Special Features of the Ukrainian Fiscal Policy Transmission Mechanism under Increasing Macroeconomic Instability

The paper describes the key features of functioning of the post-communist economies, which determine the specificity, essential to transmission mechanisms of economic policy. The analysis reveals existing significant influence of institutional factors on the efficiency of fiscal policy transmission mechanism in transition economies. The authors prove a heavy dependence of efficiency of fiscal policy transmission mechanism in Ukrainian economy from institutional factors such as management of government expenditures, consumers’ expectations and the level of fiscal decentralization.