Possibilities of Russian Economy Monetization

DOI

10.2991/aebmr.k.200730.116How to use a DOI?

Keywords

budget rule, monetary aggregate, dynamics, ruble exchange rate, monetization of economy, federal loan bonds, economic growth

Abstract

The research is devoted to the issues of the monetization of economy. The topic of the study is the possibility of monetization of the Russian economy. The purpose of the research is to identify the possibilities of changing the monetization coefficient of economy, by analyzing the impact of changes on economy in the dynamics of GDP growth rates in US dollars and rubles, the GDP deflator, monetary aggregate M2 and the ruble exchange rate. Statistical, comparative and logical methods of analysis are used in the study. The article identifies the reasons for the forecasted decline in economic growth in emerging and developing countries, as well as global economy. The historical role of money is shown as well as its impact on economy and society from coining of money in Athens to the transition to a peer-to-peer payment system using “Bitcoin” and “Altcoin”. The study reveals the stabilization of the dynamics of GDP growth in US dollars and in rubles, the GDP deflator and the M2 monetary aggregate in the range from 4 to 12 %. It is found that the changes in the monetization of the Russian economy are associated with the volatility of the ruble exchange rate, which is adjusted by the “budget rule”. The growth rate of the ruble exchange rate is less than the growth rate of the purchase of foreign currency, etc. It is advisable to use the results of the study in the formation of an agreed equilibrium triad of monetary, budgetary and entrepreneurial relations to ensure sustainable economic growth in Russia. The analysis of the possibilities and consequences of changing the monetization coefficient of Russian economy revealed the decisive role of the “budget rule”, which helps to reduce the volatility and inflation of ruble exchange rate and replenish international reserves. The stabilization of the ruble exchange rate, in the conditions of continued growth in foreign currency purchase volumes, led to the need to actively increase the issue of federal loan bonds with bond yield not lower than the key rate and to increase the reserve requirements for the banking sector, which negatively affected the growth rate of the volume of loans granted to legal entities.

Copyright

© 2020, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - V.V. Smirnov
AU  - O.N. Kadysheva
AU  - V.L. Semenov
AU  - O.M. Anufrieva
AU  - N.V. Voskresenskaya
PY  - 2020
DA  - 2020/08/01
TI  - Possibilities of Russian Economy Monetization
BT  - Proceedings of the Russian Conference on Digital Economy and Knowledge Management (RuDEcK 2020)
PB  - Atlantis Press
SP  - 631
EP  - 636
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.200730.116
DO  - 10.2991/aebmr.k.200730.116
ID  - Smirnov2020
ER  -