The role of social inclusion in restoring macroeconomic stability

Authors: O. Krasota, PhD in Economics, Associate professor, ORCID ID: 0000-0001-8840-3119, Taras Shevchenko National University of Kyiv, Kyiv, Ukraine

Annotation: The article examines the economic and social consequences of macroeconomic instability due to the COVID-19 pandemic and the new crisis. The further economic development of national economies is considered on the basis of four probable macroeconomic scenarios: V, U, W and L scenarios of post-crisis recovery. It is assumed that Ukraine and most other countries have a W recovery scenario. National governments are trying to find effective recipes for overcoming the COVID-19 pandemic and a new crisis.However, different public policy options give only a partial result. Therefore, reducing GDP fall may be conducted in a way other than through lockdowns and quarantine measures. The article substantiates the need to change the approach to restoring macroeconomic stability. The author considers social inclusion to become an effective instrument of restoring stability and raising living standards. Social inclusion involves ensuring equal access of all citizens to economic resources and services of the social sphere, the inclusion of all members of society in various spheres of public life. It includes giving all the society members equal rights regarding access to all resources and goods and involving people in economic, social, and political changes. This lays the groundwork not only for overcoming the COVID-19 pandemic and the new crisis but also for significantly reducing inequality and differentiating society, improving the welfare of the population, restoring macroeconomic stability.

Key words: Social Inclusion; Macroeconomic Stability; Coronavirus; Crisis; Social Exclusion.

Received: 10/09/2020
1st Revision: 24/09/2020
Accepted: 19/11/2020

DOI: https://doi.org/10.17721/1728-2667.2020/213-6/1

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