Assessment of the limits of state control on the market

The main purpose of this work is to analyses government regulation of economy, to survey its policy of regulation and to give assessment. In the first part, on the grounds of scientific economical theories and ideologies of political economy, advantages and disadvantages of government intervention into economy are analyzed, as well as preconditions for such regulation. In the second part, the example of Lithuania is examined, analyzing those spheres where the regulation of market exists. In the third part, taking into consideration the contemporary economical situation, attempts to revive economy taken by the Lithuanian government are evaluated. While the economy in the whole world is facing recession, macroeconomic indicators in Lithuania are also low. As a result, this study analysis the reasons of this phenomenon and gives suggestions how to avoid it. As the problem is significant at the microeconomic level, the results of the study will help to reveal the reasons why this economic policy is ineffective. Furthermore, conclusions and suggestions at the end of this study will present methods of government regulation that could accelerate recovery from economical crisis recession. This work includes 8 charts and 24 pictures