Modelling the impact of financial liberalization on indicators of the internal macroeconomic equilibrium of EU countries

Abstract

The hypothesis about the positive impact of financial liberalization on economic growth
proposed by R. McKinnon and E. Shaw raised some questions regarding testing this hypothesis,
development and evaluation of mechanisms of its influence. Over time, the interpretation of the concept
of financial liberalization has evolved considerably, both qualitatively and quantitatively (by the
number of effects that it causes). Most researchers still are unanimous that an effective external
financial liberalization should be preceded by internal and necessary series of conditions of economic,
financial and administrative system which have to be reached, so that the state did not experience any
disruption. Therefore, a model of the impact of financial liberalization on indicators of the internal
macroeconomic equilibrium in European countries is built in this paper. This will help to discover how
the macroeconomic equilibrium changes in the countries, analyze the importance of financial liberalization
and its impact on various economic indicators and so on.