Keynesian and Monetarist Approaches to Regulation of the Labor Market in the Transition Economies of EECCA Countries

Abstract

In the modern world, there is a process of mixing economic theories and policies in government management, which is associated with a reorientation to the service sector in developed countries, the formation of new economic leaders, an increase in competition and new forms of trade. In these conditions, it is necessary to analyze existing economic theories of state governance. This study analyzes Keynesian and monetarist approaches to the regulation of macroeconomics, identifies their main patterns and features. As an object of analysis, it was decided to consider the countries of the EECCA (Eastern Europe, Caucasus and Central Asia) region, which are carrying out socio-economic reforms for the transition to a market economy, where special attention was paid to Kazakhstan, as one of the leaders in the region in terms of economic development in recent years. The result of the study is the conclusion that countries use both theories in government, but Keynesianism is used to a greater extent and monetarism to a lesser extent. The tools of Keynesian theory most typical for EECCA countries are stimulating demand in the labor market by creating new enterprises, stimulating investment in the state, and carrying out tax reforms. The monetary component is manifested in the management of inflation, the government's credit policy to stimulate the market, and the management of the exchange rate. It is this combination of tools that creates the greatest effect today, which is confirmed by this study and the assessments of experts from international organizations.