The dynamics of real income and possible methods to improve population welfare

Since the spring of 2011 the economic situation in Belarus has been characterised by instability in the foreign exchange market, the tightening of monetary and fiscal policy as well as galloping inflation. In such circumstances there was naturally a decrease in real income per head in the population. As the paper suggests, this trend is becoming a significant problem for the country because the economy is a social market economy and one of the main goals of economic development for the state is to improve the welfare of its citizens. However, the paper explains, the administrative policy to increase income that has been put into practice in the past has proven to be ineffective in changing economic conditions.