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SocioEconomic Challenges
Article . 2020 . Peer-reviewed
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SocioEconomic Challenges
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Assessing The Level Of Macroeconomic Stability Of EU Countries

Authors: Andrii Zolkover; Jurij Renkas;

Assessing The Level Of Macroeconomic Stability Of EU Countries

Abstract

This article is devoted to the development of methods for assessing the integrated level of macroeconomic stability of the country. Systematization of literature sources and approaches to determining the factors influencing macroeconomic stability and methods of its assessment showed that this problem is still unresolved and needs attention, given the epidemiological threats as additional factors destabilizing the world economy. The urgency of solving this scientific problem lies in need of an adequate and timely response to changes in the development of the national economy to prevent them from escalating into crisis phenomena. The study of assessing the integrated level of macroeconomic stability in the country was carried out in the article in the following logical sequence: 1) the formation of the statistical base of the study in terms of three groups of indicators: stimulants, disincentives and nominators; 2) bringing the indicators of the statistical input base of the study to a comparable form; 3) determining the priority of the impact of the components of the indicator in the integrated indicator; 4) assessment of the integrated level of macroeconomic stability, considering both the ranking of input indicators and the strength of their impact on the formation of the desired integrated indicator; 5) conducting a qualitative interpretation of the integrated level of macroeconomic stability. The methodological tools of the study were the following methods: minimax approach to the normalization of the statistical base of the study; sigma-limited parameterization method and Pareto method for determining the priority of the impact of the components of the indicators of the integrated level of macroeconomic stability; Erlang’s formula for estimating the integrated level of macroeconomic stability. The study period was 2006-2019. The countries selected for the study were the following: Poland, the Czech Republic, Lithuania, Latvia, Hungary and Slovakia. The article presents the results of the assessment of the integrated indicator, which showed that Lithuania, Latvia, the Czech Republic and Poland achieved macroeconomic stability on average from 2014 at 84%, Slovakia – 65%, while Hungary had relative stability from 2010 to 2016, at the level of 76-82%, but in 2017-2018 there is a destabilization of economic development to 45%. The results of the study can be useful for public authorities in determining macroeconomic stability as an element of national economic management, the use of which will protect against financial and economic crises by taking a set of preventive measures. Keywords: Pareto diagram, macroeconomic stability, minimax approach, ranking, sigma-limited parameterization, Erlang’s formula.

Keywords

сигма-ограниченная параметризация, sigma-limited parameterization, 330, pareto diagram, діаграма Парето, формула Ерланга, HM401-1281, ranking, macroeconomic stability, формула Эрланга, Sociology (General), макроэкономическая стабильность, erlang’s formula, minimax approach, Pareto diagram, диаграмма Парето, Economic history and conditions, HC10-1085, обмежена параметризацією сигма, минимаксный подход, макроекономічна стабільність, Erlang’s formula

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    influence
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    Top 10%
    impulse
    This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
    Top 10%
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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
14
Top 10%
Top 10%
Top 10%
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