The role and the meaning of crisis for the modern economic systems

Abstract

Introduction.  Cyclical nature of development is typical for the economic systems of any kind. It means that tere is a fluctuation between the periods of stability and economic decline.  The differences in the role and meaning of crisis for each of the modern economic systems in their turn result in differences between various systems of anti-crisis management.  Such situation calls for clear understanding of the economic sense of the following concepts – «economic system», «crisis», «anti-crisis management».

Aim.  The aim of this article is to conduct research into the concept of “economic system”, to improve the existing classifications of modern economic systems, to outline the role and meaning of crisis for the economic systems of every kind, to prove the importance of anti-crisis management as well as to define its peculiarities in terms of modern economic systems.

Methods.  The following methods have been implemented in the course of this research: comparative method (in order to contrast various definitions of the notions “economic system”, “crisis”, “anti-crisis management”); method of analysis (in order to study thoroughly the role and meaning of crisis and anti-crisis management for the modern economic systems).

Results: One may distinguish between the following types of economic systems – traditional, command, market and mixed.  Crisis plays a specific role in each of these systems.  It very seldom occurs within the traditional economies, since they are as a rule very poorly integrated into the world economy.  As to the command economies – crises are usually concealed from the general public and thus solved by party leaders only.  As far as market economies are concerned, crises are considered to be a normal stage of development and are usually accompanied by an efficient system of anti-crisis management, which makes it possible to recover from crisis with minimum losses.  Mixed economy is characterized by the constant, regular emergence of crises of various kinds as well as by the rather unformed system of anti-crisis management.