Market self-regulation and state planning of the economy in conditions of demand and resource limits

Authors

  • Aliaksei A. Bykau Belarusian State Economic University, 26 Parcizanski Avenue, Minsk 220070, Belarus
  • Natallia A. Khaustovich Belarusian State Economic University, 26 Parcizanski Avenue, Minsk 220070, Belarus
  • Uladzimir A. Parkhimenka Belarusian State University of Informatics and Radioelectronics, 6 Piatrusia Broŭki Street, Minsk 220013, Belarus

Keywords:

economic model, government regulation, deficit, market economy, budget constraints, ESG-capitalism, non-systemic constraints

Abstract

The paper considers the possibility of applying the theory of resource-constrained and demand-constrained systems, to the description and resolution of problems of failures in the normal functioning of economic systems under external shocks. Such shocks include the consequences of COVID-19 and the lockdown, as well as sectoral sanctions applied to the Belarusian economy. The question of which of the economic systems, planned or market, is best able to withstand these shocks is analysed. As a first approximation, it is shown that the Keynesian and post-Keynesian concepts of economic regulation through demand stimulation do not allow to completely circumvent resource constraints.

Author Biographies

  • Aliaksei A. Bykau, Belarusian State Economic University, 26 Parcizanski Avenue, Minsk 220070, Belarus

    doctor of science (economics), full professor; professor at the department of economics and management, Higher School of Management and Business

  • Natallia A. Khaustovich, Belarusian State Economic University, 26 Parcizanski Avenue, Minsk 220070, Belarus

    PhD (economics), docent; head of the department of economics and management, Higher School of Management and Business

  • Uladzimir A. Parkhimenka, Belarusian State University of Informatics and Radioelectronics, 6 Piatrusia Broŭki Street, Minsk 220013, Belarus

    PhD (economics), docent; head of the department of economics, faculty of engineering and economics

References

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Published

2022-11-25

Issue

No. 2 (2022): Journal of the Belarusian State University. Economics

Section

E. Macroeconomics and Monetary Economics

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How to Cite

[1]
Bykau, A.A. et al. 2022. Market self-regulation and state planning of the economy in conditions of demand and resource limits. Journal of the Belarusian State University. Economics. 2 (Nov. 2022), 53–63.