EMPIRICAL LINKAGES BETWEEN MACROECONOMIC STABILITY AND DEMOCRACY
Abstract
The main goal of the paper is analysing the democracy impact on macroeconomic stability in Ukraine. In the paper the authors analysed the main approach to develop the economic and mathematical models, and factors which emphasises the correlation between macroeconomic stability and democracy. The authors highlighted that using of different methods to estimate level of democracy, which mostly relate from the theoretical approach to define the democracy and explanatory indicators which couldn’t explain the character, features and power of corresponding correlation. In the apparent, the empirical measures were proposed to make from the political regime which formed country’s political system point of view to achieve macroeconomic stability: monetary and fiscal system, openness economy. Accordingly, the main dependence indicators are growth rate of money supply, the fiscal balance to GDP, the trade openness as a sum of export and import to GDP. Besides, the authors used the dates of international rating as the explanatory indicators of country’s democracy. In the paper the authors’ theoretical hypothesis are approved by the findings.
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