Effect of monetary regulation mechanisms on the formation of post-privatisation environment (Summary)

Vaja Kakabadze

According to the given article, the government should attach much attention to the change of currency rates with the view of preserving and improving favourable post-privatisation environment.

The article also determines the aspects of managers’ activities in marketing business and stipulates the significance of psychological price limit in the conditions of price competition.
The article also describes the monetary regulation principle of international trade, interdependence of net export and real exchange rate. It says that the high rate of net export means that post-privatisation environment is satisfactory in the given country.
The analysis of the article reveals the fact that post-privatisation environment is also influenced by the change in reserve rates of banking system. This is performed by the decision of the state. Any change in rates of bank reserves and allocation of credits under strict terms serve to reduce national currency deposits. Tightening of credit terms entails deterioration of loan possibilities, cuts total expenses, and reduces potentials of post-privatisation environment ? production release.
The article stipulates the role of devaluation as one of factors for the development of international trade and post-privatisation environment that has significant effect on unemployment level, causes gradation of population and therefore, determination of participation level in privatisation process.
In our opinion, the given article might be helpful for the planning of correct economic policy.