How to Improve the Effectiveness of Economic Policy

The article analyzes the hypothesis of the statistical significance of the institutional factor in the process of increasing the efficiency of economic policy in developing countries. It shows that the expansion of domestic credits to the private sector may bring about contrary results if corruption in the country is higher than the threshold level. The efficiency of anti-inflation policy in many respects depends on the quality of the banking system, and increasing this efficiency requires the strengthening of banking potential and energy saving. The article justifies the priority of institutional development measures over selective measures of government support of separate sectors of economy.