THE MECHANISM OF DIRECT CORRELATION IN 2D MODEL 'STANDARD OF LIVING – CYCLE'

Abstract

The population standard of living is enormously affected by the position of state in a certain phase of cyclic development. The state influences the economic standing through various instruments depending on the level of economic development it takes: macro-, mezo-, nomo-level. Economy never develops straightforwardly. It can be shown in a certain law of wave-shape repetition: rise, downfall, crisis, recovery. Such repetitions of phases of growth and recession are called an economic cycle. The article demonstrates the direct correlation between the standard of living and cycles. Tools of state regulation of the standard of living are considered. The author puts forward the element structure including a combination of forms, types, methods of organizing external and internal relations by fixing quantitative and qualitative parameters. Mechanism functioning in present situation of unstable market conditions was shown.

Keywords

• population standard of living
• economic cycles
• mechanism of 2d model
• exchange rate
• dynamics of currency rate