Authors

  • Farrukh Salamov
    Samarkand Institute of Economics and Service.

DOI:

https://doi.org/10.71337/inlibrary.uz.jmsi.123888

Abstract

 

the article is devoted to the process of investment in the theories of neoliberal economic schools.


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volume 4, issue 5, 2025

953

NEOLIBERAL INTERPRETATION OF INVESTMENT MECHANISMS IN A MARKET

ECONOMY.

Salamov Farrukh Fattoevich

Acting Professor of the Department of Economic Theory at the

Samarkand Institute of Economics and Service.

E-mail:

farrux_sies@mail.ru

Key words:

ease of obtaining credit , intertemporal coordination between investor and consumer

decisions , capital intensity.

Abstract:

the article is devoted to the process of investment in the theories of neoliberal

economic schools.

Unlike monetarists , neoliberals take a more rigid view of the process of regulating the monetary

and credit sphere. The ease of obtaining loans, which was a consequence of the expansion of

fiduciary money

1

, should be limited, which will lead to a decrease in the artificially increased

demand for material assets and their production in an unjustified volume

2

. F. von Hayek sees a

similar solution to the problem in the use of the theory of money neutrality, which partly

contradicts Keynes's position that there is no automatic market mechanism for equalizing savings

and investment rates, " intertemporal coordination between the decisions of investors and

consumers

3

." In addition to differences in the role of the state in establishing equilibrium in the

economic system, there are also obvious contradictions between the Keynesian and Hayekian

concepts associated with determining the causes of cyclical fluctuations. If the first explains the

onset of the crisis by insufficient investment, the second considers excess investment to be the

source of crisis phenomena.

F. von Hayek , in his work devoted to the study of the investment process, updates the provisions

of D. Ricardo and O. Böhm-Bawerk , according to which there is a redistribution of resources

between industries characterized by different capital intensity under the influence of real wages.

These fluctuations are reflected in the structure of capital, in the volumes of investment demand,

forming the prerequisites for the conclusions of the post-Kensians P. Sraffa and J. Robinson that

the source of investment is not only profit and capital accumulation, but also wages and savings.

Conclusion:

They look differently at the types of economic activity of economic entities, erasing

the usual boundaries between households and firms, assuming that both can participate in both

investment and savings processes.

1

The mechanism of appropriation of funds accepted for storage by banks and the issue of deposit receipts for

amounts exceeding actual deposits are common practice. At one time, the termination of the irregular deposit

agreement and the loan agreement was legally secured. All this led to the fact that modern banking systems operate

on the principles of fractional reserves, determining the permanent growth of credit money. ( Huerto de Soto , H.

Money, bank credit and economic cycles / Translated from English. - Chelyabinsk: Socium, 2008. Pp. 91-100.)

2

Representatives of the old institutionalism , in particular T. Veblen , take a similar position regarding the impact of

the money market on investment processes in the real segment of the economy. In his reasoning about the

dichotomy of industry and business, he comes to the conclusion that financiers and top managers of large

corporations, seeking to make a profit by acquiring securities, reduce the investment opportunities of participants in

the reproduction process. The desire of business "captains" to capture a larger part of the industrial system leads to a

failure in its mechanism, causing either underutilization of equipment or overproduction. ( Veblen , T. Theory of the

Business Enterprise/- M.: Delo, 2007. (pp. 45-50.)

3

Hayek , F. The fatal conceit. Mistakes of socialism / M.: Novosti, 1992. P.267-270.


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volume 4, issue 5, 2025

954

Bibliographic list

1.

M.M.Mukhammedov . , N.A.Kamilova // Economic theory / textbook. Samarkand 2023

pp. 288-289.

2.

Becker G.S. Family // Economic Theory / Edited by J. Eatwell , M. Milgate , P. Newman .

– M.: INFRA-M, 2004.
3.

John J. Murphy Technical Analysis of Futures Markets: Theory and Practice. Moscow

2011. 610 p.
4. Ermilina D.A. Investments in the light of economic theory. [Text] / D.A. Ermilina //- Regional

problems of economic transformation. Makhachkala - 2013 - No. 1 - pp. 239-246

References

M.M.Mukhammedov . , N.A.Kamilova // Economic theory / textbook. Samarkand 2023 pp. 288-289.

Becker G.S. Family // Economic Theory / Edited by J. Eatwell , M. Milgate , P. Newman . – M.: INFRA-M, 2004.

John J. Murphy Technical Analysis of Futures Markets: Theory and Practice. Moscow 2011. 610 p.

Ermilina D.A. Investments in the light of economic theory. [Text] / D.A. Ermilina //- Regional problems of economic transformation. Makhachkala - 2013 - No. 1 - pp. 239-246

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