Role of the state in the market economy

The article shows that the most important function of the participation of the institution of the state in a market economy is to maintain a competitive environment. Due to market and of the market self-regulation mechanism failures the functions of the state are shill exist. Are administrative and economic measures eliminating market failures, including monopoly, inflation, unemployment and other dysfunctions of the market system analyzed. The interrelation of market economy and the state in modern society is indicated.