Financial tools to ensure the development of the national economy

Abstract

The article tackles the problem of the lack of consistency between the fiscal and monetary levers and relevant instruments of state regulation. The author defines the main factors in the development of Ukraine's real sector, and provides a comparative analysis of financial sources in the EU and Ukraine, which indicates the need to address the problems of investing in Ukraine in order to achieve a long-term growth. The article deals with the problems of financial security of the investment process, implementation of innovative investment projects as well as funding for post-crisis recovery and stabilization in the real economy of Ukraine. The author establishes that the revival of the state participation becomes increasingly important in financing projects of long-term economic development; as well as in stimulating research, development and innovation enterprises, and encouraging institutional investors and shareholders to participate in a long-term investment. Given the financial and economic situation in the real economy, it is determined that the investment problem should be resolved along with the restoration of the companies' financial stability (post-crisis recovery). The author argues that the imbalance in the flow of financial resources is one of the main causes of the recurrence of the crisis. Preconditions of the risks of imbalance in the financial flows are defined as well as the reasons for the lack of financial resources for operational and investment activities. Proposed various indicators to assess the effectiveness of the use of financial resources. Developed a balance sheet based approach to assess the capital outflow from Ukraine's real economy. The author discusses the necessity of reform the levers and tools of financing the real sector based on a mutually ensuring financial cooperation between the state and businesses. There is an overview of the international experience in the financial security of economic development. Various recommendations are provided to improve the public policy of financial security of Ukraine's economy.