Macroeconomic instability and its consequences for the economy of Ukraine

Abstract

Introduction. The article examines the problem of unemployment, intense growth of inflation, reduction of the gross domestic product. The deterioration of macroeconomic indicators leads to the impoverishment of the majority of the population of our country. Unemployment is growing rapidly primarily due to supply constraints by external factors – the worsening payments balance, worsening external debt and demands of the adoption of stringent savings programs with the IMF, the war in the east. All these factors lead to a drastic reduction in the pace of industrial growth, lower real wages decline in employment in both urban and rural areas.

Purpose. The purpose of scientific research is to reveal the interdependence of macroeconomic indicators such as unemployment, inflation, gross domestic product and the consequences for the economy of our country in the trend of deterioration. We must identify potential losses to the state budget in the GDP of the potential backlog.

The method (methodology). To solve these problems we have applied dialectical method, classification and analytical method, statistical method.

Results. According to the results of the study of macroeconomic instability in the country we have come to the conclusion that the concept of inflation is caused by rising costs (in all sectors of our economy) and accompanied by a decline in real national output and consequently employment. The proposals as for the formation of wholesome macroeconomic environment are given.

Scope results. The research work can be used in order to develop programs of economic and social development in the departments of Economic Development of regional administrations; in the educational process of higher educational institutions.