Theoretical evaluation of the fiscal and monetary influence on growth

The subject of the study – fiscal and monetary determinants of growth.
The purpose of the article is to study the evolution of the theoretical fundamentals of fiscal and
monetary factors’ effect on growth.
Research methodology – scientific search and methods of analysis and synthesis in the perspective
trends of growth theory development.
Results. The study results have shown how dynamic was the formation of ideas of the founders
of economic thoughts in the qualitative and quantitative content of functional connections between
areas of the economy at the macro and micro levels, which are gradually changing driving by the global
transformation processes. The emergence of endogenous theory and the technological progress of
information processing tools made it possible by composing theoretical models to use a whole set of
concepts previously associated with microeconomics. In the context of the historical narrative about
the Government and its role in the economy and a systematic approach to building a comprehensive
view of money’s nature, the border between purely fiscal and monetary instruments is gradually
dissolving. As a result, a great scope of new functionality became available for implementing economic
policy. Thanks to the newly created conditions, the Government authorities’ responsibility and the
ability to achieve the intended goals are increasing enormously.
Application of results. Economic sector: economic theory, macroeconomics, management of
national economy.
Conclusions. One of the progressive directions of growth theory development is implemented in the
research field of fiscal and monetary factors, their effectiveness and practicability, depending on the
intended goals of economic policy and macro–environment changes.