalist world economy, there are three distinct types of monetary systems: imperialist systems, which play a leading role in currencyblocs or areas; colonial and dependent systems; and sovereign systems. Despite the downfall of the colonial system, monetary systems of the colonial type are still not liquidated, andthe neocolonialism in the monetary realm is manifested by the establishment of the currency dependence of developing countries on the imperialist powers through currency areas andconstraining credits and loans, which lead to the violation and even loss of the monetary sovereignty of these countries.

At the time of the general crisis of capitalism, the formerly existing gold standard was abolished. During World War I and the following period of economic reconstruction, the mostacute paper-money inflation in the history of capitalist countries set in. Later on, free fluctuating systems of gold-bullion and gold-exchange standards were established. Abandoningthese systems as a result of world economic and money-credit crises of 1929-33, the overwhelming majority of countries adopted a monetary system of money and banknotecirculation, in which the convertibility of currency notes into real moneygoldis indirect or restricted. The gold standard in its old form was not reestablished. Thus, in the era ofimperialism and the general crisis of capitalism the instability of the monetary systems is continually increasing.

Unlike the capitalist monetary system, the socialist monetary system is a type of planned, nationwide organization of monetary circulation. The socialist monetary system has anumber of distinctive features: the planning of money circulation and hence the control of money flows on a national scale and in individual regions. The system of regulation of theissuance of money in socialist countries flexibly combines the strictly centralized management and control of money issuance operations with the organizational and technicalimplementation of these operations at the local level. For timely replenishment of the peripheral regions, which is necessary for the money turnover, money is introduced into circulationnot only in the center but also in every region of the country. Under socialist monetary systems, promissory (payment) notes (such as bills of exchange) do not circulate outside ofbanks and cannot function as credit circulation media: the issue of circulation media not only is monopolized by the government but also is centralized in one governmental body.Therefore, the anarchy of money circulation, a characteristic feature of capitalism connected with the issue and circulation of private credit instruments, is fully eliminated. The principleof centralization of the planned management of monetary systems is consistent with the economic role of a socialist state; it also reflects the importance of a monetary system whichin a planned economy must ensure the coordination from a single center of activities of all elements of the economic structure. Under the socialist monetary system, the entire moneyturnover, including all settlement of accounts (cash and noncash) of enterprises, economic organizations, and institutions at the state, cooperative, and public levels are concentrated ina single governmental credit system. The spheres of the cash and noncash settlement of accounts are strictly delineated by law. (This is another way in which the socialist monetarysystem differs from the capitalist.) At the same time the unity of money turnover is ensured: the clearing monetary media are converted into cash and vice versa.

In the majority of socialist countries the gold content of the currency has been established and the rate of exchange in relation to foreign currencies has been fixed. But the goldcontent of the currencies of some countries (the Democratic Republic of Vietnam, the Korean People’s Democratic Republic) is being established indirectly by fixing the rate ofexchange of these currencies in Soviet rubles and US dollars. In all socialist countries, hard and paper money are in circulation. Paper money is issued either only in the form ofbanknotes or in two formstreasury bills and banknotes (USSR, Rumania, Czechoslovakia). However, treasury bills are not issued to cover a deficit in the state budget: treasury billsare issued by the same procedure as banknotes and are actually backed in the same wayby both commodities and gold. Thus, treasury bills differ only nominally from banknotes.Under normal conditions, the issuance of banknotes is used only as a source for crediting the national economy by the bank. Thus, the socialist monetary system is a system ofbanknote (credit) circulation, organized according to plan on the basis of balanced revenues and expenditures of the population. An important role in the strengthening of the socialistmonetary system is played by the currency monopoly, which ensures economic and political independence and the planned development of the economy of each country and thestability of its monetary system. Its use precludes the possibility that imperialist states might, through fiscal or monetary measures, exert pressure to inflate or depress the exchangerates of the currencies of socialist countries.

The Republic of Kazakhstan has a two-tier banking system. The National Bank is the central bank of Kazakhstan and presents the upper (first) tier of the banking system of Kazakhstan. All other banks present lower(second) tier of the banking system, excluding the Kazakhstan Development Bank, that has peculiar legal status.

Objectives, principles of activity, legal status and authorities of the National Bank are determined by the Law of the Republic of Kazakhstan “On National Bank of the Republic of Kazakhstan”.

National Bank performs the regulation and supervision over certain questions of banking activities within the limits of its authority and contributes to formation of common conditions for the functioning of banks and organizations performing certain banking operations.

Regulatory and supervisory functions of the National Bank towards the bank and organizations performing certain banking operations are targeted at maintenance the stability of monetary system of the Republic of Kazakhstan, protection of interests of banks’ creditors, their investors and clients.

The National Bank of Kazakhstan represents, within the limits of its authority, the interests of the Republic of Kazakhstan in the relations with the central banks, banks of other countries, international banks and finance and credit organizations.

The National Bank in performing its tasks should not be guided by the aim of gaining profit.

The National Bank of Kazakhstan is accountable to the President of Republic of Kazakhstan, within the limits of powers granted by legislation, is independent in its activity.The National Bank of Kazakhstan coordinates its activity with the Government of Republic of Kazakhstan, takes into consideration the economic policy of the Government and facilitates its implementation, if doing so is not in conflict with the realization of its main functions and implementation of monetary and foreign exchange policies.The National Bank has a common centralized system with a vertical administrative scheme. The highest administrative authority of the National Bank is the Board, the authority of executive management is the Council of Directors.

The primary goal of the National Bank is the maintenance of price stability in Republic of Kazakhstan. In the accomplishing of the main goal National Bank of Kazakhstan is responsible to settle the following tasks:

- the development and implementation of the state’s monetary policy,

- the support of payment system functioning,

- the implementation of foreign exchange regulation and foreign exchange control,

- the assistance for maintenance of financial system stability.

According to its tasks, the National Bank of Kazakhstan performs the following functions:

- realization of state monetary politics in the Republic of Kazakhstan;

- issuance of bank notes and coins on the territory of Kazakhstan;

- a bank of banks;

- a bank, a financial advisor and a financial agent of the Government of the Republic of Kazakhstan and other services for the Government and other state agencies according to agreements with them;

- organization and supervision of functioning of payment system;

- realization of currency control and currency regulation in the Republic of Kazakhstan;

- management of gold exchange assets of the National Bank;

- realization of control and supervision over the activities of the financial organizations and regulation of their activities within the competence of the National Bank, etc.

For implementation of the state monetary policy the National Bank:

- sets the official refinancing rate depending on the state of the money market, demand and supply for loans, level of inflation and inflation expectation;

- sets the levels of interest rates for the principal operations of the monetary policy with the aim of influencing upon the market interest rates at the financial market in the frames of monetary policy accomplishment,

- determines the standards of minimum required reserve requirements and realizes the control over their fulfillment,

- in exceptional cases, when it’s impossible to settle the inflation processes by the indirect methods, the National Bank has a right to introduce direct quantitative restrictions on the level and volume of certain kind of operations, by setting the limits of credits, freezing the interest rates on them, for stimulating or restraining the development of separate branches maximum level of rates on certain kinds of operations and deals of direct regulation of concrete kinds of credits;

- regulates the general volume of banks lending at the National Bank according to the accepted marks of the monetary politics and regulates the order, conditions of attraction and redemption, terms and limits of the granted loans;

- performs the reception of deposits, determines the order, conditions of granting and redemption, kinds, terms and limits of deposits attraction at the National Bank;

- performs the intervention to the currency market, appraisal and analysis of the currency demand and supply sources at the internal currency market;

- issues the state securities - short-term notes of the National Bank, sets the order, conditions of issuance, investment, circulation and redemption of the sort-term notes;

- buys and sells the state and other securities within the frames of the realized monetary policy;

- rediscounts the commercial papers according to the official refinancing rate, determines the order of discounting the commercial papers and conditions, for the commercial papers accepted by the National Bank for the rediscount.

Questions for self-control

1. What from the money mass consists from what?

2. What are money units?

3. What role plays the supply and demand on money market?

4. As structure of the credit system?

14. The financial system of state

14.1. State budgets

14.2. Taxation system

14.3. Social policy

Keywords: budget, income, expenditures, debt, state income

Execution by state provided by legislation function and problems requires the corresponding to resource. The mobilization these resource and their distribution are connected with arising the financial relations between state, taxpayer.

The nature to organizations of these relations is defined conducted by state financial-budgetary policy.

Thereby financial-budgetary policy this collection of the legal rates, action and action, conducted organ state authorities and local home rule in the field of financial relations for decision them their own problems and function.

Financial-budgetary policy expects the determination to purposes and problems in the field of finance, development mechanism to mobilizations of the bankrolls, determination priority in use the budgetary funds, management finance by means of financial-budgetary instrument of the regulation economic and social processes.

The main instrument financial-budgetary politicians in the field of credit-money relations are an emission of the money mass and discount rate of the Central bank RF. The types pertain to tax instrument and rates of the charging taxes, as well as particularities tax administration.

The nature of the financing the social sphere, amounts and standards free or favorable services for population, degree fees in social sphere also emerges one of the instrument financial-budgetary politicians.

Financial-budgetary policy state is annually defined in budgetary message of the President to Russian Federation, which is end according to budgetary code not later March of the month of the year, preceding next fiscal year.

The message defines for government RF landmarks when shaping and performance of the budget on forthcoming fiscal year.

The fiscal year (the budgetary period) in Russia complies with calendar year.

On regional level, depending on existing legislation in each concrete subject RF, can be provided budgetary messages of the leaders subject, but instead of messages can be only directions budgetary politicians, applicable as one of the document to draft budget.

The essential moment in financial-budgetary politician is a determination organ and organization, as well as their function in budgetary process.

The list organ, made budgetary authority, includes:

- an organs legislative (representative) and executive authorities;

- financial and tax organs;

- an organs money-credit regulation;

- an organs of the state financial checking;

- a main to managers credit;

- a state target out budget funds.

We stop on short feature main budgetary authority transferred structures.

Legislative (representative) organs consider and confirm the budgets, confirm the reports about their performance.

The executive organs realize consolidated financial planning, form the projects a budget, contribute them on consideration legislative organ, realize the performance a budget, and prepare the projects of the reports about their performance.

Money,-credit regulation realizes the Central bank to Russia, which with Government of the Russian Federation realizes the development and realization money-credit politicians state. Through structures of the Central bank on places is realized service money count federal treasury, count state out budget fund.

The main to managers of the budgetary funds (the ministry, state committees, federal services and others) first direct grantees of the budgetary funds, possessing right to distribute the facility between manager and grantee. The Main manager of the budgetary funds prepares the budgetary painting of the sharing the money on manager and grantee of the budgetary funding.

Checking-counting organs - are presented by counting chamber RF, similar checking organ in subject RF, are formed representative organ for realization of the checking for spending the facilities in accordance with law about budget.

All transferred organs are a participant of the budgetary process.

The budgetary process - a collection action representative, executive organ of power, budgetary organization on development and realization financial-budgetary politicians and budgetary system management.

The budgetary process includes:

- a consolidated financial planning;

- a formation, consideration, approving the budget;

- a performance of the budget;

- an analysis and checking for performance of the budget.

The tax system founded on determined principle system regulated rate of the right of the public relations, forming in connection with determination and charging the taxes and collection.

Present tax legislation does not contain the determinations of the notion of the tax system. However acted in past Law of the Russian Federation about base of the tax system in Russian Federation contained specified above notion. This notion is used in theories and on this day, with that only difference that earlier independent component of the tax system were considered duties but in accordance with taken effect chapter of the tax code to Russia state duty is referred to collection; that concerns the customs duties, in former timeless scanned by institute the general for tax system and for customs regulation, that on measure of the improvement tax and customs legislation lawmaker and researchers gradually came to opinion about accessories them to branches of the customs right especially.

The base of the tax system is a tax and dues. Their own functions realizes by means of tax system state on management (regulation, distribution and redistribution) financial flow in state and in more broad sense by economy of the country in general

The main functions of the tax system state and, accordingly, installed in state of the taxes are:

Fiscal, which essence consists in renewing income state on different level, required for performance by state their own function.

Distributing, which essence consists in sharing the total public product between legal and physical persons, branch and sphere of the economy, state as a whole and its territorial-administrative formation.

Adjusting, essence which in active influence state by means of economic lever and methods on economic and social processes in society.

Checking, which essence consists in observation and observance стоимостных proportion in process of the formation and distribution income different subject of the economy.

In modern condition can be worded following principles of the building of the tax system:

Obligation. This principle means that all taxpayers are obliged in good time and packed to pay the tax.

Fairness. The principle to fairness means that, on the one hand, all taxpayers, residing in equal condition on object of the taxation, pay the like tax, but, on the other hand, equitable must be a tax, which pay the different taxpayers on income. Wellness pay more, than poor.

Certainty. The normative acts before begin tax period must define the rules of the performance of the duties by taxpayer.

The comfort for taxpayer. The Procedure of the payment of the taxes must be suitable first of all for taxpayer, rather than for tax services.

The economy. The Costs on gathering of the taxes must not exceed the amount of the collected taxes, but must be minimum.

The proportion. Expects the determination of the restriction (the quota) of the tax burden to gross internal product.

Resilience. Implies quick adapting the tax system to changing situations Disposable taxations. The Same object of the taxation must be taxed by tax for stated period once.

The stability. Change the tax system must be not produced often and much sharply.

Optimal. The purpose of the charging the tax, for instance, фискальная, or природоохранная and t. d., must be reached to the best advantage with points of the choice of the source and object of the taxation.

Price. The tax must be paid in money form.

The unity. The Tax system acts on the whole territory of the country for all types taxpayer.

The realization principle taxations in miscellaneous country is realized with account of the particularities of the development, existing social-economic situation.

Presence owns independent from the other state of the tax system is one of the sign of the sovereign state.

The social policy - economic activity of the person, eventually, aims making the material base for improvement of the conditions to lives. Since people in its economic activity closely interconnected with each other in so far as and change the conditions to lives of the separate individual cannot occur in take-off from change of these conditions for the other individual. In turn, this requires the co-ordinations to activity on ensuring the happy circumstances to lives. Specified activity and has got the name social politicians. On essences, in social politician are expressed long-run objectives and results of the economic growing.

The social policy plays, with standpoint of the operating the economic system, двоякую role.

First, on measure of the economic growing, accumulations national wealth making the favorable social conditions main becomes for people by purpose to economic activity, v in this sense of the purpose of the economic growing concentrate in social politician; all are other aspects of the economic development begin be considered as facilities to realization social politicians.

Secondly, social policy is and factor of the economic growing. If economic growing does not be accompanied the growing of well-being, that people forfeit the stimuluses’ to efficient economic activity. Simultaneously, than above reaching step of the economic development, that above requirements to people, providing economic growing, their knowledge’s, culture, physical and moral development. In turn, this requires the further development of the social sphere.

The social policy is realized on miscellaneous level to economic activity. So, possible speak of social politician of the company (the corporations) in respect of its personnel, about regional and national social politician. Considering crowd depending modern world, possible speak of interstate social politician (for instance, in decision of the global ecological problems, overcoming social-economic backwardness of the groups of the countries or even continent).

15. The external economic activity of state

15.1. The world economy

15.2. International relations

15.3. The role of Kazakhstan on the international relations

Exist two approaches to determination notion closing economy and opening economy. In accordance with the first approach: Closing economy - an economy, not subject to what or influence on the part of the world trade, in which, consequently, no neither export, nor import what that nor was a sort.

In such interpretation closing economy is considered as theoretical model, which allows to understand the mechanism of the operating the national economy that is a main by problem macroeconomics analysis.

Studying Closing economy, we simplify the model of the circulation of the national income and connection on analysis income and expenses inwardly national economy. In this connection total demand in locked economy is presented as amount consumer, investment and state planned expenses:

AD = C + I + G

However the studies of the open economy requires variety of problems.

Opening economy - an economy, participating in the world trade and international financial relations with different country of the world.

The export and import in the aggregate characterize the volume to overseas trade of the country (the foreign trade turnover). A question is with standpoint macroeconomic analysis essential about correlation of the export and import (the difference in money expression between which presents itself foreign trade balance). If export exceeds for certain length of time import then in brought above formula costs on clean export become negatively value that can become reason of the reduction of the total demand and, consequently, can appear macroeconomics threat.

The world trade presents itself exchange goods and service between country by means of import and export.

The world trade can have positive importance, both for sphere production, and for sphere of the consumption.

She gives the country a possibility to import some goods and facilities if this will more cheaply, than produce their inwardly country.

Country also can get some products and facility, which otherwise were practically inaccessible because of inability of the internal producers to offer their (for instance, rare types cheese, high-tech product).

World trade promotes increasing to efficiency production, since stimulates displacement a resource from that branches, product which more favourably to substitute the import, in that branches, where country has a comparative advantage over their own trade partner.

Exactly comparative advantage in production determined good, which possess the country, provide the base of the international division of labor, but, consequently, and the world trade.

The Principle comparative advantage can be to the full marketed only in condition of free trade between country.

Free trade - world trade without some restrictions (such, as duties on import, quotas etc.), superimposed on free motion goods and services between country.

On protection these interest will get up the state, conducting corresponding to foreign trade politician.

The Foreign trade policy state comprises of itself determination of the strategies, as well as collection of the varied forms and facilities to activity state, directed on development and regulation of the trade relations with the other country of the world and their group.

Two main varieties modern foreign trade politicians emerge liberalization and protectionism.

The policy liberalization expects removing all the manner of barrier, preventing development to world trade. Alongside with realization of the principle comparative advantage, the country gets the additional advantage from liberalization of the overseas trade. She is concluded in that that liberalization stimulate the competition and limits the monopoly inwardly country.

The Policy of the protectionism is directed on the every possible and all-round protection of the home market from foreign competition. She also can be conducted in interest of the domestic business, striving to seizure of the foreign markets.

The protectionism presents itself barriers on way of free trade.

These barriers possible to divide into two greater groups:

1. The tariff barriers, which present itself system import and (in smaller measure) of the export duties. The duty presents the excise tax on import (export) goods. The duties are entered or to achieve the income in state budget (the fiscal), or for protection national production

2. Non-tariff barriers, which include the restrictive measures of the administrative influence, emerging in different forms: import (export) of the quota - a determination of the maximum volume goods, which can be imported (is exported);

- licensing - means need of the reception corresponding to document (the licenses) for import (the export) determined goods;

- introduction standard quality to product - a checking import goods with standpoint of their correspondence to national standard to safety and quality;

- monopolizing by state of the separate spheres to foreign trade activity;

- "Voluntary" export restrictions (in interest of the country-importer) - comparatively new form trade barrier: exporter consent to some restrictions in hope to avoid the more hard barrier.

The international trade policy presents itself collection of the different forms and methods of the international regulation of the exchange goods and service between countries.

7. PLAN OF PRACTICAL LESSONS

1. Economic theory: subject and specifics to methodologies

1.2 Introduction to economic theory

1.2 Methods and functions to economic theory

The purpose of the practical lesson:

1. Fixed passed material on subject "Economic theory: subject and specifics to methodologies"

2. Fixed theoretical knowledge on lecture material

Abstracts

1. Subject to economic theory

2. Functions and methods to economic theory

3. Name main economic schools

4. Economic categories

5. Economic laws

Literature

1. Послание Президента Республики Казахстан народу Казахстана «Стратегия «Казахстан-2050»: новый политический курс состоявшегося государства» от14.12.2012

Дата добавления: 2015-11-16