The degree of economic freedom in the context of resistance to economic instability in EU countries

Abstract

The model of public regulation has an impact on different areas of the economy. The paper focuses on the aspect of the level of public intervention in the context of stability of economic growth. The aim of the research is to examine the statistical relationship between the degree of economic freedom (measured by Index of Economic Freedom)and the intensity of the reaction of the economy to the financial crisis of 2008 (measured by the standard deviation of the real GDP growth rate). There search hypothesis is the statement that such relationship exists. The study is based on data from 2007-2011 for European Union countries. The following methods were used in the paper: statistical description and comparative analyses.