Economic resilience in the context of institutional logic

Abstract

Economic resilience of the system is one of the main indicators that characterizes its qualitative and quantitative aspects, response to external and internal shocks and challenges. The problem of resilience becomes especially important in extreme situations (economic and financial crises, ecological and natural disasters: typhoons, floods, earthquakes, etc., political revolutions, military conflicts). The current Russian-Ukrainian war has become a serious test of the stability of the domestic economy, in which relative macroeconomic balance is ensured in extremely difficult conditions due to the maximum mobilization of domestic resources and effective foreign aid. An important component is institutional stability, i.e. operational response to changes in the economic situation of authorities and management at all levels, legislative institutions, financial and banking institutions, foreign economic sphere, attention to such attributes of institutionalism as trust, social optimism, mentality, traditions, habits, etc. In a generalized form, at the theoretical level, institutional sustainability is proposed to be considered in the article in the context of institutional logic in three hypostasises at the micro-, macro-, and geo-economic levels. Institutionalism, including economic theory, is dominated by traditional, formal logic, which mainly uses natural (scientific) language. Consciously or intuitively, the main laws of logic are taken into account: identity, contradiction, the Law of Exclusion, sufficient reason. The logic of evolutionism is considered the basis of institutional logic, which provides a general idea of changes in all components of the institutional environment. In the institutional economic theory, two levels of institutional logic are visible: the macro level (Veblen and the old American school, North) and the micro level (Coase, Williamson, etc.). In the publications of the last quarter of the 20th century the logic of the global (mega) level is also analyzed. Evolutionism is the basis of the logical construction of institutional logic in economic theory. Generalizing indicators that synthesize different approaches of institutional logic regarding economic sustainability are the institutional logic of sustainability (ILS) and the logical index of sustainability (LIS). Institutional logic of the micro- level was initiated by R. Coase, continued by O. Williamson and others. The logic of transaction costs of R. Coase is formulated in two theorems: regarding zero costs, ownership and economic results, and the principle of internalization. The second theorem was called "comparative logic of economic organization". In critical relation to both of Coase's theorems, they remain basic constructs of micro-level resilience. Among the indicators and criteria of macro-level economic resilience, monetary components are of leading importance, which, under the conditions of a free market, provide a kind of warning signals to the economic system as a whole. A feature of this approach was the transformation of the monetary component into a system of "monetary and financial analysis". This reflects fundamental qualitative changes in recent decades regarding the structure of the economy, in which the financial subsystem acquires dominant (key) importance, affecting aggregated macroeconomic indicators: growth, inflation, employment, etc. Globalization, that is, the mega-level, its economic resilience, inevitability and irreversibility are characterized by three deterministic logics: technical (technological), economic and political.