Director, Research Centre of Information Technologies, “TELAN Electronics”, Kiev, Ukraine
JEL classification: A12 • C02 • F43 • L14 • M21 • P51
It is shown that Adam Smith's ‘Invisible Hand’ in the economy is the human factor. Due to the human factor, the modern economy is described with parametric differential equations with coefficients in the form of random functions of time. This is why it is unpredictable, and economic crises are inevitable. In order to make the economy controllable, crises-proof and rapidly developing, the influence of the human factor has to be minimized. New economic tools are offered to solve the given problem. The implementation of the given recommendations will allow quickly developing a prosperous economy.
economic crisis, economic reform, crisis-free economy, ‘invisible hand’, ‘goods-money-goods’, human factor
