On New Mechanisms for Providing Economic Growth in the Context of Sanctions

DOI: 10.33917/es-4.190.2023.60-63

First the pandemic and then geopolitical tensions in the world created new conditions and posed new challenges for the economies. Among the mechanisms, needed to finance increased government spending, many countries have begun to apply the approaches of the so-called Modern Monetary Theory. It seems that the use of its elements could also be expedient in Russia to finance the necessary transformation of the economy.

References:

1.World Bank. Global Economic Prospects. June 2023. URL: https://openknowledge.worldbank.org/server/api/core/bitstreams/6e892b75-2594-4901-a036-46d0dec1e753/content.

2. Moiseev S.R. Khaip vokrug (ne)denezhnoi (ne)teorii [Hype around (non)Monetary (non)Theory]. Voprosy ekonomiki, 2019, no 9, pp. 112–122.

3. Ershov M.V. Kak finansirovat’ novye gosraskhody: vozmozhnye mekhanizmy v usloviyakh sanktsii [How to Finance New Government Spendings: Possible Mechanisms in the Environment of Sanctions]. Ekonomicheskie strategii, 2022, no 6, pp. 26–29. DOI: 10.33917/es-6.186.2022.26-29.

How to Finance New Government Spendings: Possible Mechanisms in the Environment of Sanctions

DOI: https://doi.org/10.33917/es-6.186.2022.26-29

Sanctions against the Russian Federation have created fundamentally new conditions for the functioning of the Russian economy.

This poses new challenges, which require government spendings increase. It appears that Russian regulators have unused mechanisms, the use of which will provide the economy with new money, without complicating the situation of other sectors. The article suggests mechanisms that highlights internal sources of liquidity formation for the economy. In the environment of sanctions, such mechanisms also increase the independence of monetary policy from external constraints.

References:

1. Kommentarii Banka Rossii po operatsiyam na rynke gosudarstvennogo dolga [Bank of Russia’s Commentary on Operations in the Government Debt Market]. Bank of Russia, 2022, 18 marta, available at: http://www.cbr.ru/eng/press/event/?id=12763.

2. TsB RF [Central Bank of the Russian Federation]. Obzor riskov finansovykh rynkov, 2022, no 2–3(60–61), fevral’-mart.

3. Bank Rossii. Osnovnye napravleniya edinoi gosudarstvennoi denezhno-kreditnoi politiki na 2023 god i period 2024 i 2025 godov: Proekt ot 11 avgusta 2022 g. [Bank of Russia. Guidelines for the Single State Monetary Policy for 2023 and the Period of 2024 and 2025: the Draft of August 11, 2022]. Bank Rossii, pp. 24–25, available at: https://cbr.ru/about_br/publ/ondkp/on_2023_2025/

4. Ershov M.V. Kakaya ekonomicheskaya politika nuzhna Rossii v usloviyakh sanktsii? [What Kind of Economic Policy does Russia Need in the Face of Sanctions?]. Voprosy ekonomiki, 2014, no 12, pp. 37–53.

Assessment of the Sanctions Impact on the Economic Situation in the Russian Federation

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Assessment of the Sanctions Impact on the Economic Situation in the Russian Federation

Introduction of sanctions, contrary to the statements of Russian politicians, has an impact on the Russian economy, and the impact is quite negative. The crisis in the Russian economy is confirmed by macro-indicators. Despite this, distortion of statistical data allows to demonstrate the illusion of economic growth, although it is seen only in certain sectors of economy. Real incomes of the population have also decreased and continue to fall down. The article proposes a number of strategic measures that will allow to minimize the damage caused by the imposed sanctions and even partially to benefit from them for the Russian economy.

The System of Stifling Tricks of the Bank of Russia

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Implemented in recent years monetary and issuing policy of the Bank of Russia artificially stifles development of the domestic economy, destroys the remnants of science intensive industries, preserves the technological backwardness and strengthens Russia’s status of the “resource colony” and the end market for transnational capital.

Russia And the International Crisis: the First Results

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