Vynnychka M. The Fluctuations of economic growth under the conditions of transformative economy

The thesis is dedicated to study of theoretical, methodological and practical aspects of macroeconomic fluctuations under the conditions of transformative processes. The thesis provides a brief overview of the recent literature on macroeconomic volatility in developing countries, highlighting its causes, consequences and possible anticyclical policies. It is emphasized that macroeconomic volatility is both a source and a reflection of underdevelopment of economies. It is shown with a help of econometric investigation that high aggregate instability in developing countries result from a combination of large internal and external shocks, volatile macroeconomic policies and weak institutions. Volatility entails a direct welfare cost for risk-averse individuals, as well as an indirect welfare cost through its adverse effect on income growth and development.